When a buyer loses “their” home to another buyer, the impact psychologically is significant. I want to share a quick story on this exact topic.
A great friend of mine from college reached out to me this morning in regards to his home search. He is in his late 20’s, a commercial real estate broker and was just recently married. For the last 2 years he and his wife have been looking for a home in the Seattle area. Off and on, he would send me a listing or two for my review and to give feedback. In most cases, the interest in the home wore off. In two years, they really hadn’t found what they were looking for. They never had any urgency in regards to buying because they simply didn’t find the right place.
Over the weekend they found a place that they REALLY wanted. Just before they could submit their offer the home went under contract (In just 4 days). I have to say that his e-mail didn’t surprise me. I have seen this more and more in the last 60 days. I firmly believe that our market is recovering. I won’t get into the arguement about pricing because it is far to difficult for anyone to predict. What I can tell you is, that situations like these are happening all of the city. On most of my own listings, when brokers call to show, many of them have been asking; “Is this unit still available? Do you have any offers? In a very simple way, this is a sign to me that the market is healing.
Seattle still has some recovering to do. With that being said, the strength of the housing market recovers much like the equity markets do. If you have been paying attention at all this week, you have seen that the DOW JONES INDUSTRIAL AVERAGE is at 3 year highs. The real estate markets are cyclical in the same way. Before we know it, you will hear many more stories like my college friend. When activity picks up and buyers lose homes to competition, the housing market always heads in a direction of recovery. Simple economics always applies. Supply and Demand rules all type of trade; especially in housing.
Rents are going to rise and as inventory continues to fall prices will climb along with it.