Friday, June 4, 2021

State to Fully Open: Good for Inventory?

Part of me feels like the ultra tight inventory is at least partly due to a 'fear' of COVID and the decision by Governor Inslee to reopen the state this month may lead to some relaxation of anxiety that some sellers may have about strangers walking through their house during the listing period. But further exasperating the problem is a serious lack of building materials that is slowing the new construction slowdown and creating rising prices for new homes. This puts additional pressure on resale homes. Any seller thinking about making a move, right now the stars are aligned for sellers to dictate their terms.

Many sellers are concerned about "where will I go?" With inventory tight sellers can make rent back arrangements or other arrangements to soften the pressure about finding the replacement home. Once the building materials crisis ends, new homes will once again compete with resale and the window may close a bit on sellers.

So far this spring listings have been slow to materialize but they are picking up and I hope the reopening will bring out the remaining sellers that might be waiting for the pandemic to wane. 

Interest rates remain competitive and buyers can still get a fair bit of house for the money available to a median income family in Clark County. 

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