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Today I’m going to be giving you a real estate market update for the Puget Sound area. I have a few concerns about the market and I will be addressing them here.
You need to understand that at this time last year, the average sale price in Puget sound was $521,000. This year it is now $615,000. That is 14% appreciation in one year! That’s almost unheard of. That’s a change of $236 per sq. ft. and now we’re closer to $270.
These multiple offer situations are driving home prices through the roof. When cash buyers come in, they don’t need to get an appraisal done on the home, so the appraisers have no chance to value the home. This is causing home values to rise unchecked. Foreign investors are also bringing in a lot of money to the area, and these people often have deep pockets.
Appraisals keep checks and balances on the real estate market, so how are we going to handle this problem?
If you’re a buyer, please understand that this is normal. We’re seeing levels rise to where they were at the peak of the market, so you’re not getting ripped off. However, be wary when you’re fighting 15 other people for a home and the price escalates rapidly. What I suggest you do is look at homes that have been on the market for 2-3 weeks. There will be less competition from buyers and these homes will be more affordable. Just make sure that they’re in good condition.
If you have any further questions, please don’t hesitate to contact me!