Market Update 9.1.21

Real Estate

Sep 1

Real estate graphs show markets in motion - up one season, down the next. The median Days on Market (DOM) graph is no exception.

In February of 2020, the median days on market in Lake Chelan was 85. Seven months later, it dropped to 9. These swings are typical given seasonal influences.

But this year, the graph has flat-lined since February. The flat line tells the story of 2021 in Lake Chelan: limited inventory and sustained demand.

Previous 2021 market updates have discussed these forces which are not new for 2021. What is new this year (and the flat line tells the story) is that the market has reached the bottom of its inventory well. Homes are selling as soon as they hit the market.

In 2020 and previous years, some residual inventory remained to allow variability in DOM. But in 2021, this reserve is tapped out. Buyers are hungry for homes and when a well-priced home hits the market it is snapped up.

Luckily for buyers, new listings have continued to fill the well. August reported a healthy 28 new home listings. And anecdotally, the market has softened a bit since early summer. Multiple offers are not 100% assured in every sale.

Diving into the MLS data, we see 43 homes for sale as of 9.1.21. But if the new construction (not-yet-built) homes at the Lookout and Wapato Point are pulled from this list, the total drops to 30.

These homes range in list price from $274,900 (for a 5th wheel on a Vista Del Lago lot in Manson) to a $4M waterfront home in Manson. Affordability continues to be a challenge with seven homes available under $500,000.

All signs indicate a strong fall season in the Lake Chelan Market. 26 homes changed status to pending in August. This is a strong, seasonally expected number.

Buyers will continue to benefit from a good real estate agent connected to other agents in the local market. These connections help a Buyer pounce when a home hits the MLS.

Sellers should focus on the fundamentals of pricing, presentation, and promotion. Sellers should also consider if they really need to sell. The Lake Chelan market is arguably returning better than most other asset classes.