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August 2022 Real Estate Market Update
The summer continues to heat up, and patient buyers are being rewarded as market shifts create a new dynamic between buyers and sellers. After years of intense competition between buyers for the most desirable listings, increasing inventory and slower price appreciation across the region have caused a pivot, with sellers competing more strongly against each other than they have in previous years.
The Return to a Balanced Housing Market
While this may cause uncertainty in some sellers, the rise in active inventory is an indication that we are returning to a more balanced housing market as a whole. Sellers can still be very successful with their home sales, as long as they price their homes accurately and understand that they may not see the exorbitant offers that were typical a few months ago. This is a pragmatic approach, and we should see some relief in the “buyer gridlock” that had kept homeowners in place who wanted to sell and move but simply had no place to go.
Inventory, Affordability, & Median Sale Prices
Even with the increased inventory across the Puget Sound region, we may start 2023 with low supply, high demand, and multiple offer situations. Prices are coming down largely as a result of the previous rapid price appreciation and rising interest rates. However, Puget Sound’s underlying lack of supply and huge demand has not changed, although rates have improved. Seattle’s median price for single-family homes rose 6.4% year-over-year, from $896,500 to $954,500. That’s down slightly from the million-dollar median the city hit in April, and should help create a more inviting market for prospective buyers. The median price for condos is currently a more affordable $537,000, with 2.5 months of inventory.
King County as a whole is experiencing much the same phenomenon, with the median sale price for single-family homes decreasing from $938,225 in June to $890,000 last month. However, that’s still up 2.1% from $871,000 in July 2021. Single-family homes on the Eastside currently have the most inventory in the tri-county area, with 2.5 months’ supply. The median price for single-family homes has dropped to $1,420,000, down from $1,500,000 in June, but up 6.7% year-over-year. It’s important to note that this decrease in the median price is likely not due entirely to price depreciation, but from the fact that lower-priced homes made up a larger percentage of the overall sales in the area, thus lowering the median sold price. Real estate experts believe that the area continues to model a price correction based on the 2018 market, suggesting the median closed sales price will bottom out in about two months’ time around $1,300,000 or higher.
Snohomish continues to remain a more affordable area for buyers, with a median sold price for single-family homes of $770,000. Although that’s down from June, it is up a full 10% year-over-year, from $700,000 in July 2021. The area also has more active inventory—nearly two months’ supply. This, combined with the lower median price for condos of $500,000, makes it an appealing option for buyers with more constrained budgets.
Conclusion
The increase in active inventory across the region is not an indication of slowing demand. The majority of homes are selling in under two weeks, and prices continue to appreciate year-over-year. Builders are working diligently to meet demand, but until more projects come online, buyers and sellers will have to navigate these new market dynamics together.
If you have questions about these changes in the market or about real estate in general, please reach out to the Kari Haas Real Estate Team, we are happy to help!
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
July 2022 Real Estate Market Update
Cooler temperatures and a cooler regional real estate market have been this summer’s hallmark thus far. After months of blazing hot sales and a breakneck pace, buyers are finally seeing inventory levels accelerate and price gains slow. With inspection and financing contingencies once again becoming the norm, the region may, at last, be shifting toward a more balanced market.
Area home prices were down across the board last month. The median sold price for King County single-family homes dropped to $938,225, slightly lower than May’s near million-dollar price ($998,888). Year-over-year, however, King County prices were still up by 9%, despite the higher 1.5 months of available inventory.
Seattle mirrored the county’s trend, with the median price dropping from $1,025,500 in May to an even $1,000,000 in June. This price was still up 12% year-over-year, indicating continued demand for housing in the city.
Real estate experts have pointed out that areas that saw the greatest appreciation earlier this year will likely see a more significant dip in prices as the market rebalances. The Eastside market bore out this theory in June as the median sold price for single-family homes was $1,500,000 — down almost $100k from May’s median price of $1,590,000. That said, last month’s Eastside median sold prices were still up over June 2021, increasing 10% year-over-year in the residential market and 12% in the condo market. And with two months’ supply of homes currently listed, Eastside buyers have significantly more options to choose from than they would have had earlier in the year.
Snohomish County — long a refuge for buyers seeking more bang for their buck — followed a similar trend. The median sold price for single-family homes dropped to a more attainable $799,950, down from May but still up 11% year-over-year. Snohomish County condo prices dipped in June as well, with the median sold price of $500,000 down 9% from May and up a meager 1.6% from June of last year.
While these recent price dips may cause concern for some sellers, local real estate experts reiterate that this is a necessary step toward a more balanced market. “The increase in listings has started to slow the rapid pace of price gains that we’ve experienced,” said Matthew Gardner, Windermere’s Chief Economist. “This is a good thing, not a cause for concern.”
Other factors influencing the summer real estate market are higher mortgage rates, higher post-pandemic rates of travel, and typical seasonal buyer patterns. With graduations occurring and school years finishing up, many potential buyers are scratching their itch for travel and family time, putting off their home search until a little later in the year.
For sellers looking to make the most of the current market, flexibility is key. Pricing their home correctly from the get-go and being willing to negotiate with buyers on terms can still result in a top-of-market sale, albeit one in which multiple offers are less expected.
If you have questions about real estate opportunities in the current market, please reach out for additional insights and analysis. The Kari Haas Real Estate Team is here for you! “Let’s Sell Your House & Find Your Home!”
Eastside
King County
Seattle
Snohomish County
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com
June 2022 Real Estate Market Update
Windermere just released the market statistics from May, so let’s review what’s happening in the real estate market.
The tides of our local real estate market may, at last, be shifting, as buyers find relief in increasing inventory and the frenetic pace of sales slows noticeably. At the end of May, inventory across the 26 counties served by the Northwest MLS had increased by 59%, with 8,798 active listings in the database, compared to 5,533 active listings just a year ago. While this shift may cause concern from some who anticipate a drop in the market, Windermere’s Chief Economist Matthew Gardner had this to say: “What’s more likely to occur is that the additional supply will lead us toward a more balanced market, which after years of such lopsided conditions, is much needed.”
Are Price Hikes Slowing?
While inventory has increased, the meteoric price hikes seen in this first part of 2022 – including again in May’s closed sales – are expected to slow dramatically in the next half of the year. Seattle saw a historic first in April, with the median sold price for a single-family home topping $1 million for the first time. May home sales continued that trend, with the median sold price inching up to $1,025,500, which is a 12% increase from $919,000 in May 2021. King County as a whole mirrored this trend, with the median price of single-family homes reaching $998,888 in May, up from $995,000 in April, and up 14.8% from last May’s median price of $869,975.
Eastside & Snohomish Markets Cool
May closings reveal that the Eastside and Snohomish County didn’t follow this same pattern, instead experiencing a much-needed cooling of prices. On the Eastside, the median sold price for single-family homes fell from $1,722,500 in April to $1,590,000 in May. While last month’s median price is the lowest since January of this year, it was still up 22% year-over-year. The Eastside saw an increase in the percentage of homes that had a price change before selling, hitting 10% in May — double that of April. This is likely due to Eastside sellers needing to adjust their price expectations. While a majority of listings in the area — about 66% — still sold over list price last month, a full month of inventory and a 403% increase in active inventory on the Eastside from February to May means that buyers have more choice and agency than they’ve had in some time. Homes are still selling, but multiple offers are far fewer, and sellers are more likely than before to accept an offer written with contingencies.
Snohomish County also saw a shift in May, likely due to the combination of increasing inventory running headfirst into decreasing buyer budgets thanks to rising mortgage rates. With .85 months of inventory, prices reflected this, with the median sold price for single-family homes falling slightly to $815,000 last month, down from $839,298 in April. However, most homes sold for over list price and quite quickly, averaging less than two weeks on the market. It’s worth noting that these statistics largely reflect home sales that went under contract in prior months when the competition was at its fiercest. The median sold price for Snohomish County condos dropped just slightly to $545,000 last month, down from $550,000 in April. With only two weeks of inventory on hand, the county’s condo market is likely to remain competitive for a while.
A Chance for Buyers
Falling prices in the Puget Sound region may have caused concern for some, but most analysts see this as a necessary and long-overdue price correction. Prices for single-family homes (excluding condos) in King County rose from $775,000 in January to a whopping $995,000 in April, a change of $220,000 in only four months, or 28.4%. Last month, the Eastside saw prices decrease by only 8%, and this was likely only because prices had previously risen so astronomically in the area. Neighborhoods that saw the highest appreciation will likely experience a sharper correction, but this may serve to help some previously unlucky buyers re-enter the market and finally find success.
If you have questions about pricing trends in your neighborhood, or how to make the most of your purchase or sale, please reach out!
Seattle
Eastside
VIEW FULL EASTSIDE REPORT HERE
King County
VIEW FULL KING COUNTY REPORT HERE
Snohomish County
VIEW FULL SNOHOMISH COUNTY REPORT HERE
This post originally appeared on GetTheWReport.com
May 2022 Real Estate Market Update
After a long stint of suppressed housing inventory across our region, buyers may, at last, have more options as the supply of available homes ticks up ahead of the summer market. The month-over-month increase in inventory has been as much as 50% in some areas, offering renewed opportunities for those buyers who are not dissuaded by high home prices and rising mortgage rates.
The Eastside appears to have experienced the most dramatic inventory growth, with .79 months of available single-family homes last month compared to .46 in March. Seattle increased slightly to .59 months of inventory, while Snohomish also had a notable increase up to .67 months of inventory compared to .46 in March.
The increase in supply is likely occurring because rising home prices and mortgage rates have put a slight damper on sales in the area. Last month, the median sold price for a single-family home in Seattle surpassed $1 million for the first time—landing at a historic $1,019,950. This is up 16.6% year-over-year from $875,000 in April 2021. The median price for single-family homes on the Eastside last month was an eye-watering $1,722,500, with 80% of homes selling over list price. Although inventory has increased in the area, Eastside homes are still selling quickly, with 96% of listings selling in under two weeks. King County as a whole also saw prices increase, with the median sold price for single-family homes reaching $995,000, up from $830,000 a year ago.
Snohomish County home prices have kept pace with the market, with the median sold price for a single-family home reaching $839,298. That’s an increase of 24.3% year-over-year from $675,000 in April 2021. This is likely due to increased demand from buyers who can’t compete in the intense Seattle and Eastside market, seeking more bang for their buck in the relatively more affordable Snohomish County market.
Affordability issues have also trickled into the condominium market, as some prospective homebuyers divert from the single-family market to condos. Eastside condo prices have increased 29.7% year-over-year to $674,444 last month from $520,000 in April 2021. In Snohomish County, the median sold price for condos rose to $550,000 year-over-year from $432,250 last year. That’s an increase of 27.2%.
Despite rising home prices and heftier mortgage rates, many buyers are still eager to take advantage of the financial benefits of homeownership. According to Windermere’s Chief Economist, Matthew Gardner, “Owning real estate is a hedge against rising inflation. Homeowners with a fixed-rate mortgage will always have the same monthly payment, even as other costs rise.”
If you have questions about how to find the opportunities presented by today’s market, please don’t hesitate to contact me.
Seattle
Eastside
King County
Snohomish County
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com
April 2022 Real Estate Market Update
The spring market continues its frenzied pace, with soaring prices and stiff competition testing the resolve of buyers. Despite these obstacles and rising mortgage rates, inventory remains low across King County, as pending sales keep pace with new listings, demonstrating a strong demand from buyers. Continue reading for the April 2022 real estate market update.
Buyer Demand
This demand has factored into the way sellers are approaching the market. Windermere’s Chief Economist Matthew Gardner notes that median listing prices continue to rise, saying “this suggests that sellers remain quite bullish when it comes to pricing their homes.”
This was certainly true in March on the Eastside, where the median closed sale price for single-family homes was $1,700,000, an all-time high. This was up 26% year-over-year, and slightly up from February, when the median was $1,697,500. In Seattle, the median price for single-family homes achieved an all-time high of $970,000, up 18% year-over-year. Snohomish County continues to feel the impact of this voracious demand, with a median closed sale price of $1,298,000 for single-family homes — that’s an increase of 38.1% year-over-year.
Selling Over List Price
Not only are asking prices increasing across the region, but many homes are selling for well over the list price. On the Eastside, a staggering 85% of closed sales in March 2022 sold for more than the list price. Overall, that’s down from an all-time record last month of 87% but tied for the second-highest month ever with April 2021. Of the Eastside homes that sold over asking last month, the median difference was 21% over asking, and they spent an average of just 4 days on the market.
Seattle is experiencing a similar pattern, with 71% of the closed sales in March going over the list price. This is high for Seattle; in March and April of 2018, 63% and 68% of listings closed over asking, respectively. Last month, the Seattle listings that sold over the list price sold for a median of 15% over the list price, and were on the market for 5 days.
In Snohomish County, homes that sold over list price went for a median of 21% over the asking price.
With these conditions, many buyers are looking to condos as a more affordable way to break into the market. Consequently, condo prices have also seen a year-over-year increase. In King County, condos remain relatively more affordable, with a median price of $540,000 in March 2022. That’s up from $470,000 in March 2021, a 14.9% increase. Snohomish County has seen a more dramatic increase, as the median condo price in March 2022 was $555,000 — up 33.1% year-over-year, from $417,000 in March 2021.
Expectations
Matthew Gardner expects mortgage rates to continue trending higher in the coming months, but so far he says there’s nothing to be too concerned about, as the interest rates have not yet caused sales to taper off. Savvy sellers can still easily benefit from the opportunities presented by this market, and although rates are higher, buyers can finance their home purchase with rates still far lower than the historical norm.
If you’re looking for knowledgeable advice as you consider when might be your best time to enter the market, whether as a buyer or a seller, please give me a call or text. We are here to give you professional insight to help you make the best decisions possible.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com
February 2022 Real Estate Market Update
What’s Happening in the Market
In this February 2022 real estate market update, we see that the local market in January looked a bit like the calm before the storm. Home prices took a pause from the frantic surges of last year, but if the sales we’ve seen in the last few weeks are any indication, the market looks like it’s heating up again. Inventory inched up in January but remains far short of buyer demand. Homes are selling fast, and for well over the asking price. Expect this spring, traditionally the busiest season of the year for home sales, to be hotter than ever.
Reason for Concern?
Concerns about future mortgage interest hikes appear to have added fuel to an already overheated market, further depleting already meager inventory. The number of homes for sale was lower than any January on record, according to Matthew Gardner, Windermere’s chief economist. There were 59% fewer homes on the market in King County than at the same time last year. Snohomish County’s inventory was down 35%. Based on current demand, it would take less than two weeks to sell all the properties on the market in both counties. Buyers competing for scant inventory snapped up available homes quickly. In King County, 72% of the homes sold in January were on the market less than two weeks. On the Eastside, 81% of homes sold in less than two weeks, as did 61% of homes in Seattle, and 76% of homes in Snohomish County.
Home Price Trends
Homes prices continued to trend upward compared to the same time last year. In January, the median price of a single-family home in King County rose 7% year-over-year to $775,000. Home prices on the Eastside jumped 32% over a year ago to $1,515,000, virtually unchanged from the all-time high of $1,529,500 set in December. With 71% of homes on the Eastside selling for over asking price, the market is expected to stay very competitive. Prices in Seattle have been fairly level for the past few months. The January median home price of $790,000 is flat compared to a year ago. In Snohomish County, the $715,000 median home price was up 19% over the prior year.
While January’s statistics (which reflect sales that closed in December) hinted that the market may be easing off, the housing activity we’re seeing today indicates that buyers are stepping on the gas. Expect even more competition for homes in the coming months.
Expectations for the Future
Despite the pandemic and remote work, large companies continue to hire new workers and invest in large office projects in the area. Matthew Gardner weighed in on how he sees that affecting the housing market for this February 2022 real estate update. “One of the biggest questions for 2022 is how the market will be further impacted by the work-from-home paradigm given that many companies have postponed their long-term WFH plans. This is likely holding back sellers during a time when we desperately need additional inventory, as well as buyers who are concerned about rising mortgage rates.” Gardner expects more sellers will list their homes and more buyers will start their searches once they know how often they need to commute to work, which may result in a busier spring market than expected.
If your plans for 2022 include buying or selling a house, we’re here to help. Get in touch and we can get started.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
Check back next month for a new local market update.
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This post originally appeared on GetTheWReport.com.
December 2021 Real Estate Market Update
What’s Happening in the Market
While the housing market typically slows down in the winter, fewer buyers are taking a break this year. High demand and scant inventory still favor sellers, who continue to see multiple offers. In one bright spot for buyers, home prices – while up from over a year ago – appear to be evening out in most of the region. Potential home sellers who’ve been sitting on the fence may want to consider taking a leap into the market now.
November Results
With the exception of the Eastside, Puget Sound median home prices were essentially flat in November compared to the previous month. However, prices increased by double-digits in most areas from last year. In King County, the median single-family home price rose 12% from last November to $820,000. Home prices in Seattle continue to level off, with the median price of $850,000 up just 4% from a year earlier. The Eastside maintained its strong appreciation, with prices soaring 35% from a year ago to a new record. The median home price there of $1,428,000 topped the previous all-time high price of $1,365,000 set in October. Prices in Snohomish County jumped as well, rising 23% to $695,000.
Despite the traditional winter slowdown, the supply of homes for sale just isn’t budging. Snohomish County has just three weeks of inventory. In King County it would take just over a week to sell through all the homes for sale. Inventory is at an all-time low on the Eastside, where there are only 100 single-family homes for sale in the entire area, which stretches from Issaquah to Woodinville. Homes there are snapped up quickly, with 85% of properties selling within two weeks. With demand at a peak, the inventory crunch is expected to continue. Developers are particularly bullish on the Eastside, where plans are in the works for numerous projects, including a new condo tower in Bellevue, a $500 million transit-oriented development, and over 7,500 new apartment units that are being built in Redmond.
2022 Predictions
What’s ahead for 2022? Matthew Gardner, Chief Economist at Windermere, expects the market to continue to be strong, but believes the pace of appreciation will slow significantly from this year. “I predict single family prices will increase by around 8% in King and Snohomish counties. Affordability issues and modestly rising interest rates will take some of the steam out of the market in 2022.”
Do your New Year’s plans include buying or selling a home? Your broker can keep you up to date on the latest trends and help you create a plan to meet your goals. Let us know how we can help.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
Check back next month for a new local market update.
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This post originally appeared on GetTheWReport.com.
November 2021 Real Estate Market Update
What’s Happening in the Market
As we head towards the end of the year, the housing market traditionally slows down. As a matter of fact, this year’s activity was even slower than normal, with record-low inventory and correspondingly fewer sales. What’s happening in the market now? At this point, prices aren’t appreciating at the pace they were in the spring, but they continue up as compared to a year ago. While potential home sellers usually wait until after the holiday season to list their homes, those who opt to put their home on the market now can count on strong buyer interest.
With the number of buyers far outstripping supply, inventory is at historic lows. King County as a whole has less than two weeks of inventory. The supply of homes is especially strained on the Eastside where there was just one week of inventory at the end of October – 61% fewer homes were on the market than the same time last year. Snohomish County is starved for supply as well, with just over one week of inventory. The entire county had just 492 single-family homes for sale at the end of October.
Strong buyer demand has kept prices steady, and most areas saw home prices increase from a year ago but remain fairly flat over the past few months. The median price of a single-family home in King County rose 11% from twelve months ago, increasing from $745,000 to $824,270. Within the county, the Eastside experienced the greatest gain. Home prices soared 30% to $1,365,000, inching above the previous all-time high of $1,364,000 set in June of this year. Prices in Seattle registered the smallest gain at 6%, up from $800,000 a year ago to $850,000.
Homes that sold in the North, Southeast, and Southwest parts of the county saw price gains ranging from 16% to 20%. Buyers may find some relief with condominiums. The median price of a condo in King County was $459,970, an increase of 3% from the prior year. Tight inventory kept prices strong in Snohomish County. The median price of a single-family home jumped 20% in October to $695,000. Like most of King County, home prices in Snohomish County have been fairly flat over the past few months.
Have home prices plateaued? Will strong buyer demand continue? After all, the real estate market can change quickly, so whether you’re looking to buy or sell, your broker can provide you with the most current data so you can make the best decision for your situation. Let us know how we can help.
EASTSIDE
Local Market Update
KING COUNTY
Local Market Update
SEATTLE
Local Market Update
SNOHOMISH COUNTY
Local Market Update
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This post originally appeared on GetTheWReport.com.
The Gardner Report – Quarter 3
The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.
REGIONAL ECONOMIC OVERVIEW
The emergence of the of COVID-19 Delta variant had a palpable impact on the region’s economy, which, naturally, impacted job recovery. Employment levels in Western Washington had been picking up steam in the spring but started to slow quite dramatically over the summer. To date, the region has recovered more than 201,000 of the jobs that were lost due to the pandemic, but we appear to be in a bit of a holding pattern. That said, the ending of enhanced unemployment benefits has led many business owners to see more applicants for open positions, so I am hopeful the numbers will pick back up as we move into the winter months. The most recent data (August) shows the region’s unemployment rate at a respectable 5%, but we still have a way to go before we reach the pre-pandemic low of 3.7%. On a county level, the lowest unemployment rate was in Kitsap County (4.4%) and the highest was in Grays Harbor County (6.6%). There are still many hurdles in front of us, but I believe we will continue to add jobs and reach full employment recovery by mid-2022.
WESTERN WASHINGTON HOME SALES
❱ Sales in the third quarter rose 6.4% year over year, with a total of 27,280 homes sold. The increase matched what we saw in the second quarter of this year.
❱ I was pleased to see sales growth continue. This rise was supported by a 28.4% increase in the number of homes for sale. Listings rose the most in Grays Harbor (+62.6%), Lewis (+53.6%), and Skagit (+52.0%) counties.
❱ Sales activity was mixed. Nine counties saw year-over-year growth, but sales slowed in six counties. That said, sales were up in every county other than King and San Juan compared to the second quarter of 2021.
❱ The ratio of pending sales (demand) to active listings (supply) showed pending sales outpacing listings by a factor of 4.6. Even with the increase in the number of new listings, the market is far from balanced.
WESTERN WASHINGTON HOME PRICES
❱ Home prices rose 18.9% compared to a year ago, with an average sale price of $726,168—another all-time record.
❱ When compared to the same period a year ago, price growth was strongest in Clallam, San Juan, and Jefferson counties, but all markets saw prices rise more than 12% from a year ago.
❱ Average sale prices pulled back 1.1% compared to the second quarter of this year. Given the massive increase in value over the past few years, it is not at all surprising. The key indicator has been a softening in list prices and that naturally translates to slower price growth. This is nothing to be worried about. It simply suggests that the market may finally be heading back to some sort of balance.
❱ Relative to the second quarter of this year, all counties except San Juan (-0.1%), Island (-0.5%), and Whatcom (-0.5%) saw higher sale prices.
DAYS ON MARKET
❱ It took an average of 17 days for a home to sell in the third quarter. This was 19 fewer days than in the same quarter of 2020, and 1 fewer day than in the second quarter of this year.
❱ Mirroring the second quarter, Snohomish, Kitsap, Thurston, and Pierce counties were the tightest markets in Western Washington, with homes taking an average of 9 days to sell in Snohomish County and 11 days in the other three counties. The greatest reduction in market time compared to a year ago was in San Juan County where it took 102 fewer days for homes to sell.
❱ All counties contained in this report saw the average time on market drop from the same period a year ago, but eight counties saw market time rise from the second quarter; however, the increases were minimal.
❱ Even with inventory levels increasing in most markets, the region’s housing market remains remarkably tight. That said, I do see some of the heat dissipating and I am hopeful that if inventory levels continue rising, we will start a slow move back toward a balanced market.
CONCLUSIONS
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
Even given the speedbump that hit the region’s economy with the emergence of the Delta variant, the housing market remains remarkably resilient. Demand from buyers continues to be very strong, and modestly increasing inventory levels appear to have—at least for the time being—reduced some of the fever from the market. Mortgage rates remain very favorable, and my current forecast is for them to stay in the low- to mid-3% range until next summer. Rising inventory levels have led price growth to slow and days on market to start increasing, which may be a sign that the market is retreating from a prolonged period of exuberance.
As we move through the balance of the year, I believe demand will remain solid, but we will continue to see price growth soften as more listings compete for the buyers that are out there. That is not to say price growth will turn negative; rather it suggests that we are slowly moving back toward a more balanced market. That said, the market certainly still favors home sellers. As such, I am leaving the needle in the same position as the second quarter. I may move it a little in the direction of buyers next quarter if the current trend continues through the winter months.
ABOUT MATTHEW GARDNER
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
This post originally appeared on the Windermere.com Blog.
October 2021 Local Real Estate Market Update
What’s Happening in the Market
We had a rise in listings in September, but that didn’t stop the inventory from being tight. With a large buyer demand, shortage of homes for sale, and low interest rates, the prices remained higher than the last year. However, as we head into the holiday season, we tend to see a slow down in the market. This seems to be what’s been happening over the past few months, the home prices seem to be leveling out. We expect the price appreciation to continue through the rest of the year.
Home prices in most of the region continued their pattern from the past few months – up from a year ago but falling slightly from the prior month. The median price of a single-family home in King County in September was $825,600, an increase of 10% from last year, down from the $850,000 median in August. Seattle’s median price rose 4% year-over-year to $850,000, a slight drop from $875,000 last month. The Eastside was the exception to the trend of cooling prices. How hot is the market? 70% of homes sold over the list price, and 86% sold in under two weeks. The median home price on the Eastside soared 26% from a year ago to $1,310,000, basically flat from $1,300,000 in August. Snohomish County’s median price jumped 18% from a year ago to $675,000, down from $694,900 the prior month.
Some of the greatest price increases occurred in areas that have traditionally been more affordable. According to Matthew Gardner, chief economist at Windermere Real Estate, “We continue to see a migration of buyers to suburban markets which has resulted in significant year-over-year price growth in areas such as Shoreline, Auburn, Skyway, Woodinville, and Burien. It’s likely that buyers are drawn to these areas because housing is more affordable than in the urban neighborhoods closer to Seattle and Bellevue.”
More homes were available at the end of September than in August, but low inventory continues to pose challenges for buyers. In King County there were 40% fewer homes on the market than the same time last year. The condo market, which was negatively impacted by COVID-19, has come roaring back as buyers look for more affordable alternatives to single-family homes. Condo sales were up 20% over last year, and inventory is being rapidly depleted. There were 50% fewer condo listings at the end of September than the year prior. In Snohomish County, the tight supply of homes continues. At the end of September there were just 672 single-family homes for sale in the entire county, a supply of just two weeks.
Real estate markets can vary significantly from area to area. Whether you’re looking to buy or sell, your broker can provide you with the most current data for your specific area so you can make the best informed decision. Let us know how we can help.
EASTSIDE
Local Market Update
KING COUNTY
Local Market Update
SEATTLE
Local Market Update
SNOHOMISH COUNTY
Local Market Update
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This post originally appeared on GetTheWReport.com.
