John L. Scott Real Estate Chairman and CEO J. Lennox Scott stated the Puget Sound housing market is immersed in a power surge of sales, causing a red hot real estate market, in all price ranges.
He reported that housing in the more affordable price ranges in many areas is experiencing multiple offers and rising sale prices because of very low housing inventories and a surge of homebuyers coming into the market (affordable=homes priced at or below the median housing price).
These factors, combined with continued low interest rates, are also making it more affordable than ever for sellers to price jump into more expensive homes.
John L. Scott agents say theyre seeing price jumping in all price ranges because of the opportunities that current market conditions are affording buyers and sellers.
This is a unique time in real estate, Scott said. We have historically low interest rates combined with improving economic conditions, low housing inventory, and large numbers of buyers.
As a result, there are more buyers than available housing in many areas, causing an extremely competitive market.
Scott added that the ongoing fear of rising interest rates is driving even more buyers into the market, adding to the seasonal surge of buyers that is already typical for this time of year.
Scott concluded by saying that the activity in the more affordable housing market is stimulating a surge of sales up the price points which can be felt all the way into the high-end housing market.
Nationwide housing boom attributed to boomers
Is it boomers behind the ‘sonic boom’ in the residential real estate market? The Center for Media Research reports that the entry of the baby boom generation into the home-buying age groups accounted for 11 million homeowners, or a 65 percent increase in the nations homeowners since 1983.
The Census Bureau reports that homebuilders broke ground on an estimated 1.85 million housing units and sales of existing homes rose to a record 6.1 million units according to the National Association of Realtors.
Baby boomers view their home as both an oasis and a sound investment, said Paul Purcell, president of braddock+purcell, a residential real estate advocacy in New York. With interest rates at historic lows, and the stock market viewed more cautiously by boomers who are closer to their retirement years, residential real estate purchases provide a significantly safer haven for boomers.
braddock+purcell has seen an upswing in boomers seeking to purchase primary, secondary and even third and fourth homes.
Paul Purcell, formerly president of Douglas Elliman, one of the world’ leading residential real estate agencies, is an authority on residential real estate trends and practices.