June 2023 Seattle Housing Market Update

by Evan Richards

Brokers report improving inventory and year-to-date gains in sales, prices

*NOTE* – the data we are looking at is from the full month of May. The NWMLS comprises 26 of Washington’s 39 counties, mostly in the western part of the state.

Here are my bullet points from the newest press release from the Northwest Multiple Listing Service:

Home buyers around Washington state found the largest selection of listings last month since December.
Both pending sales and closed sales reached their highest volume in months.
High mortgage interest rates (about 7%) are crimping activity.
The median price across the entire MLS (26 of the counties in WA) is down 6.8% compared to last year, but up 10.4% since January. In King County, the residential median home price increased 16.5% since January.
“In May, there were both fewer resale listings and a lower number of homes going under contract compared to the same month a year ago.”
Inventory is at the highest level since December, but is still low. More than one-third of properties are sold above their list price due to limited inventory.

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • May 8, 2023

May 2023 Seattle Housing Market Update

by Evan Richards

“We’re moving in a positive direction”

*NOTE* – the data we are looking at is from the full month of April. The NWMLS comprises 26 of Washington’s 39 counties, mostly in the western part of the state.

Here are my bullet points from the newest press release from the Northwest Multiple Listing Service:

The latest report from NWMLS, summarizing April activity, shows year-over-year drops in new listings, pending sales and closed sales, an increase in total active listings, and lower prices.
With “very constricted” inventory, homes that are well priced continue to receive multiple offers.
In King County, the median price of $790,244 was 10.2% lower than last April’s median price of $880,000. However, a comparison with January shows prices are up 9.3%.
April marked the fourth consecutive month of rising prices.
New listings are down compared to last year, but slower sales means more total supply than a year ago.
“We’re moving at a slower pace than last year. We are maintaining a seller’s market given the lack of inventory along with multiple offers, as a healthy number of buyers absorb what is being listed. The key is we can’t compare today’s market to the record years we had during the pandemic.”
Freddie Mac data show the 30-year fixed rate mortgage rate near the end of April was 6.43%. That compares to the year-ago rate of 5.1% and a rate of 2.98% on 4/29/2021.
Matthew Gardner, Windermere’s chief economist, expects rates will continue to move lower with occasional spikes, and that they will hold below 6% in the second half of this year.

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • April 7, 2023

April 2023 Seattle Housing Market Update

by Evan Richards

Brokers around Washington state say spring market is “finally showing up”

*NOTE* – the data we are looking at is from the full month of February. The NWMLS comprises 26 of Washington’s 39 counties, mostly in the western part of the state.

Here are my bullet points from the newest press release from the Northwest Multiple Listing Service:

Stats show declines in some key metrics for March compared to 12 months ago, but steady gains when compared to February and January.
“Despite the year-over-year comparisons showing declines, the year-to-date trends indicate the market is moving in a positive direction, towards a healthy market, albeit at a lower velocity than last year.”
“With interest rates dropping and less competition overall, people who have been sitting on the sidelines are jumping back into the market.”
“Open house activity is up and we continue to see multiple offers on well-priced homes, with seller concessions starting to wane.”
At the end of March, active listings in the MLS database were up more than 73% from a year ago and up about 10.7% from February.
Prices overall were down about 7.5% from a year ago, however there is considerable variation depending on the area.
Freddie Mac’s chief economist said economic uncertainty continues to bring mortgage rates down.
“Over the last several weeks, declining rates have brought borrowers back to the market but, as the spring homebuying season gets underway, low inventory remains a key challenge for prospective buyers.”

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • March 7, 2023

March 2023 Seattle Housing Market Update

by Evan Richards

Brokers say housing activity seems to be trending in direction of a normal seasonal market

*NOTE* – the data we are looking at is from the full month of February. 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:

Softening prices are enticing some would-be buyers, while others remain on the sidelines hoping fluctuating mortgage rates will stabilize or decline.
The data show upticks in new listings, pending sales, closed sales and median prices compared to January, but when compared to the same month a year ago, figures for those metrics declined.
“Buyer demand remains at reasonable levels considering the high interest rate environment we’re in. Multiple offers are still seen on the right properties.”
“Although the number of homes for sale in the tri-county area of King, Pierce and Snohomish counties is more than double from a year ago, there were still fewer homes available to buy in February than in January.”
“Year over year, home sales prices are down, but that isn’t surprising given that a year ago homebuyers were scrambling to buy in the face of mortgage rates that were about to skyrocket.”
“Many homebuyers are making their buying decisions now while inventory is available, and they’ll refinance at a later date.”
“The reason there’s so little inventory is because sellers are worried about finding a replacement home and are reluctant to give up their sweetheart 3% and 4% mortgages.”

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • February 6, 2023

February 2023 Seattle Housing Market Update

by Evan Richards

Northwest MLS brokers encouraged by declining mortgage rates with some saying pent-up demand is triggering multiple offers

*NOTE* – the data we are looking at is from the full month of January. 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:

Pending sales around Washington state reached the highest level since October and surged nearly 44% from December, but were still only 64% of the sales activity from January 2022.
Prices on closed sales edged up slightly, at 0.41%, compared with twelve months ago.
Inventory was down about 13% compared to December, but up significantly compared to last January’s low inventory. However, King, Pierce, and Snohomish counties are still a seller’s market with inventory not keeping up with buyer demand.
“We are seeing multiple offers once again. It’s not like it was at the peak of the market, but buyers are out there and competing for properties.”
The average rate for a 30-year fixed mortgage is in the low 6% range, down about a full point from November when it peaked at just over 7%.
The recent decline in rates means for today’s buyer of a median priced home, the down payment amount is lower than it would have been last summer.
“While interest rates have tempered a bit, many buyers are moving forward to purchase with an intent to refinance once rates come down more.”

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • January 9, 2023

January 2023 Seattle Housing Market Update

by Evan Richards

December ends with a “whimper,” and 2022 was “a tale of two housing markets”

*NOTE* – the data we are looking at is from the full month of December. 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:

“In the first half of 2022, we had low interest rates, rising prices, and little inventory. The second half of the year brought increasing interest rates, some lowering of prices, and increasing inventory.”
December 2022 prices were modestly lower than December 2021, but the median home sale price for all of 2022 was about 8.9% higher than in 2021.”
In December 2022, there was continued growth in the number of active listings compared to 2021, but sharp drops in the number of pending and closed sales. As a result, there is currently about three times the number of active listings compared to last year.
“The market has slowed due to rising interest rates and economic news.”
“As rents go up so do the number of folks who want to buy.”
Quite a few buyers dropped out of the market as rates went up. Many of those people are still in the market but are reassessing their price ranges and search areas based on interest rate hikes and reduced buying power. With the median sold price flat in most counties and on decline in others, sellers are becoming more competitive.
Gardner expects prices will continue to decline through the first half of 2023 but said “with mortgage rates expected to slowly fall from current levels, sale prices should start increasing again in the second half of the year. Ultimately, once prices pull back to where they would have been if the pandemic had never occurred, they will start to stabilize and then return to a more normalized pace of appreciation.”
Finding the proper price will be important for sellers in 2023, while buyers can look forward to increasing inventory.
Increased competition among sellers has been good for buyers, contributing to a more balanced market.

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • December 7, 2022

December 2022 Seattle Housing Market Update

by Evan Richards

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.

Education • Market Update • NWMLS Press Release • November 7, 2022

November 2022 Seattle Housing Market Update

by Evan Richards

Motivated home buyers turn to creative financing options

*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:

“Buyers are benefiting from more choices in inventory and less competition, while sellers are more negotiable when it comes to contingencies.”
“We are seeing more 2/1 buydowns and adjustable-rate mortgages with buyers planning to refi when the rates come back down,”
Pending and closed sales were down 39% and 35% compared to last October. Part of this is homes taking longer to sell, with fewer buyers making offers.
We currently have the highest level of inventory since January 2019, with more than double the amount of a year ago.
Across the whole MLS, median sales prices rose year-over-year, with an increase of about 3.5% from last October, but a decline of approximately 9% from May when prices peaked.
In King County, median prices were up more than 8% compared to last year.
“There is no doubt the market has changed with higher interest rates being the main culprit.”
“We are continuing to move into a more traditional market. Buyers are out looking and watching the market, and they have more time to make informed choices.”
We are seeing some listings coming on the market and sitting for several weeks, while others that come on immediately get multiple offers or above asking price offers. Both buyers and sellers need to be prepared.

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • October 8, 2022

October 2022 Seattle Housing Market Update

by Evan Richards

Brokers say home buyers “finally get some relief” with return to “more traditional market”

*NOTE* – the data we are looking at is from the full month of September. 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:

Active listings are nearly doubled from a year ago, pending sales declined more than 31%, but prices in most counties are still rising.
“Though technically still a seller’s market, it is more favorable to buyers than it has been in a decade,” though inflation and rising mortgage interest rates have greatly impacted affordability.
“It’s worth noting that current inventory levels in King and Snohomish counties are still around 13% lower than they were in September 2019 prior to the pandemic-induced market shift.”
“We can’t compare today’s housing market to the low mortgage rates of the COVID housing stimulus years (2020 to spring 2022).” He suggests pre-pandemic data provides a more realistic comparison, noting “In September, we experienced about the same number of new listings as we did pre-pandemic, but with less intensity and a lower percentage of homes going under contract.”
The median price in King County increased 6% from a year ago.
In general, “sellers are still realizing nice gains.”
Gardner pointed out home prices “remain positive compared to a year ago,” adding, “I don’t expect that to change through the end of 2022.” By spring, however, he believes “it’s likely that year-over-year prices will start to trend negative. That said, I firmly believe that this will only be a short period of correction, so homeowners in the Puget Sound area shouldn’t be too concerned.”
Uncertainty about the direction of mortgage rates is prompting buyer hesitancy.
Allison Schrager, a Bloomberg Opinion columnist who covers economics, recently commented about buyers “sitting on the sidelines until rates or prices or both decline.” She faults the Fed’s interference, writing “don’t count on rates falling to those pandemic lows. They were the result of extraordinary market manipulation from the Fed,” suggesting there will be a “hangover from the very low rates in 2020 and 2021.”

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • August 10, 2022

August 2022 Seattle Housing Market Update

by Evan Richards

Brokers say all parties in housing transactions
need to recalibrate during shifting market

*NOTE* – the data we are looking at is from the full month of July. 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:

Residential inventory across the NWMLS is up to just over 2 months of inventory, the highest it’s been since January 2019.
Active listings have nearly doubled from a year ago.
“Buyers still have to compete with other would-be homeowners, and depending on the property, some sellers are receiving offers over their asking price.”
Activity is slowing. Pending sales were down about 24% from a year ago, and closed sales were down almost 30% compared to last year.
Despite fewer sales, prices still rose, but at a slower rate. The median price on last month’s closed sales of single family homes and condos in Seattle increased 7% from a year ago.
“Buyer opportunities have returned to the Puget Sound market, including increased availability and selection of properties, as well as fewer multiple offer/premium pricing situations.”
Marketing times continue to be brisk, saying most sellers receive offers within 15 days, although that may increase as inventory grows.
“With listings starting to build again we are seeing a bit of a natural slowdown, yet still very much a sellers’ market.”
“We are not seeing median prices drop significantly. Slight seasonal decreases from May to July are typical for this time of year after the spring
market, with this year further impacted in July by a heat wave and spike in travel.”

To read the full press release, click here.

Brokers report improving inventory and year-to-date gains in sales, prices

“We’re moving in a positive direction”

Brokers around Washington state say spring market is “finally showing up”

Brokers say housing activity seems to be trending in direction of a normal seasonal market

Northwest MLS brokers encouraged by declining mortgage rates with some saying pent-up demand is triggering multiple offers

December ends with a “whimper,” and 2022 was “a tale of two housing markets”

Despite seasonal slowdown, Northwest MLS brokers report pent-up demand for housing

Motivated home buyers turn to creative financing options

Brokers say home buyers “finally get some relief” with return to “more traditional market”

Brokers say all parties in housing transactions need to recalibrate during shifting market

Brokers say all parties in housing transactions
need to recalibrate during shifting market