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Edmonds WA Real Estate Market Conditions January 2013

I often wonder what is best way to describe the real estate market in Edmonds. Most people I found are looking for accurate and useful information that they can use to make decisions on whether or not the buyers sell a property. Most of what I do here in this blog is to give you my impression of what is going on and then supported with the use of graphs or other documentation so that you can rely on the information. The lack of inventory is causing havoc for buyers. Compared to year ago buyers have less than half the number of homes to choose from in the competition for homes has increased by over hundred percent. No matter how you interpret the data it indicates a strong seller’s market. At this time we have the lowest inventory level that we’ve had in the last four years in the price range from $300,000-$500,000. Currently there are 25 properties still for sale, 14 others are under contract in 19 just closed.

What buyers are experiencing is the listing brokers are adding language to the listings that reads we will look at all offers five days from the date of listing. A year ago we would occasionally have a situation where 2 buyers were competing for the same property but now it is not uncommon to have five or more offers for the sellers to choose from. I have seen situations for a home that was listed in this range to sell for in access of $75,000 above the listed price. There is also a confidence factor for the sellers knowing that they can push the price higher than they had been able to in the past. The chart below shows that the sellers are increasing their asking prices and that the gap between the sold in the for sale prices is getting wider.

The best way to use this information is if you are seller you can list at a slightly higher price than a month ago. It word of caution if you try to push it too much you end up with a longer market time and then what happens if it doesn’t sell right away the buyers wonder what’s wrong. If the house has a market time of more than 30 days I would recommend proceeding with caution and tell you can determine why. Buyers need to have all their ducks lined up. It is not always the price that determines which offer the seller chooses. They look at price, amount of down payment, days until closing and also whether or not the offer is subject to an inspection. My recommendation is that if you can have the home pre-inspected prior to make an offer and also talk to your lender and make sure that all the underwriting has already been done for your loan. In that way you can separate yourself from the rest of the buyers and give the seller confidence that the sale will close. If you have any general questions that you would like me to address please e-mail me at blog@northwestrealestate.com. You can also visit my site northwestrealestate.com and is the contact us form.