It’s a new year and a time full of many questions about what’s to come. Many people are asking me what I think is in store for our real estate market. Well, I think the numbers can do most of the talking. We still have a strong seller’s market and I expect we’re going to continue to see many eager buyers throughout this year. But first, let’s take a look at how our market did in the final quarter of 2020.
Highlights from 2020’s Fourth Quarter
Here are some key stats from our fourth quarter:
– The average sale price on Bainbridge Island was up 12.9% year-over-year at $1.315M
– We had 142 closed sales, up 57.8% year-over-year
– Percent of list price received: 101%, up 6.3% year-over-year
If you’re looking to buy, you should know that while we’ve seen a bit of a seasonal slowdown, it’s not as slow as expected due to demand and COVID-19. I’m still seeing many multiple offer situations so it’s best to manage expectations from the start.
2021 Market Forecast
In his final “Monday with Matthew” video last year, Matthew Gardner, Windermere’s Chief Economist, shared his 2021 market forecast and he’s optimistic. He doesn’t expect mortgage rates to rise significantly and he predicts home sales will grow, from 5.55% in 2020 to 5.93% in 2021.
Additionally, you can hear more from Matthew Gardner in the video below as he shares the latest industry data and what it could mean for the year ahead.
Western Washington Market Highlights
To see how our local market compares to our region, here are some important stats from The Western Washington Gardner Report.
WESTERN WASHINGTON HOME SALES
Total Sales: 26.6% increase from Q4/2019, but 8.3% lower than Q3/2020
Homes for Sale: 37.3% lower than Q4/2019, and 31.2% lower than Q3/2020
WESTERN WASHINGTON HOME PRICES
Average: $617,475 (up 17.4% from Q4/2019)
Mortgage rates will stay competitive as the market continues to move toward a price ceiling and potential issues with affordability.
DAYS ON MARKET, WESTERN WASHINGTON
Average: 31 Days (16 days less than Q4 just one year ago)
With historically low inventory, it’s a great time to sell! I’m seeing a lot of buyers out there who are being driven by virtual work and home school interests. They are wanting to purchase homes in our area and the demand for homes is high. Since people feel they no longer need to live close to work, they are looking to live in areas that have safe neighborhoods, reflect their values, and offer plenty of outdoor activities. Bainbridge Island, Poulsbo, and Kingston are of big interest. These areas fit many buyers’ criteria and they are all great launching pads to explore the Kitsap Peninsula. With mortgage rates continuing to be appealing, it really sets up the perfect storm for a buyer.
If you’re thinking of selling or buying, let’s chat. I’m here to assist with your real estate needs.