SW WA Market Report

Clark County, Washington Home Values – August 2020

This Clark County Home Values Report provides Southwest Washington sellers, buyers and investors a monthly update on the current real estate market conditions. If this is your first visit, welcome! Educating my clients and visitors is one of the ways I enjoy giving back to our community.

It’s valuable if you are planning, thinking about selling, making a purchase, or investing in local real estate to build wealth. As you peruse this blog, there will be resources either on my site, or on sites I trust. I will arm you with as much information as I can provide so you will enjoy lasting homeowner benefits. I go beyond opening the front door, to guide you through purchase and sales strategies, and sound investment practices.

RMLS

RMLS is the Portland Metro Area’s Multiple Listing Service. It is an invaluable resource to agents, tracking the home listing, pending, and sold data. It covers the urban, suburban, and rural areas of Southwest Washington and near the Portland, Oregon Border. Look for a duel licensed agent, such as yours truly, to conduct business in either state if you haven’t firmly decided on an area.

As we see in the graph below, RMLS data reflects a significant difference in active residential listings. We compare the total average active listings in August 2020 in light of COVID 19 with the past two years. The average number of listings is 1929 between August 2018 and August 2019. The number of active listings to date is 1038 up to the month of August 2020. So, if we compare the past average with the current average we notice a significant drop in available properties.

Use the graph below to compare the 1.) amount of inventory on the market, or the number of active listings, with the 2.) number of pending (in contract), 3.) and closed or sold transactions. The comparison will give you a good sense of the competitive nature of the market. In the pending graph below you will see by May the real estate market caught up to past performance. The market increased abruptly thereafter and agents found themselves running out of inventory to sell.

Smart investors know that crisis sales means bargains! This is not the case with the current market conditions. It is not just investors who are scoping out the deals. There are a slew of first time home buyers viewing this time as an opportunity to get into a home before the prices are out of reach.

The viral impact on Clark County meant listings to plummeted. It caused active listings to drop by 900+- active listings from the same period in past years. There are many other variables creating the HOT REAL ESTATE MARKET during the COVID 19 crisis.

COVID 19 Precautions and Protocol

I want to take the time to inform my clients about the strict COVID 19 protocols intended to keep seller’s homes and buyers safe as they visit prospective properties to purchase. I provide plenty of personal and home sanitizers, Personal Protective Equipment (PPE) and place them right at the front door for each of my listings with instructions for their visit. We ask that they use shoe coverings, masks and gloves when they visit the home.

The number of individuals that can view your property at each showing is limited to two. Showing times are limited to 15 minute increments. Open houses are not currently allowed. Instead, I canvas the neighborhood in person, or via social media to invite your neighbors interested in making a purchase.

New Listings

In the graph above, sellers opt for the stability of their home facing many unknowns surrounding the virus. The COVID 19 situation posed a problem with safety. The right protocols in place, seller confidence seems restored and sellers took advantage of the favorable market.

Seller Return on Investment (ROI)

In good condition, we see average price property range roughly $400k – $450k. Generally, sellers receive asking price or more if the home is PRICED ACCURATELY. Comparable property sales are a key indicator of price for the neighborhood. The current trend is zero to minimal seller concessions. It is not unusual in the current market for a seller to receive 5 to 15 offers for a property. In a normalized market, the home wouldn’t sell without the seller being forced to make some sort of concessions.

We all understand basic economics supply and demand theory. If there is a inventory surplus, sellers suffer with dramatic decreases in offers, and must subsequently reduce their list price. THAT is NOT the case at the moment! If a home is fairly well maintained in a decent location, it should sell like hot cakes. Market conditions couldn’t get any better. It’s the PERFECT time to sell your home!

Buyer Benefits

Buyers on the other hand are finding themselves competing with other buyers for very few available homes. We are seeing multiple offers, but not just one or two, more like from a handful up to a dozen, or so for desirable properties. Don’t be disheartened, buyers! You must have patience to navigate this market trend. This is where great brokers show their stuff!

We see an increase in the price of median and average priced homes. The median priced homes are driving the market upward due to the shrinking inventory of available homes in the $390,000 price range. Any buyers who are thinking of making a purchase, NOW is the time! Get in before the market continues it’s current upward trajectory.

Cooperating interest rates of 2.9% – 3.5%, tax benefits, and first time home buyer programs make today the perfect time to become a homeowner. Use the calculator on the “First Time Home Buyer” page. Click the buyer tab to locate. It will help you determine if a home purchase makes sense for you. I am here to answer any of your questions, or help with any concerns about a home purchase or ownership.

Home Value Comparisons 2019-2020

Barring additional unforeseen circumstances, the numbers show we have likely already beat last year’s numbers for closed sales. The median sale price is $397,100, which means it will no longer be easy to find a home under $400K. This is excellent for homeowners! Buyers need to get their ducks in a row quick if they want to get into a home. It will be a challenge for buyers qualified for a median priced home. Market conditions are moving very quickly, and I dread disappointing buyers, or sellers who realize they missed their mark!

Clark County Real Estate Increases 2010 – 2020

Take a look at the graph below and note the stability of real estate in the long run. Owning real estate is one of the safest investments over time because of it’s limited quantity. There is an ever increasing population which ensures future demand. Smart investors know owning real estate can be a great tax break. This why some buyers are merely looking for a tax shelter. It is an enduring asset, so long as it is maintained, it can provide excellent retirement benefits.

A great broker is NOT just a skilled negotiator, but a perceptive individual with a keen sense of strategy. It is up to you to find the right broker! The right agent will help you present the your best offer in a way that a seller can’t resist. Skilled writers give you a better chance at winning the bidding war. My gloves are off! Are you ready to claim your new home? Send me an email to get started with my Portland Metro – Guerrilla Home Buyer’s Strategy Meeting! (Coming Soon – Via Zoom) Send your information below and I will contact you with the invitation.

Let’s Get Started!

Thank you for your time. I will respond within 24 hours.

Oh, by the way . . . I am never too busy for your questions, your business, or your referrals!

Thank you in advance for your confidence, and recommendations to your family and friends. 

I hope this post was constructive. I appreciate your feedback. Please send your thoughts, or ideas via email, or let me know how the information helped you. I find it useful to keep me on track.