It's now spring 2021, and it's looking like we have made it through the worst of the Covid-19 crisis! The housing market in Puget Sound has been absolutely on fire over the last year, with a non-stop parade of bidding wars and record prices throughout the area. What factors led to this scenario in the middle of a global pandemic?
From our own experience, two factors seemed to create the market we have today.
1.Extremely low interest rates. As the pandemic began to shut down major portions of the economy, interest rates dropped in our area. These new, lower rates enticed would-be buyers to enter the market and take advantage of good deals.
2. Change in work routines. Many of our clients over the last year transitioned into a work-from-home role, which meant they no longer needed to live close to their places of work. Some companies have discussed continuing this routine for the foreseeable future, which has freed some workers to live further from the office. As such, homes all across the area became viable options for remote workers, leading to less barriers for buyers.
3. Low low low inventory. The number of homes for sale in 2020 was already quite low in many areas of King, Snohomish, and the influx of buyers pushed the market to its limits. This created an exceptionally competitive market, with a large number of our listings escalating far past the list price.
The market is always uncertain in real estate, so we will be watching for the changes that 2021 brings us! As always, give us a call for any real estate help you may need!
- Ben and Allen