Pierce County Local Market Updates show that home prices for single-family homes in Pierce County are continuously climbing and increasing, but the inventory of homes on the market keeps dwindling and has seriously affected home sales in the first quarter of 2014. The median price for a single-family home in Pierce County in April cooled to $220,000. This shows little to no growth from last year. Real estate experts blame slow April sales on the stubbornly tight inventory of homes and the slow construction of new homes and developments. Many potential sellers who are interested in upgrading to a bigger property are hesitant to sell because they are not sure whether they will be able to find something on the market that they like or will be able to purchase.
Home sales have dropped more than 20 percent for two consecutive quarters as the supply of home listings drifted toward a record low in March 2013. Many realtors and other professionals in the industry expected the rise in prices and the drop in underwater mortgages to result in many new listings and a recovered market, but so far this has not been the case. There are various factors that are contributing to the low sales and slow market in Pierce County. At the end of 2013 15 percent of mortgaged homes were still underwater and homeowners who recently refinanced while interest rates were below 4.25 percent are not likely to sell and buy another home because their payments would end up being almost 30 percent higher due to rising rates and prices.
Even if buyers who want to buy bigger homes with upgrades are financially ready to sell, they are afraid that they will not be able to find a new home in the current Pierce County Real Estate market.
Q1 Market Trends
Q1 Market Trends are showing that inventory is so tight in some areas that houses are selling for as much as $100,000 above listing price. The inflation and the homes selling above market value are instilling fear among potential buyers, real estate experts, homeowners and lenders who are afraid of experiencing another housing bubble. Real estate experts are surprised that lenders are approving so many financing deals that are selling far above list price. They are worried that borrowers who put down a down payment of five percent or less could be put under extreme economic stress should they experience a reduction in work hours or a temporary layoff and this could in turn lead to another recession.
The Pierce County housing market needs to see inventory numbers grow because the current total inventory combined with the current pace of sales shows that there is slightly more than a four month supply of homes available right now. In King County the market is even tighter with a little more than a two-month’s supply of homes available.
Q1 Market Trends also show that average U.S. rates on fixed mortgages rose due to the slow home sales at the beginning of the year. The average rate for a 30-year loan rose to 4.33 percent from 4.27 percent and the average rate for a 15-year mortgage increased to 3.39 percent from 3.33 percent. Mortgage rates have risen almost a full percentage point from last year.
Buying a Home in Pierce County
Homebuyers who are interested in Buying a Home in Pierce County in today’s market need to be prepared for bidding wars and they need to move quickly. Due to the tight inventory current trends show that it is a complete seller’s market right now and buyer’s need to yield to the seller. Many homebuyers in the past quarter have found that they need to put an offer in right away when they find a home they like and they need to be prepared to pay above asking price.
If you are interested in learning more about Pierce County market trends or current listings don’t hesitate to connect with local real estate expert Vickie Jennings. As a certified specialist Vickie is qualified to assist you with all of your real estate needs and her personal mission is to assist and guide buyers and sellers through every aspect of the real estate process. Personal and world-class service is Vickie’s top priority and she always goes above and beyond client expectations in order to meet their needs and successfully achieve their real estate goals in a timely and efficient manner. If you are interested in learning more about Vickie and her work make sure to read current and past Testimonials so you can be assured of Vickie’s professionalism, expertise and knowledge. Connect today to set up a time to meet Vickie and to discuss your real estate options in Pierce County.
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