are we entering a new era?

Where were you on Y2K? Do you remember how much fear there was about our computer systems grinding to a halt and the unknown about if and how we’d recover from such a technological disaster? I remember exactly where I was that midnight:  at The Trap Bar at Grand Targhee Ski Resort in the prime of my ski bum days –without a cell phone or a laptop to be even remotely worried about a computer crash.

2025 seems like the start of a new quarter century. With a few economic ups and downs and a global pandemic to mark the first 25 years of the 21st Century, we’re well on our way forward. And consider this - we’re as close to 2050 as we are to Y2K. Kinda crazy, right?

How is the Bainbridge Island housing market looking at the start of this next era?

• New listings in January  2025 were double the amount in January 2024, indicating a thawing of sellers that have been frozen and keeping inventory lower than normal levels.
• Pending sales in January 2025 were double the amount in January  2023 and slight increase over 2024, suggesting a thawing of buyers frozen on the sidelines of the market by interest rates they seem to be accepting as normal.
• January 2025’s 2.4 Months of Supply was much greater than the 0.5 seen in January of 2022 and is exactly what we saw in January 2018 and 2019 – showing a balance between buyers and sellers reminiscent of the normal market we had prior to 2020.
• January 2025’s sales averaged 97.5% of the list price - about the same as January of 2017-2019 – the normal market we had prior to 2020.
• Days on Market, at 59 in January 2025, similar to levels seen in January during the years leading up to 2020.
• While the data is new and only available into part of 2024, I can tell you this about pending sales in January of 2025: a) only 38% had multiple offers, b) 31% had inspection contingencies, c) 70% had financing contingencies and d) none were reported to have escalation addenda. Compared to what was typical from 2020 through 2022, these stats feel like what was normal prior to 2020.

Perhaps most importantly is consumer sentiment: it’s positive, optimistic and active. Lenders are reporting an increase in inquiries. My list of potential buyers is more active than Q1 of 2023/24.

So, is 2025 going to be a new era that is a new normal - that feels just like the typical market we had in the good ol’ days before 2020?

I sure hope so.

Please check out my Bainbridge Market Report below to learn about all of January’s metrics and trends.

Thanks,

Jason