It seems like I just drafted a report for Spring 2021 and time is flying by. Real estate pressure last year was intense and non-stop, but I have to say it felt like a simpler time. So much has happened to our market since then. While we were trending heavily in 2020 and 2021 with higher home values, lower inventory and endless competitive bidding over homes, we thought that perhaps the pressure would ease and we could all take a breather. That was not to be. More on that below.
In personal news Meadow was the number one broker in Manzanita, Neahkahnie and Nehalem once again. A great achievement in performance and consistency for over a decade. She makes us proud. Our daughter Cosma decided to join the Home + Sea Team this summer selling her first homes with our co-worker Leisha Mizzee-Riggert in Nehalem and Manzanita. You may have met Cosma in our office. She was logging some serious hours. It is great to have her working in the family business.
We’ve graphed the sales results below to make this a quick read. The number of homes on the market was down 26% from last year with only 44 coming to market and sales were down 26% from the prior year with 45 homes sold. Low inventory. The list to sales ratio was 109% in Manzanita. Competitive bidding was incredible. Two homes went for 140% of list. Days on the market were lower yet again, 36% lower, to an average of 57 days from listing to close. Our market is under immense pressure.
It’s not just Manzanita that is experiencing and incredible crush of demand. There isn’t a coastal community in our MLS that isn’t under pressure. While we don’t track the numbers north of Astoria or south of Tillamook, we can report that every community in between has seen record sale to list price ratios.
We’re seeing homes sell from list price to well over list in every community on the coast. Appraisers are seeing the value too. We have all read about the housing shortage nationally and our residents are feeling it locally.
Cash sales ratios are at a new record and we are seeing a lot of HELOC buyers, cash in hand, buying into Manzanita then selling primary homes elsewhere. In other words, more people are relocating to our area as permanent residents. This is a new trend but it is significant in our small market and will change our community.
In Manzanita for the 2021 season we saw a reduced number of homes come to market on the back of a record low inventory during 2020. With that, prices spiked for a record increase in sold property values. We’re up 55% from last year in MZ. Last year’s numbers (which were also a record) pale in comparison. Manzanita is the place to be on the Oregon Coast.
The market average increase for North Coast communities in 2020 was 20%. That seemed incredible. In the last year the average sales price up and down our coast increased another 28%. Neahkahnie saw an increase of 50% and Nehalem was up 29%. The price increases are unprecedented.
It’s a seller’s market. Demand is high. Prices are at an absolute record high. Call us if you want to speak in detail about home sales.