It seems like everything is selling in the Sequim area. Homes haven’t sold like this for 8 years. I suppose it’s a cliche to say that “homes are flying off the shelves,” but it feels like they are.
Everything is Selling in Sequim
Why are homes selling like hot cakes? We are in the midst of a series of simultaneous events, and together they are creating high demand on a short supply. Here’s what’s happening.
Builders Have Not Been Building. For the past 8 years home builders have not been building. Buyers have been motivated to buy an existing home rather than buy a new one, because existing homes have been about 30% less than new homes. But that is changing now. Builders are finding it makes economic sense to build again, and some retirees are choosing to build.
The Inventory Has Decreased. Retirees have been slowly moving to the Sequim area during the entire recession, and they have been buying the best homes in the best areas, and those homes have not been replaced by new homes or additional inventory.
Retirees Are Moving to Sequim in Larger Numbers. Retirees all over the country are making their moves to Sequim. Californians are “escaping California,” as they call it. But escaping the southern states has reached more intense levels as people are not only escaping crime and traffic congestion, they are also leaving high taxes, the high cost of living, intense heat, and now severe drought. One of my buyers from California told me her water bill is $700 a month, and the cost of water is about to go through the roof in the next few years. Even utility bills are extraordinarily high in California compared to Sequim.
Interest Rates About to Increase. Many retirees are expecting mortgage interest rates to increase in the next six months to a year. That is another reason everything is selling now.
Homes Selling at Full Listed Price. Many buyers are finding that as soon as they find the ideal home, it sells before they can get to Sequim and see it. And not only are many homes selling at full listed price, some are selling above listed price. While we aren’t seeing a lot of competitive bidding, we are seeing some, and all of this activity is slowly pressuring prices upward.
Everything is Selling
It’s really no surprise that everything is selling. But with the inventory so low, it is creating some challenges for buyers trying to find their perfect retirement home. I recommend communicating with your Sequim Buyer’s Agent weeks or months in advance of coming to Sequim. This is what my clients are doing, and it’s working very well as we work together to find and buy that home.
Last Updated on September 7, 2019 by Chuck Marunde
