The Phil Leng Team

Sellers Market Truth or Dare

“Seller's Market' Developing As Housing Inventory Hits A 13-Year Low” is the hue and cry from most real estate luminaries.  Read that in Forbes this morning.  Here in King County, Washington, there seems to be an anomaly:


Appears to be more New Listings this week than Listings Sold.  Longitudinally that is relatively consistent here.  Yes, the best of the best (best value, location, condition, location, style, location) sell quickly if not immediately.  Then you have not only what is tracked by Zillow, NAR, Trulia et al but you have a significant faction of “Shadow Inventory” in the form of For Sale By Owner, “Pocket” listings, Limited agency agreements etcetera.  Sellers Market beware.


We tend to subscribe to the adage, “Location, location location” as a group of real estate professionals.  There are two additional considerations:  Price and interest rates.

Price is literally set by the “Market”.  The real estate agent sets a baseline derived from the most current available data, influenced (duly or unduly) by the seller, and the list price is established.  


Currently in our area all new listings are previewed by a multitude of agents and their Moms. Mom provides assurance the agent is in the right business.  And, of course, due to the nature of eagerness amongst involved parties, the wave of previewing is done immediately upon listing. Then the “natural progression” occurs.


When the property is accurately valued offers materialize instantly.  Example:  Tuesday afternoon a property suitable for “Y” clients became available.  Immediately “Y” was notified and agreed to meet at the property right after dinner.  They loved it.  Chose to ruminate together at home, decided to pursue it.  The offer was created and submitted within approximately 12 hours of the listing going public.  It was returned with a thank you note from the listing agent stating the home was “sold subject to inspection” a few hours earlier.  “Y” experienced an extreme of the current market but was now able to relate to the market first-hand rather than via data compendiums.  Apparently the price was right.  


Market rules.


Were the price 20% lower and interest rates around 7% what might be the consumer response? A majority could be off-market due to the rates and requirements.  With the current user-friendly rates hovering around 3.53 on a 30-year-fixed buying power is dramatically different than were it around 7%.  Easy math.

The mortgage rates influence the homeowner’s financial viability as well.  The better the available rate the more cushion they have with any “negative” equity.  More simple math.


With this seemingly adequate supply of inventory why the “Seller’s Market”?  Perhaps pent-up demand popped the cork and released the buyers.  People seeing prices going up and rates vacillating  may perceive a window of opportunity closing.  


What do you think?  This question is out there for everyone.  Respond if you wish.  But please, if you’re “in the market” be sure to fully complete your decision-making process before jumping in. There will, in fact, be another home awaiting your next journey out there.  More next time.

sellers market everybody got an an opinion

The Phil Leng Team


Facebook   Twitter   YouTube   LinkedIn                  






Comment balloon 2 commentsPhil Leng • February 21 2013 05:16PM
Sellers Market Truth or Dare
“Seller's Market' Developing As Housing Inventory Hits A 13-Year Low” is the hue and cry from most real estate luminaries. Read that in Forbes this morning. Here in King County, Washington, there seems to be an anomaly: … more
3 bedrooms renovated house for sale Enumclaw 98022
New Offering in Enumclaw by George Rodriguez, Broker, Keller Williams Realty 3 bedroom 2. 5 baths home for sale Enumclaw 506 Charwila Lane 98022 $240, 000 Fully updated ~ Enumclaw at it’s best! Your Host, George Rodriguez of… more
4 Bedroom 4 Baths Home for Sale Madison Park 98112
4 Bedroom 4 Baths Home for Sale Madison Park 5, 150 Square Feet of Comfort Estates are common - Castles are rare. Come see your personal Castle by the Cactus in Madison Park! A 4 bedroom 4 baths home for sale in… more
Pocket listings and shadow inventory in King County
Pocket Listings and Shadow Inventory The housing market remains under pressure in the near term, with shadow inventory, in particular, posing a risk to the housing recovery, according to a report from DBRS. According to… more
Twas the Night before Christmas
Happy Holidays to all, peace on Earth and Good Will to everyone. God Bless you One and All… Hello. Quick recap: How has this year been for you? JUST you? Not bearing the weight of every tragedy we read… more
Last Days till Christmas
Christmas Countdown! This is the time of year when many children (and adults! ) are eagerly watching the calendar, as though it will move quicker if observed. Like the hour hand on a watch. Yet they (we! ) still do it. Go… more
12 Days of Christmas Day One at the OC C
http://actvra. in/MHd Day One (after dark) of the 12 Days of Christmas At the Overlake Christian Church in Redmond, Washington. Occasionally the second time around sticks to the innards of our minds, so here goes (with a… more
12 Days of Christmas Explained
There is one Christmas Carol that has always baffled me. What in the world do leaping lords, French hens, swimming swans, and especially the partridge who won't come out of the pear tree have to do with Christmas? &… more
Real Estate Market Report Underwater Homes Starting to Float
Real Estate Market Report Northwest UNDERWATER HOME OWNERS GAINING GROUND MARKET PULLS MANY OUT OF NEGATIVE EQUITY The biggest inhibitor of new inventory becoming available may be the negative equity so many… more
The Days After Elections
TUESDAY NOVEMBER 6 2012 was apparently the most energy-expending day of the year because on Wednesday our office was quiet enough to hear a pin drop. On wall-to-wall carpet that’s doing something. On Wednesday even… more