You've probably heard it from everyone…the market is getting better. While it's nice to hear, it is even better to SEE and UNDERSTAND. I'm going to show you a few graphs that show you exactly WHY the market is better and why you may reconsider jumping in to buy or sell.
Please keep in mind that all of the data I will be highlighting below is for Federal Way area codes 98023 and 98003.
1. The chart below is the number of homes "For Sale" vs. "Sold" for the last 5 years. As you can see, from 2009-2011 to , during any given month, there were more than 300 homes on the market. However, only around 50 sold each month. Imagine how hard it would be to sell your home if you had a 16% chance each month….and that is if your house is priced right. To entice buyers, homes had to sell for cheep.
2. Chart #2 is the same as above, only focusing on the last three years. What we see here is a cycle of low inventory and a better chance to sell your home. Clearly, during the winder months, there are less "For Sale" and therefore "Less Pending". In Nov-Feb, sellers had a 40% chance of selling their home. During the summer months, an average of roughly 45%.
3. With the exact same data from chart #2, we can see the "average sold price per square foot" for homes in area codes 98023 and 98003. From Jan 2012 to Jan 2014, we've seen an increase in Price Per SqFt of 23.4%. From Dec 2013 to Dec 2013, there was an 8.3% increase.
In conclusion, the Federal Way housing market is alive and kicking. It's growing rapidly each month. With inventory in short supply, sellers are getting top dollar for their home – no matter what time of year it is. If you are considering selling or buying, now is a good time. For those who are buying, values will continue to rise and so will your payment.
If you have questions on this or other area codes, please let me know and I would be happy to pull similar statistics!