What is the Housing Market doing this Month?
If you haven’t been paying attention to any of my other market updates, you might be shocked to find out what I’m sharing with you today. Whether you are or not, I’m here to break down what’s happening here in our local real estate market update in March 2023, so you can make the best decision for you and yours!
March 2023 Market Update
Hey, it’s your favorite bearded realtor, Eren Millam with Premiere Property Group. I get asked this question often! Is now a good time to sell in the twin cities of Centralia, WA 98531 & Chehalis, WA 98532 and the surrounding areas? Most people I speak with are STILL, even now, assuming a crash like 2008, but I think that conversation will go by the wayside as more and more people look at the numbers and educate themselves.
Average Sales Price
When you consider the real estate market, you probably think of the average sales price. It’s a fantastic barometer of the health of the market. However, it is not quite the whole story. Below is a graph of the average sales price each month in Lewis County for our March 2023 Market Update. If you’ve known me for any length of time, you’d know that I prefer a rolling average with longer time frames. A rolling average will give you a better picture of the current market trends. This graph makes it look like the market is going up and down monthly and while that’s technically true, it doesn’t give an accurate look of the feel of the market. All that said, you’ll notice the the market jumped up quite a bit this last month. Also, while the prior month indicates a decline, earlier reports showed a slight increase. Either way, the market seems to have reached the end of it’s valley and is grinding it’s way back up. Did the market go down last year? Yes and no. We lost the gains from the beginning of the year to the end of the year. If you want a headline, we’re at the 4th highest average sales price in Lewis County’s history. Not much of a crash if you ask me!
Homes for Sale
The reason I’ve been so bullish (and so correct) about the market is because of the amount of homes for sale on the market. Like much of our economy, it’s all about supply and demand. Housing inventory has been and continues to be historically low. However, we still have MORE buyers than homes on the market. Thankfully, even though we’re trending downward, we’re still above where we were at one year ago today. I do expect, as sellers become educated on the upward market, inventory will start increasing exponentially.
No matter how much I show people the stats, there are always those who still believe the market is headed for a crash. They know it because they can feel it! While emotions are convincing, the stats just don’t back that up. However, the graph below will show you where you’re getting that feeling from. For the past two months, closed sales has been the lowest it has ever been in recorded history. 59 units closed per month is quite the contrast from 130-ish units closed last March. The good news is this number shot up in the spring which market the return of buyers from their fall hibernation. I expect the same this year.
Analyzing the Local Real Estate Market for March 2023
I still hear people thinking there’s a crash coming and that prices are plummeting, but that’s simply not the case. Further, in modern real estate markets, a national recession DOES NOT effect home prices except for the crash in 2008. However, it bears repeating, none of the factors contributing to the crash then are in play now. This is simply supply and demand. While interest rates have slowed buyer activity, those buyers have not left the market, but are waiting for the right house to come along. With the low inventory, it is taking a lot longer. As long as interest rates stabilize or drop, the market should continue to see an increase in pricing. Experts are predicting a 4% increase this year. While I agree, I do believe that number is incredibly conservative. So far this year, we’ve already seen an 2.5% increase and it’s only March!
If you’re thinking of buying or selling your home in the west Lewis County area, contact me today! I’d love to hear from you! Eren Millam – Managing Broker Premiere Property Group, LLC WA License No. 26933
Chehalis, WA 98532 | Centralia, WA 98531 | Adna, WA 98522 | Boistfort, WA 98538 | Napavine, WA 98565 | Onalaska, WA 98570 | Rochester, WA 98579 | Toledo, WA 98591 | Vader, WA 98593 | Winlock, WA 98596
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