West Olympia Market Update for October 2013

Here is the West Olympia Market Update for October 2013 (area 444 on the map below).

West Olympians love their part of town! There is The Evergreen State College and South Puget Sound Community College, Capitol Medical Center and the shopping mall to name a few amenities.  West Olympia offers some residents with desirable inlet water views, new construction and vintage homes.  Many residents are in the Olympia School District.

Market Snapshot:

Average home prices for West Olympia are down from last year at this time, however the market is still evening out.  Thurston County overall has seen incremental home sales price increases (2.6% last month) but this slight downturn for West Olympia isn't a red flag for home prices decreasing.  Thurston County's average home price is currently $238,799.

The number of homes sold is great to see!  Buyers are coming back and sellers are pricing appropriately and accordingly with the market.  West Olympia had 9% of sales in Thurston County between January and September 2013.

Along with the increase in the number of homes sold is a solid absorption rate.  Thurston County is seeing more areas that are balanced and moving towards a seller's market.  A balanced market is if all the inventory sold in 4-6 months, so West Olympia is currently just a bit over the balanced market indicator.  The average absorption rate for Thurston County is 5 months.

What does this mean for Sellers?

The bottom has hit and we are moving passed the lowest point of the market.  This doesn't mean prices will skyrocket upward.  The market still has many months of recovery but the downward spiral has stopped.

Sellers still need to price appropriately with the market.  No matter if it's a "hot" seller's market or a slow buyer's market, sellers still need to price right according to the conditions of the market in order to have a successful sale.

Less inventory.  This is good for sellers as there is less for buyers to choose, and we have seen multiple offer situations with several buyers competing for the same property.

Overall, it's been a long time coming, but the market has improved enough for many sellers to consider their next move.

What does this mean for Buyers?

Buyers need to act - no more fence-sitting.  The luxury of waiting and watching the market are over for buyers.  With less inventory and more buyers entering the market, buyers may find themselves competing for a property.

Pay attention to where interest rates are heading.  Even though interest rates below 6% are considered very low, many buyers over the last five years have enjoyed rates at half that - 3% to 4%.  At some point, interest rates will need to rise.

Be prepared.  Buyers need to be prepared financially to purchase a property.  That means working with a quality local lender and getting pre-approved so that you are ready to make an offer when you find the right house.  Secondly, buyers need to be prepared that a seller may not agree to pay a buyer's closing costs.

Here are the homes that have sold within the last 3 months:

   See all the homes currently listed for sale in 444 West Olympia.

Local statistics compiled by Francine Viola from NWMLS data. Statistics not compiled or published by  NWMLS (Northwest Multiple Listing Service).

Originally posted and written by Francine Viola at www.InTuneRealEstate.com.