This is a somewhat anecdotal post but I can back it up with some sound data so here I go. It seems that this market has gotten quite hot at or near the bottom of the price range. $150k-200k homes are selling fast and often with multiple offers. For those of you fortunate enough to have a little larger budget the buyer's market has not died just yet. There is a more inventory and fewer buyers and that seems to have created a more buyer-seller neutrality based market. Right about $275,000 things begin to loosen up. Buyers can kick a few tires and be patient as the try to find the perfect home at the best price. Let there be no mistake a well priced home at $300k will sell fast, but a home that is pushing the price ceiling may sit around for a while.
If you are a buyer, you have to try and balance the price and threat of higher interest rates as you decide your path. As a seller you have the same potential problem. If a seller chooses to hold out for a higher price, they may get it, or they may lose out all together if interest rates are uncooperative.
The primary idea is that those of you looking at spending $275k or more can probably find a great house at a pretty good value. This is good news.
According to local MLS data, the last 90 days in Clark County, Washington had 447 active units between $275k and $375k and only 189 active units in the bread and butter $150k-$200k price range. Inventory is very tight at 1.9 months for entry level but a more healthy and neutral 4 months for the high price range. This is an opportunity for people sitting on a three bedroom 1300 foot ranch to get top dollar and then step up to the dream 2200 foot, four bedroom house that is still priced relatively cheap.
interest rates are still very low. We had a spike over the last six weeks but favorable news coming from the fed yesterday has settled things down. The Freddie Mac Washington State average rate is currently 4.21%. Most people looking for a low cost loan are going to pay closer to 4.75%. any rate under 6% is historically a good rate so we remain well below that.
get out there and kick some tires. you might find your dream house and it might be cheaper than you think.