This week, we’re looking back at the week of October 12-16 to analyze the residential real estate market in the Tri-Cities and surrounding areas. As always, keep in mind that these numbers are rounded averages and won’t be 100% exact, but they do give a great snapshot of the current market. All data was collected on the MLS (multiple listing service) for the Tri-City associations.
Listings
Last week, there was an average of 521 residential properties for sale, for an average listed price of $397,185. Of those, 241 were new construction, for an average listed price of $419,900. The average days on the market was 36.
What do these numbers mean? The inventory of homes for sale once again dropped this week, leaving just a scarce 521 residential properties for sale. For a population of over 300,000, that’s an extremely low number of available homes. More than that, nearly half of them were new construction, leaving even fewer homes move-in ready. The average listed price has risen again this week, likely reflecting the decreasing inventory leading to a lack of competition and a lesser need for competitive pricing. Comparatively, the amount of new construction on the market has risen for another week. New construction is a thriving market in the Tri-Cities. The average listed price of new construction has remained steady for several weeks after a slight increase from summer prices, likely due to increased lumber costs. The average days on the market climbed ever so slightly, up to 36, which is still just over a month for properties to go under contract.
Pending
There was an average of 1027 properties pending last week, with 444 of those being new construction. The average listed cost of pending properties was $335,000, with an average of 4 days on the market.
What do these numbers mean? The amount of residential properties pending has remained fairly steady over the past few weeks, although still lower than our summer amounts. Fewer pending properties is likely a direct result of fewer properties being for sale. The average listed price of pending properties has been slowly but steadily rising week after week, and this week continues that trend. Just like with listed prices, lower inventory leads to less competition, and less competition allows for higher prices. Despite pending inventory decreasing, pending new construction properties have increased week after week. The new construction market in the Tri-Cities is booming, and with prices predicted to continue to increase into 2021, now is a better time than ever to buy new construction. It seems many people are catching onto that trend, as we see new construction pending continuing to rise. The average days on the market has remained steady at an incredibly short four days, meaning the average pending property is taking just four days to go under contract. If you were thinking of selling, this means you won’t have to wait very long to find buyers for your property, if it’s correctly priced. As you can see, the average listed price and average listed price of pending properties are quite different, with pending properties being priced significantly lower. This just shows that the homes that are selling are more competitively priced.
Sold
A total of 105 properties sold last week, for an average cost of $364,159. 27 of those were new construction, for an average price of $441,167.
What do these numbers mean? The amount of sold properties has once again fallen, although this is no doubt because of a decrease in inventory. Fewer homes to sell, of course, leads to fewer homes being sold. The average sold price has risen this week, although still lower than our summer averages. Like with listed and pending properties, sold new construction properties has once again increased this week, reflecting our incredibly strong new construction market in the Tri-Cities. New construction prices have also risen this week, likely related to increased listed prices and increased construction costs.
So what do these numbers mean for you? As a seller, now is a fantastic time to sell your home. As inventory continues to decrease, it’s likely we’ll see prices increase to compensate. Lack of competition gives your home just that much more interest, with the chance of pushing the listed price even higher than you could have over the summer. And you likely won’t be waiting long to sell your home, with an average of four days on the market for properties to go under contract. If you’re thinking of selling or just interested in what your home could be worth as our inventory drops, contact our Listing Specialist today for a free property valuation report on your home!
As a buyer, the market remains incredibly competitive to find your perfect home. With fewer and fewer properties available, you’ll have to look hard and be quick when you find something that interests you. If you decide to wait until tomorrow to see that home, it might not be on the market by the following day. You’ll need a skilled, aggressive agent to help you find the homes you want and get your offers accepted. Luckily for you, we have those agents! Our Buyer’s Specialists are experienced and eager to help you find your perfect home, so contact us today! Don’t be scared off by increasing prices, either; interest rates are extremely low, as low as 2.5% from some of our lenders! Qualifying for the home you want has never been easier. If you were thinking of buying new construction, now is a fantastic time. Building prices are expected to continue to increase well into 2021, with lumber prices skyrocketing and new Washington State Energy Codes coming into effect on February 1, 2021. The prices you see now are as low as they’re going to be, and new construction is readily available. We have builders ready to go, on their lot or yours, so contact our Builder’s Specialist today to see what we can do for you!