Real estate experts say low inventory will mean the hottest housing market in years. Experts also call for an increase in bidding wars on homes.
GIG HARBOR, Wash. — Real estate experts say the 2020 housing market is going to heat up to levels that haven’t been seen since 2017.
According to Northwest Multiple Listing Service, the number of homes on the market has dropped dramatically: 54% in Thurston County, 41.4% in King County, and 40% in Pierce County.
That means the homes that are on the market are expected to sell faster and go for more.
“We have record low inventory, so when houses do come on the market, they’re gone,” said Windermere real estate agent Cindy Marchand. “We normally have them sold within a week to 10 days. Sometimes faster.”
Windermere agent Nick Dahl said the crunch has triggered a heightened interest in new construction, like Gig Harbor’s Cushman Pointe development, which features 51 lots.
“We’ve been moving a lot faster than we actually anticipated,” said Dahl. “We’ve sold 19 homes already, and I think we’ve beat most of our goals in terms of selling houses per month.”
Come spring and summer, the hot market will likely mean an uptick in bidding wars.
Redfin, the Seattle-based real estate brokerage site, expects about 25% of offers to face bidding wars in 2020 compared to only 10% last year.
Along with low inventory, the factors driving the crunch include a strong job market, low-interest rates, and an influx of out-of-state buyers.
Marchand said current market forecasts show the market may not cool off until 2021.