Market Update - 04.13.23
After a cold and gray March in Chelan, we wondered if spring would ever arrive. However, we finally celebrate the sun's arrival!
As we move into 2023, the big question for Lake Chelan's real estate market is the pace of sales. Will homes sell at the same rate as 2022 and maintain their prices, or will the market slow even more and cause prices to soften?
Unfortunately, the first quarter of the year suggests the latter. In February, there were no recorded pending sales, which is the first time in ten years. Although this does not set a trend for the year, it does raise eyebrows. Furthermore, while there were 27 homes for sale in March, this is still low compared to pre-Covid spring norms.
Thus, we can expect continued low inventory and potentially a softening in demand. Buyers can enjoy more breathing room and fewer competing offer scenarios, allowing for more room for negotiation. However, sellers should not expect to sell their homes above market value and should not be alarmed if they sell for a bit less than a neighboring 2022 sale.
In conclusion, Lake Chelan's real estate market has shifted, and it's essential to adjust expectations accordingly. As Dorothy says to Toto in the Wizard of Oz, "I've got a feeling we're not in Kansas anymore," and the same is true for the real estate market. Welcome to Oz.
The Data
Pending Sales (10 and 3 Year time frames): February 2023 recorded the first month in the Lake Chelan market with zero pending residential home sales. Is this a sign of a slowdown to come this year? Too soon to tell.
