Spring 2021 Real Estate Market Update - The Groesbeck Group

Real News S P R I N G

The market

S

2 0 2 1

has started

HIFT

The exodus out of the cities has not only caused a surge of demand for homes in our area, but the buyers that moved here are younger, which is wonderful for the local economy. The Pre-Covid buyer relocating here (except for Military) was typically over 50 and wanted a second home or retirement home with a view, low maintenance yards, open floor plan, main level living, (one level even better) 2200-2400 SF, and a neighborhood.

The post-Covid buyer is younger, many have children at home, want a large, fenced yard, and at least a 3000+ sf home.

Traditional floor plans rather than one large great room are back in vogue since they provide separation for those working and schooling from home. Main level living is not a requirement, and many buyers have specified they want 2 level homes for separation. High-speed internet is essential.

High demand, low inventory, and low-interest rates pushed prices up and up.

INVENTORY

INTEREST RATES

DAYS ON MARKET

Skagit

DAYS ON MARKET

County

69.6% RECORD LOW

PRICE / SF FT

RECORD HIGH

RECORD LOW

MONTHS OF SUPPLY

RECORD LOW

RECORD LOW

MEDIAN PRICE

RECORD HIGH

New records were set throughout Skagit, Island, and San Juan Counties in every area of real estate statistical tracking.

PRICE / SF FT

Skagit County numbers based on sales January through March comparing 2021 to 2020 for the same months.

Skagit, Island

23.7% MONTHS OF SUPPLY

51.7% MEDIAN PRICE

19.3%

& San Juan Counties

The market for Second and Third Quarter of 2021 will be transitional. For example, in one short week, the number of existing homes for sale in Anacortes jumped from just 14 where it had hovered for a month, to 29. Still exceptionally low inventory, but we are likely to see markets change in Skagit, Island, and San Juan Counties.

Sellers that sat out 2020 because of the Pandemic are getting vaccinated and are more comfortable putting their homes on the market increasing inventory. These homes tend to have main level living and these Baby Boomers will be looking for homes with the Pre-Covid features listed above. Will the younger buyers continue to migrate north? Will this year’s discretionary income might be spent on a vacation instead of adding an outside kitchen or play area to a newly purchased home? Are Zoom rooms here to stay? All unknown.

TheGroesbeckGroup.com

360.941.3734

1

Our markets still favor sellers and will for a while, but we will eventually move toward a more balanced market. This is good news for buyers who often lose out on several homes because they can't get an offer accepted, and sometimes waive contingencies that provide them the protection they should have when making a purchase of this importance.

THE IMPACT OF INCREASING INTEREST RATES

For Sellers: Do not miss this sellers’ market! It is not going to last forever! We will bounce around at these high-value levels for a while, but this is the best time to sell any home, especially one that has unique features that have limited appeal. And the good news is the inventory is increasing in most markets so you will most likely have an increasing number of options.

Do you still have a few Spring projects to do before selling your home? Do not forget Compass has an exceptional program where we will front the costs of preparing your home for the market. Everything from cleaning to a new deck to renting a storage facility. No interest is charged.

Call today so you know the market for your home and the trend. Timing is everything!!!

Jean Groesbeck 360.941.3734.

Jingles & Belle's

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Come visit our

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THE GROESBECK GROUP is excited to be able to participate in the Little Free Library Program by providing a book-sharing box at our office at 809 7th St. in downtown Anacortes. This program was designed to encourage a love of reading by providing 24/7 access to books at no cost to anyone.

We have our Free Little Library stuffed with best-selling novels, books on boating, cooking, travel, and self-help books. We do not have many children’s books yet, but once the word gets out, we hope to have more donations. We also have a large assortment of DVDs. If you would like a book, please take one or more. If you have books to donate, please give us a call and we can pick them up or you can drop them off at our office. Thank you to those that donated so that we could have a good assortment for our Grand Opening.

TheGroesbeckGroup.com

360.941.3734

2

BUYING A HOUSE IN 2021 is like playing musical chairs

By Jean Groesbeck

Due to increasing demand for homes for sale, record low inventory levels, and rapidly increasing prices, real estate has been in the headlines almost daily. We receive a lot of questions from our clients, and I thought this would be a good venue to answer the most common questions.

1. Will demand for rural markets wane when people go back to work? The answer to that question is not as definitive. There are always urbanites that like city life and consider an outdoor café outdoor living. But for most, the natural beauty of our area is irresistible, and people that have vacationed here for decades are jumping at the chance to live here. If people no longer must commute to an office daily, they will choose the place that provides the lifestyle they cherish. It is hard to imagine that Seattle will recover physically or culturally soon, or that employees will not request to work from home at least periodically after enjoying increased leisure time rather than spending 2 hours a day in traffic.

2. Will this Spring be like past Springs? Many older homeowners have been afraid to put their homes on the market because of Covid. As homeowners are getting vaccinated, they are more comfortable traveling to look at homes to purchase, as well as letting buyers inside of their homes. We expected to see inventory start to increase as it always does this time of year. The end of tax season often signals a time when homeowners turn their attention to selling their home, but with the tax return extension this year that bump has been postponed.

The summer market might not be the feeding frenzy it is now, but do not expect price softening across the board.

Homes listed for sale will continue to experience a waiting line at the door when the house hits the MLS, but we will gradually shift to fewer offers and more days on the market.

3. Should I sell now? Financially, this is the best time to sell a home in my lifetime. Demand is high, inventory is low, and interest rates are low. The true economic impact of Covid has been artificially postponed. This is close to the peak of the real estate market, and it appears we will bounce around at this level through fall. Proposed changes in Capital Gain Taxes and the threat of the elimination of 1031 tax exchanges are likely to have an impact and influence investors to sell now. The most important question is whether this is the right time for you to sell personally. If you plan to downsize, that process usually takes 6 months to 2 years. It is a great idea to start the process now even if you do not move right away!

3 TheGroesbeckGroup.com

360.941.3734

809 7th St Anacortes, WA 98221 360-899-5027 Info@JeanGroesbeck.com THEGROESBECKGROUP.COM AnacortesRealEstateGuide.com

*If you are currently working with a broker, this is not intended to solicit our business.

Are we in a BUBBLE? We don't think so. This market is nothing like the frenzy before the financial meltdown of the last decade when houses were purchased for speculation with zero down loans and closing costs put on a credit card at 18% interest. Many buyers were underwater the minute they closed on the house. The housing crash was caused because so many people did not have any equity in their homes and were overextended.

Now, stricter lending laws prevent that recurrence from happening.

We invite you to read more about this and other common questions about the current real estate market inside our Spring newsletter.

Jean Groesbeck 360.941.3734

Jean@JeanGroesbeck.com

Taby Perron 956.337.2131

Taby@JeanGroesbeck.com

Eileen Hebert 360.770.7090

iloveanacortes@gmail.com

$360,000

Summer Heaton 360.540.7716

Summer.Heaton@Compass.com