Wow, It’s August 2022 already. Seems like it was just yesterday that we were beginning to navigate the new world of COVID-19 and the market frenzy that ushered in. As we discussed in July’s update, we’ve been seeing some changes in the market. For most, this uncertainty is undiscovered opportunity in the market. In the four markets we serve, we’re seeing very similar trajectories in the market.
This month we will outline the trends we are seeing in each of our markets, and the opportunities those may present for you. In the gallery below you’ll see the year-to-date graphs detailing the market trend. No surprise that we’ve continued along the trajectory that was set earlier this year. Spokane experienced our low point for active listings in February of this year and has steadily climbed each month since. Today, there are nearly double the active listings available compared to this winter.
Now increased inventory in the Summer is not a big shock in Spokane. We experience seasonality in our market, we see lower inventory in Quarters One and Four and a bulk of our inventory in Quarters two and three.
We’d like to point out the pending ratio. As we discussed last month, the pending ratio compares active listings to listings under contract at any given time. We’ve seen the pending ratio dropping since it’s high-point this year in March. Time will tell, but the change was less severe between July and August than previous months. We may be seeing a plateau. For those of us watching the market for the past decade, we’ll notice that our market statistics are beginning to look like the years 2017-2019.
What does this mean for us?
In a market that is experiencing increasing inventory, increasing price drops and a lower pending ratio, Home Buyers and sellers are benefitted with more options when buying or selling. With nearly twice as many homes on the market, and nearly half as many under contract home buyers are afforded more selection. Whereas a short year ago, a homebuyer may have had to rush to earn the opportunity just to buy a home.
With more price drops, there’s more room for negotiations. Negotiations are part of a healthy market and many are necessary to unlock affordability in today’s market.
Advice for Buyers
Get your lending in check. Find out what your options are. Talk to your agent about ways to make the home buying process more affordable and ways you can negotiate with the seller to lower your monthly payment or reduce your expenses of ownership. Need an agent? Call us: (509) 990-7653.
Advice for Sellers
It’s a price war and a beauty pageant. Get your home in the best shape you can. Everyone is paying more for just about everything, you want to decrease the perceived cost of ownership to the new buyer by eliminating maintenance items that could be costly in the future. Consider including some affordability options in your offering. Curious about what those might be? Call us: (509) 990-7653. We’d be happy to discuss.