When COVID-19 entered the Seattle-area, experts were unsure the role it would play on our local real estate market. Homeowners and potential buyers alike were hesitant at the beginning of the pandemic, but as we close out September all signs point to a fast-moving fall. Mortgage rates continue to hover at historic lows, and buyers are on the move to make offers swiftly as inventory tightens, with many situations resulting in multiple and competing offers.
As of August 2020, Bainbridge Island has just under one month of inventory. That’s 60 percent less than what was available on the island a year ago. You’ll notice in the graph above (Months of Inventory Based on Closed Sales) that inventory lingered around 2.2 months when COVID-19 hit, as mortgage rates continued to decrease, inventory dwindled and dropped a full month (1.2 months) in June 2020. For the majority of the year, Bainbridge Island has leaned towards a seller’s market.
It seems that sellers were quick to put their home on the market between March and May, but buyers remained wary (based on the number of homes sold, compared to the number of homes for sale). Once June came, confidence grew and supply and demand were head to head.
The summer season tends to be one of the busiest times of the year in real estate. Realogics Sotheby’s International Realty broke company sales records for July and August, despite the current climate of COVID-19. As we say goodbye to summer, the fall season shows promising signs of a steady and upbeat real estate market.
