Our intuition tells us that when home inventory is up, prices decrease. However, according to a recent article from the Puget Sound Business Journal (PSBJ) that is not currently the case in the Seattle area. What is causing prices to continue to climb even with an influx of inventory? As with everything else in the housing market, we can look at the bigger picture to make sense of this situation.
Although local buyers have more homes to choose from, they are competing against more buyers who are also taking advantage of the large selection. The article reports, “There’s demand among buyers for houses of all prices, though it’s highest for entry-level homes.” This is not surprising considering tech salaries go farther in the Seattle area than other tech hubs, which attracts more employees searching for homes. Additionally, even though the number of new listings in August increased 14.5 percent, that still reflects a decrease from August 2015. The PSBJ also cautions that experts don’t expect price hikes to keep moderating because they believe the number of new listings will drop significantly between November and February.
What can home buyers take away from this news?
If you are in the market to purchase a new home, your best opportunity will be within 60 days. Let me know how I can help make the search easier to help you find your dream home.
Find the full article on the Puget Sound Business Journal.