Buyer hesitancy sidelines some while others compete for scarce housing inventory
*NOTE* – the data we are looking at is from the full month of October. The NWMLS comprises 26 of Washington’s 39 counties, mostly in the western part of the state.
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:
- Brokers are detecting indecisiveness by some buyers who are getting mixed “work from home” messages from their employers.
- Coupled with cooler, wetter weather and increases in mortgage rates were likely factors in slower listing and sales activity during October.
- “While the overall slowdown in the market is seasonal and can be attributed to people being priced out of the market, as well as a slight uptick in interest rates, supply chain issues experienced with construction materials late this summer are beginning to normalize.”
- New listings were down 11.6% compared to the same month a year ago, and nearly 19% down compared to September.
- Inventory is still very tight and we are approaching our seasonal low in inventory as the year closes out.
- Across all the NWMLS, prices for single-family homes and condos are 15% higher than a year ago.
- “The trends provide a mixed message as to whether demand will return to the cities as quickly as anticipated. With millennials looking for value and increased opportunities to purchase a home in the suburbs, it could be an interesting few months as to whether the lifestyle of the city and employers can change the balance of demand back to the city.”
- Buyers may find some relief with condos, but inventory is down about 55% from a year ago.
To read the full press release, click here.