Market Insights: September 2020
The September real estate market in the King County area had a positive, steady month. JayMarc personally closed five homes in the Bellevue and Mercer Island areas. As individuals continue to work from home, we are seeing an increase in presale interest for early to mid 2021. With a presale, you can personalize aspects of the home. Trends that have increased are dedicated offices, learning spaces and home gyms. Open floor concepts for main living are still in high demand, but it is important to have a few spaces in the home where you can close the door for privacy or relaxation.
In the construction industry, we are seeing a large increase in lumber prices since Covid-19 hit back in March. Especially if you are looking to build a custom home, keep in mind that lumber prices are constantly changing. It is important to have a conversation with your home builder to set expectations and so you are not hit with a huge payment you were not expecting. We are optimistic that prices will begin to level back out by the end of the year. "Lumber prices increased 14.9% in August, marking the largest four-month gain since such data was first recorded in 1949 and the second-largest gain since seasonally adjusted data became available in 1975." (Read more: NAHB)
"As a result of low mortgage rates that have stayed under three percent since July, the housing market has seen a strong, upward trajectory during a very uncertain time. We're seeing potential home buyers who now have more purchasing power and may current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity including high home prices, low inventory and lender capacity." (Read More: Freddie Mac)