April 2024 Seattle Housing Market Update

by Evan Richards

Decreased mortgage rates have yet to influence the market

Here are the bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of March):

Interest rates have decreased by 0.15% over the past month to 6.79%, and while the rate decrease is encouraging, it has yet to have a significant impact on prospective buyers’ purchasing power or prospective sellers’ willingness to give up low interest rate mortgages.
March 2024 saw an 11.2% decrease in the number of closed sales year-over-year, although median sales prices have continued to steadily rise with a year-over-year increase of 7.5%.
“With new listings picking up the pace from 2023 lows, potential home buyers have more options to choose from.”
“Still, there seems to be more buyers in the market than the available inventory. As a result, home prices continue to rise despite elevated mortgage rates and constrained affordability.”
There were 2,954 new listings in King County in March, almost exactly the same as March of 2023.
The number of pending sales in King County was up about 8% compared to last year.
The median price for residential homes and condominiums in King County was up almost 12% year-over-year to $850,000.
Of all the residential homes and condos that closed in King County in March, 41% sold above the list price, indicating multiple offers. About 20% sold at list price, 17% sold below list price, and 22% had to drop the price before getting an offer.

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 • June 7, 2021

June 2021 Housing Market Update (NWMLS Press Release)

by Evan Richards

May marked a month of new records for some market indicators

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

May’s inventory was down 46.6% compared to last year
year-over-year median price is 30% higher than a year ago
“Record low interest rates and job gains continue to drive the market, along with focused lifestyle changes”
rising home prices are prompting buyers to drive farther north, south, and east to find affordable homes
pending sales edged above the volume of new listings (high buyer demand has kept supply depleted)
“Only a decrease in demand will moderate house price trends”
“Frenzy-level buyer demand has not waned. The local market is still virtually sold out in the more affordable and mid-price ranges, as well as into the luxury ranges in some areas”

To read the full press release, click here.

Education • Market Update • NWMLS Press Release • January 11, 2021

January 2021 Housing Market Update (NWMLS Press Release)

by Evan Richards

“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.

Education • Market Update • NWMLS Press Release • December 8, 2020

December 2020 Housing Market Update (NWMLS Press Release)

by Evan Richards

Northwest MLS brokers say real estate activity across Washington remains strong

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:

buyer demand remains strong, while inventory is too low to satisfy the demand
buyers must be ready to compete, and they need the right search and offer strategies
more activity than there normally is this time of year
across the MLS, the number of sales is up about 23% compared to a year ago
prices are up about 14% from a year ago
inventory is down about 43% compared to last year
inventory for Seattle condos is actually up about 61% compared to last year, with prices rising almost 9%
mortgage interest rates hit their lowest level for the 14th time this year, currently at 2.71% for a 30-year fixed-rate mortgage
the so-called “COVID Effect” is causing buyers to want more space, inside and outside, for working and schooling from home

To read the full press release, click here.

Market Update • NWMLS Press Release • August 7, 2020

August 2020 Housing Market Update (NWMLS Press Release)

by Evan Richards

Opportunities abound for home buyers and sellers, but brokers say “don’t delay”

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

pent-up demand from homebuyers meant inventory remained tight
pending sales jumped nearly 14% from a year ago
inventory remained well below the level from last year (down about 39%)
interest rates at historical lows mean buyers can get much more for their money (many buyers are getting rates at under 3%)
depleted inventory means multiple offers in just about every market and at every price point
the need for housing outweighs the fears of coronavirus
suburban lifestyle continues to draw buyers especially with remote work becoming more common
with low inventory, prices continue to increase, but inventory looks to be inching up
demand will continue to far outstrip supply for quite a while
King County median price for homes and condos up 7.2% from a year ago to $670,000

To read the full press release, click here.