Myself along with other Realtors and certainly most buyers out in the marketplace, continue to experience a lack of available homes for sale.

Our Thurston Co Inventory Shortage continues to keep our current real estate market very unbalanced.

As you can imagine, when supplies are low, and demand is high, a seller will benefit in receiving top dollar for their home and quite possibly have multiple offers for their home the first week on the market.

So, what will the solution be to this inventory shortage?

What I learned from our recession years (2009-2012) was, housing is not going anywhere. Shelter is as old as time.

As these home prices continue to soar, we will eventually find a ceiling to real estate values.

One thing that I see that will begin to slow things down will be the interest rates continuing to rise.
As the interest rates continue to rise, buyers purchasing power begins to shrink.

If a buyer can no longer afford a $300,000 home because of an increase in the interest rate, you’ll see homes listed at $300,000 begin to sit on the market longer, as this begins to happen, agents will begin to urge their sellers to reduce their asking price.

A buyer certainly won’t be excited about less buying power because of the higher interest rates, but they will start to see prices start to fall because sellers are now beginning to drop their prices.

Buyers will then start taking back a little more control of values with the mind set of,
“I won’t pay that price, let’s wait until the prices come down even further”.

I would also like to see more new homes being built.
Currently, we only have 119 new homes for sale throughout Thurston County (Yelm, Rainier, Tenino and Rochester included) approximately 22%.
Throughout the 90’s continuing until approximately 2009, new construction was a very important percentage (28-36%) of our real estate market.
When new construction is plentiful, homeowners in all price ranges will entertain selling their home to get in to a new home.

As I stated earlier, “housing is not going anywhere”.

I’ll continue to monitor this current real estate market and keep you all informed.

As always; If you come across friends or family that have real estate needs, I would be happy to serve them with the same care you’ve come to expect from me.

 

It’s a Great Life !

 

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