Hello Clients and friends! It's 2023 and the year is off to a great start. Despite what the news headlines say about the housing market, right now it's actually pretty stable. I wanted to give you some real-time information about what I'm seeing right now in our local real estate market.
I have 3 sets of buyers all targeting new construction. Buyer A made an offer on a new construction Jay Marc home in the 2.5 range. Buyer B made an offer on a Murray Franklin new construction home in Snoqualmie Ridge in the 1.8 range. Buyer C is targeting Issaquah's Panorama neighborhood at the top of Talus in the 2.5m range.
Buyer A's offer was declined by the builder. Despite a very long DOM (days on market) on their model home, Jay Marc is very confident in their current pricing & quality product. Jay Marc has had an incredible run for the past decade, is highly profitable & likely flush with cash. They can afford to have a handful of homes and are not over-leveraged therefore, they're not panicking and looking to "get rid" of their new construction homes.
Buyer B is targeting Murray Franklins, Cascade Point neighborhood at Snoqualmie Ridge. Since Murray Franklin is a PNW staple and has built homes for decades, they are also extremely solvent and stable as a company. We put in a fairly reasonable offer considering market conditions - but they held very firmly on their pricing.
Buyer C is taking a close look at Panorama. Panorama is also not in a huge rush to do huge price reductions to offload homes. Many of the homes have views, all are turn-key & there doesn't seem to be any huge "deals" to be had over there either.
Summary & thoughts:
Many builders learned their lesson during the financial crisis & great recession that started in 2008 and lasted until 2012. They've positioned themselves very well so they don't have to panic sell once the market inevitably turns more in the buyer's favor. There's very little new construction in our area, Bellevue, Kirkland, Issaquah, Snoqulamie Ridge, North Bend & buyers LOVE fresh new homes. Some builders are offering a credit that will help a buyer buy down their rate or soften closing costs but that's about it. For the high-end, bigger builders, the longer days on market are a minor inconvenience.
I'm excited to see how the 2023 real estate market plays out! What do you think?