January 2021 Housing Market Update (NWMLS Press Release)

“Extraordinary market conditions” sustain strong home sales around Washington state during holidays

Here are the bullet points from the newest press release from the Northwest Multiple Listing Service, which provides housing market data for most of Western Washington:

• “insatiable buyer demand” is keeping inventory scarce as house hunters try to outmaneuver and outbid each other
• double digit price increases in new listings, pending sales, closed sales, and prices
• “As more people are working from home, they are also purchasing properties further afield from Seattle”
• Chelan, Clallam, Grays Harbor, Kittitas, and Mason counties had year-over-year price growth of 20% or more
• “Tight listing inventory, low interest rates, and high buyer demand continue to drive momentum”
• Despite the most new listings in a December since 2010, at the end of the month total active listings system-wide in the MLS were down 44% from a year ago
• The market usually slows during the holiday season, but with fewer people traveling and not much else for buyers to focus on, the market remained competitive
• Buyers have to be creative to add value to their offers in ways other than price:
  • shorter or waived contingencies
  • pre-inspections
  • closing date flexibility
  • higher earnest money deposits
  • agreeing upfront to pay the difference if a property’s appraised value is lower than the sales price
• System wide, single family home prices increased 12.9% compared to last year, where condos only rose 1.8%
• “It is most definitely a sellers’ market, and buyers should not depend on a significant increase in inventory or a decrease in prices in the coming months”
• “Have patience and prepare for multiple offer situations”

To read the full press release, click here.