Well we have gone from only 5 active listings last month to 15 currently. Looking at the last 30 days of sales on the Hill, it looks like we are going to have another great spring market due to how quickly new listings coming on the market have gone into escrow. We have had 10 sales in the last 30 days with an average market time of only 8 days. This certainly demonstrates that demand is alive and well for Queen Anne homes. The low inventory is the only factor that is keeping the sales from going even higher. The most popular price ranges for these sales is under $1.5M and especially active is anything listed under $1M. This makes sense of course because there are more buyers in this range than in price ranges over $1.5M. You can look at the data in the attachment if you like.
The national and local economy is very strong which is also underpinning this activity. Interest rates have been declining for the last six weeks or so due to all the money going into safe haven 10 year Treasury bonds. The more money that flows into those bonds, the lower their yields and consequently mortgage rates which stand around 3.5% (for a conforming loan amount for buyers with at least a 760 credit score and sufficient income). As long as tariffs are an issue and the corona virus, I see rates staying at this level. With rents skyrocketing and with mortgage rates this low, more younger buyers are moving into the market place instead of renting. The problem is usually lack of down payment, so I have started to see some banks offering zero down loans again. I do hope we have learned from our mistakes in 2007! Frankly, looking at the big picture, as long as unemployment stays low(3.6%), inflation remains under control(1.6%) and interest rates stay low, business and employment will continue to be profitable and consumers will continue to spend money which accounts for about 67% of our national GDP. As a small example of how optimistic I am about this spring, the home that sold for the most over list price in the last 30 days was 112 West McGraw, listed for $1.15M and selling for $1.345M! This is very positive considering it was in the dead of winter and on a very busy street!
As an side, I want you to know that this year, I will be offering a $2,000 credit towards staging, plus a custom movie and colorized floor plans in addition to professional high resolution photos for any new listings. I am trying to give you as much value as possible to help you sell your home for maximum dollar.
And that’s the way Steve sees it…
Make it a great month!