The REAL real estate market report for Olympia, WA
I emphasize the word, “real” because I’m weary of these sensational headlines about the end of the real estate market. And then I have clients who quote these sources and believe them to be true.
The analysis of statistics can always be manipulated to get the intended point across, but I would like to offer a flip side to the media headlines that state the housing market is heading towards a crisis.
Here is a headline from The Seattle Times:
“Prices haven’t fallen this fast since 2011 when the market was still bottoming out after the recession.” And goes on to say, “Seattle’s decline was more than triple the next highest metro area (San Diego, where prices declined 0.8 percent).”
Triple the decline?! As my broker states, the sky isn’t just falling; it has plunged straight through the earth!
Here’s the real deal: The market is easing in price escalation, not falling prices. There’s a difference. Home prices are still up year over year. It is just the rate of increase is moderating. It doesn’t mean that the 11.7% gain owners achieved in 2017 are erased, nor the 9.5% gain in 2016 is gone.
Price escalation moderation for some current sellers may mean doing a price reduction, especially if they priced their home with the 13% annual increase that we were seeing in the spring.
If they priced with more modest increases, they are 1) still seeing a healthy gain and rate of return, and 2) will have willing and eager buyers ready to make an offer.
The chart below is the sales price average for each year in Thurston County.
Don’t believe everything you read. Looking at the bigger picture and especially the historical overview of the market - it will shed light on a balanced perspective.
If you have any questions, let’s chat. If you are thinking of selling in the spring of 2019, call me today so that we can get prepared. And stay tuned for my upcoming 2019 forecast.