EducationMarket UpdateNWMLS Press Release December 8, 2023

December 2023 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

Reduced inventory motivates increased home prices

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

  • A slight decrease in interest rates has raised cautious optimism – interest rates had fallen to around 7.2% as of December 1, 2023, in comparison to 7.8% in October 2023.
  • The decline in seasonal inventory continues to drive home prices upward, spurring an increase of 4.6% in prices from November 2022.
  • Closed sales are down about 16% compared to November 2022. This is due to less homes for sale in general.
  • Number of sales and housing inventory usually drop in the fall and winter months, but the seasonal trend is lower than usual because of the high interest rates.
  • “With the 30-year fixed mortgage rate currently just over 7.2%, the purchasing power of prospective buyers remains stunted relative to a few short years ago.”
  • “Current owners with low-rate mortgages continue to be reluctant to sell.”
  • Expect new listings to start increasing slowly in the new year. Buyers will beat sellers to the market and be out shopping before the inventory can keep up, increasing competition and prices.

To read the full press release, click here.

EducationMarket UpdateNWMLS Press Release April 7, 2023

April 2023 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

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.

EducationMarket UpdateNWMLS Press Release March 7, 2023

March 2023 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

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.

EducationMarket UpdateNWMLS Press Release October 8, 2022

October 2022 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

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.

EducationMarket UpdateNWMLS Press Release January 11, 2021

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.

Uncategorized April 2, 2019

Interest Rates at 12-Month Lows

Interest rates for mortgages are now around the low 4% range for a 30-year fixed loan.

There’s a general rule of thumb for interest rates that goes like this: for every 1% change in interest rates, you gain or lose 10% buying power. So if you were pre-approved to buy a $500,000 house a few months ago when rates were around 4.5%, you might now be able to afford a $525,000 house (5% more buying power).

It’s also a good time to refinance into a lower rate, which could save you tens of thousands of dollars in the long term.

Talk to your mortgage consultant today, and if you don’t have one already, I’m happy to provide references to a few that I know and trust.