Despite seasonal slowdown, Northwest MLS brokers report pent-up demand for housing
*NOTE* – the data we are looking at is from the full month of November. 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:
- December is traditionally the low point of new listings coming onto the market because of the holiday season, but the seasonal slowdown is happening earlier this year due to high interest rates, economic news, local weather, and a volatile stock market.
- Some buyers are sitting on the sidelines waiting for interest rates to come down or thinking prices will come down even further.
- The buyers who are in the market are serious and determined, with pent-up demand driving the market.
- Interest rates are predicted to go down as the economy works on lowering inflation, but if they do then this will pull more buyers back into the market, keeping prices from dropping.
- “Early in the new year, I expect the Fed to start pulling back from their aggressive policy stance, and this will allow rates to begin slowly stabilizing.”
- King County active inventory is more than 3 times what it was in November 2021 (3,599 vs 1,149), even with fewer new listings added compared to last year (1,664 vs 2,068). This is because homes are sitting on the market longer.
- The King County median sold price was up almost 7% compared to the same month last year ($800,000 in 2022 vs $750,000 in 2021).
- Both the number of home buyers and the number of new listings are running below pre-pandemic seasonal levels.
- Looking ahead, Matthew Gardner (Windermere’s chief economist) said he does not expect supply to grow significantly with inventory levels remaining well below their long-term average. “It’s unlikely we’ll see a buyer’s market in 2023, but I do expect a return to a far more balanced one.”
To read the full press release, click here.