EducationMarket UpdateNWMLS Press Release October 11, 2023

October 2023 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

Indicators point to a continued market slowdown, optimism on the horizon

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

  • “The real estate market typically slows down in the fall and winter months. However, the high-interest rate environment has further decreased the purchasing power of prospective buyers leading to a continued decline in year over year transaction volume with overall median prices stagnating.”
  • When compared to the same month last year, September 2023 experienced a -20% change in active property listings on the market.
  • Most counties covered by the NWMLS (23 of 26) saw a decrease in the number of homes sold.
  • With mortgage rates at a 23-year high (7.31% for a 30-yr fixed rate mortgage as of 9/28/2023), Freddie Mac indicated more and more buyers and sellers say they are holding out for better circumstances.
  • Early in 2023, economists predicted gradual declines throughout the year, but in fact rates have trended higher.
  • It is unlikely mortgage rates would drop below 6% before the end of the year, “and most homeowners wouldn’t be motivated to sell unless rates dropped further.”
  • A recent study found that 92% of homeowners with a mortgage have a rate below 6%, and nearly a quarter (24%) have a rate below 3%.
  • “For buyers who are not in a hurry, the fall and winter months could bring better values and a less competitive environment to find the right home.”
  • “Any meaningful decline in mortgage rates could lead to a rush of buyers later in the year and into next.”

To read the full press release, click here.

EducationMarket UpdateNWMLS Press Release September 12, 2023

September 2023 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

Northwest MLS housing market “still lacks direction”

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

  • Prices on homes that sold during August rose 2.5% from a year ago, marking the first year-over-year (YOY) increase since January.
  • The number of new listings was down about 17.8% compared to August 2022.
  • The number of pending sales during August was down about 25% compared to last year.
  • Brokers and other industry-watchers point to upticks in mortgage rates as the culprit for declining sales.
  • The average interest rate on a 30-year home loan reached 7.23% as of August 24, the highest rate since 2001, but it subsequently dropped to 7.12% for the week ending September 7.
  • Along with forcing buyers to sit on the sidelines, the escalating rates are a deterrent to would-be sellers who bought or refinanced home in recent years and don’t want to swap their 3% rate for a 7% mortgage.
  • Active listings at the end of August were down more than 21.5% compared to a year ago.
  • Over the next two months home buyers will experience the best selection and availability of homes for sale until March 2024, due to the reduced number of homes that come on the market over the winter months.
  • Home prices will rise after the first of the year, particularly in the more affordable and mid-price ranges.
  • Inventory levels are still well below pre-pandemic averages, so the market remains tight.
  • Some hopeful homebuyers are turning to new construction where some builders are offering discounts or other incentives. About 25% of builders have been cutting prices to bolster sales.

To read the full press release, click here.

EducationMarket UpdateNWMLS Press Release January 9, 2023

January 2023 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

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.

EducationMarket UpdateNWMLS Press Release December 7, 2022

December 2022 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

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.

EducationMarket UpdateNWMLS Press Release July 7, 2022

July 2022 Seattle Housing Market Update

NWMLS Northwest Multiple Listing Service

Brokers, home buyers welcome growing inventory and market returning to “some sense of normalcy”

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

  • Compared to a year ago, brokers reported a healthy jump in inventory, double-digit drops in both pending and closed sales, and the smallest year-over-year increase in prices since June 2020.
  • The median sale price of a single-family home in King County was up 9.1% from a year ago to $851,000.
  • “What the changes mean in general terms, are more houses on the market, longer market times, stabilizing home prices, fewer showings and open house visitors, fewer offers at one time, and more price adjustments.”
  • At the end of June there was more than double the inventory compared to a year ago, and the best selection since October 2019.
  • “While there was a decrease in closed and pending sales in June, there is no reason to panic as we continue to move toward a more balanced market. Having the standing active inventory rise above the closed and pending categories in June means we are finally building inventory, which is healthy for the marketplace.”
  • “We are still not a buyer’s market by far.”
  • “Often change is good for one group but bad for another. In this case the change is good for buyers but does not really hurt sellers. Sellers who correctly price their home in today’s market are still able to get top of market prices. Buyers have more choices and may see a little bit of flexibility on price and terms from the seller.”

To read the full press release, click here.

EducationMarket UpdateNWMLS Press Release September 17, 2021

September 2021 Housing Market Update (NWMLS Press Release)

NWMLS Northwest Multiple Listing Service

Northwest MLS brokers say August activity follows patterns of seasonal slowing

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

  • End-of-summer vacations and back-to-school prep caused a decrease in activity that reflects a normal seasonal pattern
  • compared to July, August had fewer new listings, pending sales, and closed sales, lower median prices, and less overall inventory
  • overall open house traffic dipped as well
  • homes are sitting on the market slightly longer, but inventory is still low relative to demand
  • prices are up year-over-year about 18.2%
  • mortgage rates continue to be below 3%
  • condo sales in King County are up about 20% compared to a year ago, which could mean buyers are choosing to move back to the city or getting priced out of buying residential homes
  • luxury home sales continue to exceed expectations, with no signs of slowing
  • nearly 15% of this year’s sales (through August) commanded prices of $1 million or more

To read the full press release, click here.

EducationMarket UpdateNWMLS Press Release July 13, 2021

July 2021 Housing Market Update (NWMLS Press Release)

NWMLS Northwest Multiple Listing Service

Market offers hope for homebuyers, but Northwest MLS brokers say it may be temporary

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

  • number of active listings reached the highest level since November
  • volume of new listings added last month was highest number in 17 months
  • total active listings in Snohomish, King, and Pierce counties increased 14.5% from May
  • “Low inventory and high demand coupled with low interest rates continue to drive up the market.”
  • Snohomish County has the lowest inventory in the NWMLS, with inventory down more than 44% from a year ago
  • “While pending sales saw a significant drop over this time last year, we believe that rather than that being an indication of a flattening of the market, this is a result of our extreme heat events, a typical summer slowdown as schools let out and people starting vacations, and, this year, the reopening of the country and discontinuation of COVID-19 restrictions.”
  • well-priced properties are closing quickly
  • across the NWMLS, the median sales price rose nearly 27% from a year ago
  • “Generally speaking, July and August provide more opportunities for buyers as there is less competition because of vacations and fewer relocation buyers in mid-summer.”

To read the full press release, click here.

EducationMarket UpdateNWMLS Press Release June 7, 2021

June 2021 Housing Market Update (NWMLS Press Release)

NWMLS Northwest Multiple Listing Service

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.

EducationMarket UpdateNWMLS Press Release October 9, 2020

October 2020 Housing Market Update (NWMLS Press Release)

September’s home sales reached highest level since June 2018

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.

  • September’s closings marked a jump of nearly 28% from the same month a year ago
  • inventory is down 43% from a year ago
  • pending sales are up 23% from a year ago
  • prices for single family homes and condos combined are up 19% from a year ago
  • it’s too soon to make any predictions about how Boeing’s announcement to move 787 production to South Carolina away from Everett will affect the Snohomish County housing market
  • supply continues to be inadequate to meet demand
  • in King County, the median sale price for single family homes was $754,600 (median means half sold for more, half sold for less)

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.