The Sequim real estate market is largely dependent on the California real estate market. If Californians cannot sell their homes, Sequim looses a substantial percentage of its buyers. This means that California’s market for selling homes (i.e. inventory, turnover, pricing, and trends) is a leading indicator for the Sequim real estate market.
The good news is that California’s market has shown a marked improvement recently, and that will translate to selling more homes in Sequim and Port Angeles in the months ahead. The Wall Street Journal reported that, “California’s inventory of unsold, previously owned homes shrank to a five-year low in December, in a sign that the state may be coming out of its worst housing slump in decades. The supply of unsold single-family homes dropped to 3.8 months from 5.6 months a year ago and 16.6 months in January 2008 . . . In Northern California’s Santa Clara County, where inventory has dropped to 50 days from 243 a year ago Amanda Garcia said she and her father Luis Garcia finally gave up a nine-month search for a home last month, after they kept losing out on homes priced in the highly competitive sub-$500,000 market. ‘It’s more like an auction nowadays,’ said Ms. Garcia.” [California Housing Shows Revival Sign, Wall Street Journal, January 23, 2010]
My expectation is that we will see some buying activity in March, April and May of 2010. Homeowners who plan to sell would be well advised to prepare their home for sale and get it on the market now, because those buyers are searching the market already. Of course, successfully marketing a home these days is not simply a matter of throwing an advertisement in a newspaper, listing it in the MLS, or posting it somewhere on the Internet. There is much more to connecting with California buyers. For now, if you are planning to sell, be encouraged. Our most important leading indicator is sending a strong message from California.
Tip for Buyers: You know what this means for buyers. It means you will have more competition from other buyers this spring and summer, and that means if you are able to make your move sooner rather than later, you will undoubtedly have more options and be able to negotiate a better price. This isn’t rocket science, but it is basic economics–supply and demand. In a small market like Sequim’s, supply and demand are major factors determining price and quantity.
Last Updated on July 27, 2012 by Chuck Marunde