2021 Housing Market Outlook for Stanwood WA and Camano Island WA
2020 was a very unique year with everything that has transpired through our elections and the pandemic. The pandemic slightly slowed the Washington state housing market during the spring of 2020 but the market quickly rebounded and was on fire to close out the year.
What can you expect in the housing market for 2021 and how can you best navigate this market as a buyer or as a seller? Here are some trends and tips that may help:
#1 TREND: LOW INVENTORY
Inventory is exceptionally low in our area making it a “seller’s market.” As an example currently, there are just 13 houses that are listed as active on Camano Island and only 26 in the Stanwood area. There are still far more buyers than sellers creating this demand and with low-interest rates, you can expect 2021 to remain a seller’s market.
Home Buyer Tips:
- Get pre-approved. When a house that interests you hits the market it will likely sell very quickly. You won’t be able to compete unless you’re pre-approved and ready to go. Find a responsive lender that gets things done and has a great reputation for serving their clients.
- Focus on why you want something and not what you want. You may not find the perfect house but can you make it a perfect home over time? You may have to sacrifice a few of those things you’d like to have but don’t have to have. Be willing to expand your search parameters.
- Be realistic about your situation. If a home is at the top of your price range to start it may be out of your reach if there are multiple offers. Focus on homes that you can comfortably afford even if the price increases.
- Don’t get desperate! Desperation leads to mistakes and regrets.
Home Seller Tips:
- In this market, you are in a great position as a seller but don’t get too greedy. The majority of the houses that are still sitting on the market in our area are homes that were over-priced from the start. Just because it is a seller’s market doesn’t mean you can be unrealistic.
- Have a plan! You may be a seller but that usually means your going to end up being a buyer after your home has sold! Try to have a plan for your next home before you sell!
TREND: LOW-INTEREST RATES
Interest Rates are very low right now. You may have an idea of what you think you can afford only to talk to a lender to find that you can afford a lot more than you had thought. Perhaps you aren’t sure you want to sell your home and your current rate is significantly higher than what you could get through a refinance. I know people who have converted from 30-year loans to 15-year loans and have had their payments lowered or remain the same.
TREND: RISING HOUSE PRICES
Home prices continue to rise. On Camano Island, home prices have risen 18% since last year. In Stanwood, they’ve risen nearly 7%. With inventory continuing to be low, you can expect housing prices to continue to rise. Economists are not predicting any crash in the housing market.
Buying or selling a home in today’s real estate market is incredibly difficult and something to be consulted with a professional real estate agent. Not only is it one of the most important decisions most will ever make, but it is oftentimes one of the largest financially.
Call today with any questions you might have.
Kelly Mauck, Real Estate Agent