Buy the Dip!

The median price of single-family homes experienced a small dip as we moved from July to August. King County was down -2%, Snohomish County was down -2.14%, and my hometown of Lake Forest Park (LFP) was down -2.2%. This has the look of the seasonal cycle and I anticipate prices to drop slowly throughout the winter before the market takes flight again in 2022. As prices slowly fall, it’s important to remember the big picture, King County prices are up 14.3% year-over-year, Snohomish County is up 22.9%, and LFP is up 18.5%.

Inventory peaked in July with a combined total of 2,780 homes for sale in King and Snohomish Counties. In August, the number of homes for sale dropped -22.5% in King County, -13.9% in Snohomish County, and -18% in LFP. With inventory dropping, shouldn’t that increase competition and increase price?!

A popular phrase being thrown around the industry is “buyer fatigue”. The first half of 2021 was pretty insane – it was almost impossible to get an offer accepted. I remember one house, we made an offer on and ended up competing with 34 other offers... and the final price was way over the appraised value. That kind of market was soul crushing for faint of heart. As you could imagine, many buyers were burnt out on the bidding wars or simply priced out of the market. As prices flatten out this fall and winter, I expect those fatigued buyers to jump back the buyers pool and they may even find a deal or two.

Not every home is falling in price. We saw the average sales price go 5% over the listing price in August. If home is presented well and priced correctly then it will still attract multiple offers, even in the off season.

Free advice time: If you’re selling this fall, take the extra time to get your home in the best shape possible. Painting and landscaping are often the most cost-effective investments prior to listing. If you’re buying, look for a home that has been on the market for 8+ days and buy the dip. This will give you some buying power and we can start the negotiations. If you’re making an offer for a property that is less than 8 days on market then grab yourself a pumpkin-spiced-latte and be prepared to escalate your offer with very few, if any, contingencies.

We found some great buyers for my Greenlake townhouse listing. It's under contract for a excellent price and my sellers are happy to put their focus on wedding planning!

Ashton and I were able to take Felix to his first Mariners game yesterday afternoon to watch the M's shutout the Astros! He met the Mariner Moose, clapped along with the crowd, and enjoyed dipping his hands in my hot dog mustard.
Thanks for reading, I hope you enjoyed it and gain some value from these e-mails. Feedback is always welcome. I appreciate your support and hope you have a great week!