What is happening in the Real Estate market on North Whidbey (Oak Harbor and Coupeville)? What is the economic forecast for 2020 and what will it mean for the real estate market?
The graphics below show statistics for the Whidbey Island market as of Dec 1, 2019.
We continue to see modest annual growth in real estate prices, and a slight increase in the length of time homes remain on the market. After many years in a “sellers’ market” we’re slowly moving toward a balanced market. At this time of year there is very little inventory out there for buyers to browse, so if you’re thinking about selling you have a great opportunity right now.
For a bigger picture of what is expected in the 2020 economy and housing market I invite you to watch this 2 minute video featuring Windermere economist Matthew Gardner.
Gardner expects a slight recession in 2020 or 2021, but that it should not affect the housing market. He still expects nearly 4% growth in housing prices in 2020. Mortgage rates are expected to move up just slightly in 2020 but remain right around 4%.
Of course no one can know for certain what the future holds, and these “big picture stats” are not nearly as helpful as a personal consultation to determine the value of real estate you currently own, or whether 2020 is the right time for you to stop renting and purchase a home. I’d love to set up a time to discuss your personal situation with you, and I welcome your call.
Windermere Real Estate Whidbey Island
For those interested in the market trends here on North Whidbey (Oak Harbor WA), I took a look at the statistics for homes priced under $500K on North Whidbey and created this 3 minute video. These stats came out May 1 and refer back to April 2019.
- Mortgage rates went down the last 2 months and are under 4.25% on average.
- Average sales price for these homes has gone down by 5% since last April.
- There is still not a lot of inventory, and homes are taking 40 days to get under contract on average (a small step up from last month).
If you were trying to sell your home in the North Whidbey real estate market in late Summer of 2017, there was a difference between how “hot” the market was for homes in the $200-$300K range and those in the $300-$450K range. As the video below explains, homes in the lower price range ($200-$300K) were moving very quickly and sellers were receiving almost 100% of what they listed their homes for.
At the same time, homes in the higher price bracket ($300-$450K) had a noticeable slowdown, with the average for cumulative days on the market (the amount of days between when the home was listed and when a purchase and sale agreement was signed by all parties) doubled in August from around 30 all the way up to 66 days. Along with this slowdown in getting offers signed around, the average price agreed upon dipped from 98% to 96% of the original asking price. For a home originally listed at $400,000, that means on average it would have sold for $384,00 in August.
It is important to note that prices have not dropped in either price range, but there was a noticeable plateau of the prices for homes in the higher price bracket. The reduction in the percentage of the original asking price actually received by sellers in the higher price bracket (from 98% to 96%) reflects the optimism by sellers that prices would continue increasing at the rates they had in May, June, and July. They priced their homes accordingly, but buyers were hesitant to purchase at those prices, bringing in offers that were a lower percentage of the asking price.
Buyers continue to benefit from historically low interest rates, so it remains a good time to buy as well as a good time to sell in North Whidbey Real Estate.