Here is the Tumwater Market Update for October 2013 (area 443 on the map below).
Tumwater is a great middle point for Olympia and Lewis County employment centers with easy access to I-5. Tumwater is close to many State and Federal buildings, the Olympia Airport, parks, and shopping centers. Most residents are in the Tumwater School District. Tumwater offers a mix of new construction, condos/townhomes and vintage homes.
|Tumwater (Area 443)||This Year||Last Year||+ / - / =|
|Average Sales Price January—September:||$235,575||$231,272||Stable|
|# of Homes Sold January—September:||280||237||Good!|
|Absorption Rate (how long it takes the market to absorb the inventory):||4.0 months||5.4 months||Balanced
|# of Homes Currently Listed:||125|
|Current Listed Home Price Range:||$125,000 to $629,999|
Average home prices for Tumwater are up slightly - just under 2% - from last year at this time. This area is in line with what Thurston County has experienced. Thurston County overall has seen incremental home sales price increases (2.6% last month). 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. More new construction is being completed after a short time of a new construction slow-down.
Along with the increase in the number of homes sold is a solid absorption rate. Tumwater is right on the cusp of a seller's market. (A balanced market is if all the inventory sold in 4-6 months; a seller's market is anything less than 4 months.) 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. Tumwater has remained steady over the last few years.
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. Buyers will need to stay on top of where interest rates are heading.
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 (112 homes!):
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.