Real Estate BlogRecently posted or modified blog postshttps://www.pnwr.com/blog/Copyright PNWR.com2023-06-26T14:57:21-07:00tag:pnwr.com,2012-09-20:9578Unlocking The Power Of Movement Boost: Boosting Your FHA Loan OptionsIntroduction
Every aspiring homebuyer knows what a daunting challenge it can be to secure the right loan. FHA loans, backed by the Federal Housing Administration, offer significant benefits like lower down payments and lenient credit qualifications that make them popular among first-time buyers.
In this article, we'll unlock the power of Movement Boost, an innovative program designed to enhance your <a href="https://www.hud.gov/buying/loans" target="_blank" title="FHA Loan Options">FHA loan options</a> and pave the way for accessible homeownership. Get ready: we're about to change how you view financing your dream home!
Key Takeaways
Movement Boost is an innovative program designed to enhance FHA loan options by providing flexible credit score requirements, lenient debt-to-income ratios, and low (or no) closing costs.
FHA loans offer several advantages including easier credit qualifications, a low down payment requirement, more affordable mortgage insurance, lenient debt-to-income ratios, financing options for one- to four-unit properties and no income limits.
Movement Boost enhances FHA loan options through flexible credit score requirements, lenient debt-to-income ratios, acceptance of gift funds, low (or no) closing costs eligibility for non-occupant co-borrowers, and access to low FHA rates.
Understanding Movement Boost and FHA Loans
Movement Boost is a program designed to enhance <a href="https://www.hud.gov/buying/loans" target="_blank" title="FHA Loan Options">FHA loan options</a> by providing flexible credit score requirements, lenient debt-to-income ratios, and low (or no) closing costs.
What is Movement Boost?
Movement Boost is an innovative FHA loan program launched by <a href="https://movement.com/" target="_blank" title="Movement Mortgage">Movement Mortgage</a>, a pioneer in retail lending. Introduced on May 23, 2023, this robust tool is designed to provide qualified buyers with the means to cover their entire down payment, eliminating one of the significant barriers to homeownership.
The initiative embodies <a href="https://movement.com/" target="_blank" title="Movement Mortgage">Movement Mortgage</a>'s commitment to economic recovery and rebuilding efforts by making it easier for many potential homebuyers struggling with upfront costs. Beyond ordinary assistance programs, Movement Boost sets itself apart by offering zero-down payment schemes — a game-changing option that significantly enhances access and affordability for consumers nationwide seeking FHA loans.
What are FHA Loans?
FHA loans are a popular choice, particularly among first-time homebuyers. These government-insured mortgages offer a route to homeownership for low- to moderate-income families who might otherwise struggle with stringent lending requirements.
Unique advantages of FHA loans include more manageable credit prerequisites, more affordable down payments, and flexible income stipulations set by the Federal Housing Administration (FHA). With their assistance and regulation, these loans open up avenues for achieving the dream of owning a home.
Despite carrying lower interest rates compared to some conventional offerings, prospective borrowers need to familiarize themselves with the specifics of FHA loan criteria and processes prior to application.
Advantages of FHA Loans
FHA loans have several advantages, including easier credit qualifications, a low down payment requirement, more affordable mortgage insurance, lenient debt-to-income ratios, financing options for one- to four-unit properties, and no income limits.
Easier credit qualifications
Making homeownership your reality, not merely a dream can be easier than you think. FHA loans are designed to break through the traditional barriers of stringent credit qualifications that typically leave many potential homebuyers stranded.
You see, the beauty of an FHA loan lies in its leniency towards credit history. Even if your past financial decisions aren't sparkling clean or perhaps you haven’t built a solid credit history yet - don't fret! Lenders offering these loans know life happens and are willing to give applicants with less-than-perfect scores a fair shot at homeownership.
The minimum <a href="https://www.fico.com/en/products/fico-score" target="_blank" title="FICO Score">FICO® score</a> for grabbing hold of that low down payment benefit stands at 580, significantly lower compared to conventional loans. This eases access to funding, especially for those with higher amounts of debt or limited down payments on hand.
Low down payment
With FHA loans, one of the major advantages is the low down payment. Unlike traditional mortgages that may require a significant upfront payment, FHA loans only require a down payment of 3.5%.
This makes homeownership much more accessible, especially for first-time homebuyers who may not have substantial savings. For example, if you're purchasing a $200,000 home, your down payment would be just $7,000 with an FHA loan.
This lower down payment requirement allows you to enter the housing market sooner and start building equity in your own home. So whether you're dreaming of buying your first home or looking to upgrade to something bigger and better, an FHA loan with its low down payment option can help make it happen without breaking the bank.
More affordable mortgage insurance
FHA loans offer more affordable mortgage insurance compared to conventional loans. This means that borrowers can save money on their monthly payments and potentially qualify for a higher loan amount.
With the recent reduction in FHA mortgage insurance premiums by 30 basis points, homeownership is becoming even more accessible and affordable for buyers. The premium reduction program implemented by the Biden-Harris Administration will save FHA homebuyers an average of $800 annually on their mortgage payments.
This lower cost of mortgage insurance lowers the risk to lenders and provides greater flexibility for borrowers, making it an attractive option for those looking to purchase a home with a smaller down payment and easier credit qualifications.
Lenient debt-to-income ratio
FHA loans offer a lenient debt-to-income ratio requirement, which is great news for homebuyers. Your DTI ratio is an important factor in determining your eligibility for a mortgage, as it shows how much of your monthly income goes toward debt payments.
With FHA loans, you have more flexibility with this ratio compared to conventional loans. While the specific requirements may vary based on factors like credit score and loan qualifications, FHA loans generally allow for higher DTI ratios.
This means that even if you have some existing debts or financial obligations, you still have a good chance of qualifying for an FHA loan. So whether you're managing student loans or other monthly debts, an FHA loan can be a viable option that takes into account your unique financial situation while helping you achieve homeownership.
Financing available for one- to four-unit properties
When it comes to FHA loans, one of the advantages is that they offer financing options for a wide range of properties. Whether you're looking to buy a single-family home, a condominium, or even a two- to four-unit property, FHA loans have got you covered.
This means that if you're interested in investing in rental properties or want the flexibility of living in one unit and renting out the others, an FHA loan can make that dream a reality. So whether you're envisioning your first home or considering expanding your real estate portfolio, FHA loans provide flexibility and financing options for all types of properties.
Plus, with Movement Boost assisting with down payments and closing costs on these properties as well, homeownership has never been more accessible!
No income limits
One of the major advantages of FHA loans is that there are no income limits to qualify. This means that regardless of how much you earn, you can still be eligible for an FHA loan. Unlike other mortgage options, where your income may restrict your chances of approval, FHA loans are designed to help low- to moderate-income families achieve homeownership without any income limitations holding them back.
Whether you're a first-time homebuyer or someone with a higher income, FHA loans offer equal opportunities for everyone. So if you've been worried about meeting strict income requirements, rest assured that with an FHA loan, your earning potential won't stand in the way of securing your dream home.
How Movement Boost Enhances FHA Loan Options
Movement Boost enhances FHA loan options through flexible credit score requirements, lenient debt-to-income ratios, acceptance of gift funds, low or no closing costs, eligibility for non-occupant co-borrowers, and access to low FHA rates.
Flexible credit score requirements
To make the home buying process more accessible, Movement Boost offers flexible credit score requirements for FHA loans. While other lenders may require a minimum credit score of 580, with Movement Boost, you can qualify with a FICO score as low as 620.
This is great news if your credit score isn't quite where you want it to be yet. It means you still have an opportunity to secure financing and achieve your dream of homeownership. Don't let your credit score hold you back - Movement Boost is here to help!
Lenient debt-to-income ratios
One of the major advantages of Movement Boost for FHA loans is its lenient debt-to-income ratios. Unlike traditional lenders, Movement Mortgage allows borrowers with higher levels of debt to still qualify for an FHA loan.
This flexibility can be a game-changer for homebuyers who may have previously been turned away due to high debts. With Movement Boost, you have a better chance of getting approved even if your monthly expenses are on the higher side.
This opens up more opportunities for you to become a homeowner and achieve your dreams without sacrificing your financial stability.
More lenient on gift funds
FHA loans are known for their flexibility when it comes to gift funds. Unlike traditional mortgages, FHA loans allow borrowers to use gift money from family members or other sources towards their down payment or closing costs.
This means that if you're a homebuyer and need a little extra help with your upfront expenses, FHA loans are a great option. The Federal Housing Administration understands that sometimes, buyers may not have enough saved up on their own, so they give you the leeway to rely on gift funds to make the purchase of your dream home more attainable.
So if you have generous loved ones who want to contribute towards your homeownership journey, take advantage of an FHA loan and unlock the power of gift funds!
Low (or no) closing costs
One of the major advantages of unlocking the power of Movement Boost for FHA loans is the potential for low (or even no) closing costs. Typically, FHA closing costs can range from 3% to 6% of a home's price, which can be a significant expense for homebuyers.
However, with Movement Boost, borrowers may be able to reduce or eliminate these costs altogether. This means that you can save a considerable amount of money when purchasing your new home and have more funds available for other expenses or towards your down payment.
It's important to note that FHA lenders are restricted by guidelines that limit them from charging more than 3% to 5% in closing costs, providing added protection and affordability for borrowers.
Non-occupant co-borrowers accepted
If you're facing challenges in qualifying for an FHA loan on your own, don't worry! Movement Boost has got you covered. With Movement Boost, non-occupant co-borrowers are accepted, giving you the opportunity to have a family member or close friend co-sign with you and increase your chances of securing maximum financing.
These individuals can be related to you by blood, marriage, or law, and their higher income or better credit score can greatly improve your eligibility for an FHA loan. Whether it's your dream home or an investment property with up to four units, having a non-occupant co-borrower by your side opens doors to more possibilities.
So why wait? Explore the benefits of Movement Boost today and unlock new opportunities for homeownership!
Low FHA rates
FHA loans come with the benefit of low-interest rates, making them an attractive option for homebuyers. These low rates are one of the reasons why Movement Boost enhances FHA loan options. With Movement Boost, borrowers can access even lower rates and save money over the life of their mortgage.
This means more affordable monthly payments and potentially significant savings in the long run. So if you're looking for a mortgage with competitive rates, consider unlocking the power of Movement Boost to boost your FHA loan options.
Benefits of Unlocking Movement Boost for FHA Loans
Unlocking Movement Boost for FHA loans provides access to financing options that are otherwise limited, a faster qualification process, and greater affordability and flexibility. Find out how you can boost your FHA loan options today!
Access to financing for borrowers with limited options
If you're a homebuyer with limited options for financing, unlocking Movement Boost can be the game-changer you've been waiting for. With Movement Boost, you gain access to FHA loans that are specifically designed to help borrowers like yourself who may not qualify for conventional financing.
These loans offer attractive benefits such as easier credit requirements, flexible down payment options, and great interest rates. Whether you're a first-time or repeat homebuyer, Movement Boost opens up doors for homeownership by providing the assistance you need to make your dream a reality.
Say goodbye to limited options and hello to the power of Movement Boost and FHA loans!
Faster qualification process
Unlocking the power of Movement Boost can significantly expedite the qualification process for FHA loans. This means that as a homebuyer, you'll be able to secure your dream home faster and with less hassle.
With the benefits of Movement Boost, pre-qualifying for an FHA loan becomes a simple and straightforward process, thanks to the government's insurance backing. You won't have to jump through hoops or wait for weeks to find out if you're eligible.
Plus, with faster qualification comes peace of mind knowing that you can move forward confidently in your homebuying journey. So why wait? Unlock the power of Movement Boost today and experience a swift and seamless path to homeownership!
Greater affordability and flexibility
Homeownership is a dream for many, and with Movement Boost enhancing FHA loan options, it becomes even more attainable. One of the key benefits of unlocking Movement Boost is the greater affordability and flexibility it offers.
For starters, FHA loans have lower down payment requirements, making it easier to get your foot in the door as a homeowner. Additionally, borrowers with less-than-perfect credit histories can still qualify for these loans, providing them with more options in the housing market.
With competitive interest rates and lenient credit qualifications, FHA loans offer the affordability and flexibility needed to make homeownership a reality for individuals and families alike.
Conclusion
In conclusion, unlocking the power of Movement Boost can truly boost your FHA loan options. With easier credit qualifications, low down payment requirements, and more affordable mortgage insurance, Movement Boost opens up a world of possibilities for homebuyers.
Take advantage of this incredible opportunity to enhance your FHA loan experience and make your homeownership dreams a reality. Don't let limited options hold you back - unlock Movement Boost and discover the true potential of FHA loans today!
FAQs
1. What is the Movement Boost for FHA loans?
The Movement Boost is a program designed to boost your FHA loan options by providing additional benefits and support for borrowers. It can help you qualify for a higher loan amount, lower interest rates, or reduced down payment requirements.
2. How can I unlock the power of Movement Boost?
To unlock the power of Movement Boost, you need to work with a qualified lender who offers this program. They will guide you through the application process and help determine if you are eligible for any additional benefits or incentives.
3. Who is eligible for Movement Boost?
Eligibility criteria can vary depending on the lender and specific program guidelines. However, generally speaking, borrowers who meet certain income requirements, credit scores, and debt-to-income ratios may be eligible for Movement Boost.
4. What are the advantages of using Movement Boost for my FHA loan?
Using Movement Boost for your FHA loan can provide several advantages including access to more flexible lending options, potentially lower interest rates, reduced mortgage insurance premiums, and assistance in overcoming financial hurdles that could otherwise hinder your ability to secure a favorable home loan option.2023-06-26T14:12:55-07:002023-06-26T14:56:49-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9577Embracing The Nutty Delight: A Comprehensive Guide To Longview's Squirrel FestIntroduction
Looking for a unique, family-friendly event to attend this summer in Washington? The <a href="https://lvsquirrelfest.com/" title="Squirrel Fest Longview WA" target="_blank">Squirrel Fest in Longview</a> is the nuttiest function in the Northwest! Our comprehensive guide will take you through all you need to know about this quirky festival—from its exciting activities, schedule, and sponsors—and how it boosts local businesses.
Get ready—it's going to be a wildly fun ride!
Key Takeaways
Squirrel Fest in Longview, Washington is an annual festival that celebrates the town's love for squirrels and offers a variety of activities for all ages.
The festival features a lively marketplace with food vendors offering delicious treats and unique squirrel-themed merchandise.
The Junior Squirrels Kids Zone provides endless fun for children with face painting, arts and crafts, inflatable obstacle courses, and photo opportunities with adorable squirrel mascots.
The Squirrel Bridge Map helps visitors navigate through Longview's squirrel culture, highlighting points of interest such as the famous Nutty Narrows Bridge and other squirrel-themed attractions.
Understanding Squirrel Fest
Squirrel Fest is a nutty event held in Longview, Washington that has become known as the Nuttiest Event in the Northwest.
What Is Squirrel Fest?
Squirrel Fest is a unique, annual festival held in Longview, Washington. Organized by the local group fondly known as The Sandbaggers, the event provides a fun-filled nutty experience for attendees of all ages.
Squirrel Fest stands out from your typical festivals because it's intimately connected to our town’s famous <a href="https://www.mylongview.com/400/Nutty-Narrows-Bridge" target="_blank">Nutty Narrows Squirrel Bridge</a>. This quirky and entertaining festival celebrates not only our love for squirrels but also offers an array of activities that both kids and adults can genuinely enjoy.
It's more than just an event; it's an embodiment of our community spirit here in Longview!
The Nuttiest Event In The Northwest
Unleash your inner squirrel at Longview's Squirrel Fest, fondly touted as the "nuttiest event in the northwest." Celebrating its 11th year with a grand return after a COVID-19-induced pause, this unique squirrel-themed festival in Washington is all set to sweep you off your feet.
A delightful blend of cultural richness and quirky fun, it places Longview firmly on the map for those seeking extraordinary experiences. As part of the city's centennial celebrations, even the local infrastructure has embraced our furry friends — notably with an eye-catching copper squirrel bridge that won a design contest back in 2013.
From locals to visitors alike, Squirrel Fest always promises an unforgettable experience brimming with pure nutty delight!
Exciting Activities And Attractions
Experience the lively marketplace filled with delicious food vendors, explore the <a href="https://www.facebook.com/FlyingSquirrelsBaseball/" target="_blank">Junior Squirrels Kids Zone</a> for fun activities, navigate the <a href="https://www.kelsolongviewchamber.org/squirrel-bridge-map/" target="_blank">Squirrel Bridge Map</a> to spot furry friends in action, and don't forget to check out the <a href="https://www.lukebryan.com/join" target="_blank">Nut House Merchandise and Special Tickets</a> for a delightful squirrel-themed shopping experience.
Marketplace And Delicious Food Vendors
A key highlight of the Squirrel Fest is the marketplace and delicious food vendors that add flavors to this unique event. The marketplace, thronging with local artisans, is a treasure trove of craftwork showcasing inventive designs and creativity at its finest.
Whether you're looking for charming squirrel-themed trinkets or artisanal gifts, there's something for everyone as you stroll through our bustling market scene. On another note, it's not just browsing and shopping that should be on your list but also indulging in palate-pleasing delicacies offered by the food vendors.
Imagine relishing scrumptious meals while basking in Longview's beautiful environment - it doesn't get better than this at Squirrel Fest! Adding an extra crunch to your experiences, various vendor stalls serve up everything from traditional festival treats to innovative creations all inspired by our furry mascot – a nutty experience indeed!
<a href="https://www.facebook.com/FlyingSquirrelsBaseball/" target="_blank">Junior Squirrels Kids Zone</a> And Activities
Located within Longview's Squirrel Fest, the Junior Squirrels Kids Zone is a haven of excitement for our little ones. Filled with squirrel-themed activities and attractions, this special area promises endless fun for children of all ages.
From face painting to arts and crafts, your kids can unleash their creativity while immersing themselves in the world of squirrels. They can also jump around in bouncy houses or challenge their agility on inflatable obstacle courses.
Don't forget to check out the adorable squirrel mascots roaming around, ready to interact and take memorable photos with your family. The Junior Squirrels Kids Zone ensures that our youngest attendees have an unforgettable experience at Longview's Squirrel Fest!
<a href="https://www.kelsolongviewchamber.org/squirrel-bridge-map/" target="_blank">Squirrel Bridge Map</a>
The Squirrel Bridge Map is your ultimate guide to all things nutty in Longview. This comprehensive map highlights the various points of interest related to embracing the delight of squirrels.
From the famous Nutty Narrows Bridge to other squirrel-themed attractions, this map has got you covered. Discover the seven squirrel bridges that provide safe passage for our furry friends across busy streets, preventing traffic fatalities and gaining international attention.
Whether you're a local or visiting from out of town, the Squirrel Bridge Map will help you navigate through Longview's unique squirrel culture and make the most out of your time at Squirrel Fest.
Nut House Merchandise And Special Tickets
The Nut House Merchandise and Special Tickets are a must-have at Longview's Squirrel Fest. These exclusive items allow you to fully embrace the nutty theme of the festival and take home unique souvenirs and experiences.
From squirrel-themed clothing to nut-shaped accessories, the Nut House Merchandise offers a wide range of fun products that celebrate our furry friends. Additionally, with Special Tickets, you can gain access to exciting activities and attractions like exclusive photo ops with Sandy B.
McNutt himself! So make sure to grab your <a href="https://www.lukebryan.com/join" target="_blank">Nut House Merchandise and Special Tickets</a> at Squirrel Fest for an unforgettable nutty experience.
Event Schedule
The Longview Squirrel Fest has a jam-packed schedule of exciting events that will keep you entertained all weekend long. From the moment you arrive, there's something for everyone to enjoy. Start off your day by exploring the bustling marketplace filled with local vendors offering delicious food and unique squirrel-themed merchandise.
The Junior squirrels kids zone is perfect for the little ones, with games, face painting, and even a chance to meet the festival's friendly squirrel mascot.
Don't forget to grab a Squirrel Bridge Map and go on an adventure throughout Longview, spotting squirrel statues scattered around town. And if you're looking for exclusive experiences, be sure to check out the Nut House Merchandise and Special Tickets available at the event.
With such a diverse lineup of activities, from live music performances to interactive workshops, there's never a dull moment at Squirrel Fest. Make sure to visit lvsquirrelfest.com for the full schedule so you don't miss out on any of these nutty delights!
Saturday, August 19th 2023
10:00 AM – Official Opening! Vendor Booths, Nut House, Beer Garden & Kids Activities
10:00 AM – Sandy B. McNutt Welcoming
10:00 AM – Cornhole Tournament Begins
11:00 AM – Squirrel Bridge Tour @ Tour Staging Area ($10)
12:00 PM – Squirrel Bridge Tour @ Tour Staging Area ($10)
1:00 PM – Squirrel Bridge Tour @ Tour Staging Area ($10)
2:00 PM – Beer Garden $5 Cover Fee Starts
2:00 PM – Squirrel Bridge Tour @ Tour Staging Area ($10)
3:00 PM – Band Performance – Coming Soon!
3:00 PM – Squirrel Bridge Tour @ Tour Staging Area ($10)
4:00 PM – Squirrel Bridge Tour @ Tour Staging Area ($10)
5:00 PM – Art In The Park Closes
6:00 PM – Band Performance – Coming Soon!
7:00 PM – Band Performance – Coming Soon!
8:00 PM – Cornhole Tournament Ends
10:00 PM – Beer Garden Closes
10:00 PM – Live Music Ends
Sponsors And Contributions
Squirrel Fest relies on the generous contributions of <a href="https://lvsquirrelfest.longviewrotary.com/wp-content/uploads/2022/04/squirrel_fest_pitch_deck_2022-4_6_22.pdf" title="Become a Sponsor Longview Squirrel Fest" target="_blank">sponsors</a> to make this nutty event possible, and we are grateful for their support. From local businesses to squirrel enthusiasts, our sponsors play a crucial role in creating an unforgettable experience for attendees.
Additionally, Sandy B. McNutt's squirrel photos and visits add an extra touch of charm to the festival. Interested in becoming a sponsor? Contact us today!
Squirrel Fest Is Impossible Without Our Sponsors
The Longview Squirrel Fest is a one-of-a-kind event that celebrates all things squirrel-related, and it wouldn't be possible without the support of our incredible sponsors. These generous businesses and individuals contribute not only financial support but also their time and resources to ensure that Squirrel Fest remains a free event for everyone in the community to enjoy.
Their contributions also help us offer discounted concert ticket prices, making it even more accessible for families to attend. We are incredibly grateful for their support, as without them, this nutty celebration just wouldn't be possible.
To become a sponsor of the Longview Squirrel Fest means joining a vibrant community of local businesses who recognize the importance of supporting cultural events like ours. By becoming a sponsor, your business will have the opportunity to showcase its products or services to thousands of festival-goers while demonstrating your commitment to our local community.
Sandy B. McNutt Squirrel Photos And Visits
Sandy B. McNutt, the adorable mascot of Squirrel Fest, is always ready to pose for a picture with festival-goers! Get your cameras ready because Sandy loves taking squirrel selfies and making memories with visitors.
He even visited the original squirrel bridge in Longview, Washington, where he shared a fascinating backstory about Squirrel Fest in verse. Don't miss out on the chance to meet Sandy B. McNutt and capture some amazing squirrel photos during this nutty celebration in Longview!
Become A Sponsor
Squirrel Fest thrives on the support and contributions of our local community. By becoming a sponsor, you have the unique opportunity to play a pivotal role in bringing this nutty delight to Longview.
Your sponsorship helps us provide exceptional entertainment at a fraction of the cost, making Squirrel Fest accessible for all attendees. Not only will you be supporting a beloved community event, but your sponsorship also directly benefits the <a href="https://rotarylongview.org/" target="_blank">Rotary Club of Longview</a>, a vital organization dedicated to serving our community in Cowlitz County.
Join us as we celebrate squirrels and create lasting memories - become a proud sponsor of Squirrel Fest today!
Conclusion
In conclusion, Longview's Squirrel Fest is not your ordinary festival. It brings together the local community in a nutty celebration like no other. From mouthwatering food to fun-filled activities and attractions, this event offers something for everyone.
So mark your calendars and get ready to embrace the nutty delight of Squirrel Fest on August 19th, 2023 at <a href="https://www.mylongview.com/facilities/facility/details/R-A-Long-Park-19" title="R.A. Long Park Longview Civic Center" target="_blank">Longview Civic Center Park</a>. Don't miss out on the chance to experience this unique cultural event and create unforgettable memories with friends and family!2023-06-26T12:00:25-07:002023-06-26T14:57:21-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9555Cowlitz County Go Fourth Festival: Celebrating Independence Day With Fireworks And FunIntroduction
Get ready to celebrate America's Independence Day in spectacular style at the <a href="https://go4thfestival.com/" target="_blank">Cowlitz County Go Fourth Festival</a>! This annual extravaganza, held in Longview, WA from July 2nd to July 4th, offers an exciting array of fun-filled activities for families and friends alike.
Held at the picturesque Lake Sacajawea, this much-anticipated event features dazzling fireworks, thrilling carnival rides, mouth-watering food booths, and a myriad of entertainment options that are sure to make your Fourth of July unforgettable.
With the return of the beloved <a href="https://americanlumberjacks.com/schedule" title="American Lumberjack Association Timber Show" target="_blank">Timber Show</a> and an opportunity to support local vendors, there's no better way to spend your holiday weekend than embracing all that this incredible festival has to offer.
Key Takeaways
The Cowlitz County Go Fourth Festival is one of the oldest and largest Fourth of July celebrations in Washington State, offering a diverse lineup of events for families and friends to enjoy.
Highlights include dazzling fireworks, colorful <a href="https://go4thfestival.com/parade-information" title="Go 4th Festival Parade Information" target="_blank">parades</a> with floats and marching bands, live music performances, thrilling <a href="https://go4thfestival.com/funtastic-carnival" title="Funtastic Carnival Rides" target="_blank">carnival rides</a> and games, mouth-watering <a href="https://go4thfestival.com/food-vendor-spotlight-1" title="Go 4th Festival Food Booths and Vendors" target="_blank">food booths from local vendors</a> and artisans.
Visitors can also browse through numerous artisan stands showcasing unique creations such as handmade jewelry or paintings. Local competitions like American Lumbermen's Association Timbersport Competition or <a href="https://go4thfestival.com/cardboard-boat-regatta" title="Go 4th Festival Cardboard Boat Regatta" target="_blank">Cardboard Boat Regatta</a> add extra excitement for attendees.
Other similar festivals across Washington State offer affordable or free admission fees to celebrate America's independence with fun-filled activities – making it possible for everyone to join in on the festivities.
The History And Overview Of <a href="https://go4thfestival.com/" target="_blank">Cowlitz County Go Fourth Festival</a>
The Cowlitz County Go Fourth Festival was founded in the 1960s, making it one of the oldest and largest Fourth of July celebrations in Washington State.
Founding And Development Of The Festival
The Cowlitz County Go Fourth Festival has a rich history that adds to the excitement and charm of this annual Independence Day celebration. Since its inception, the festival has grown tremendously, evolving into a much-anticipated event for local residents and visitors alike.
One notable aspect contributing to the development of the Go Fourth Festival is its dedicated committee. Over time, a team of passionate individuals formed this group committed to organizing and enhancing each year's festivities every July 4th in Longview, Washington.
Their collaboration and determination have led this once-small gathering at Lake Sacajawea into becoming a full-scale family-oriented festival, attracting thousands from across Southwest Washington.
The Festival's Mission And Significance
The Cowlitz County Go Fourth Festival is more than just an annual Independence Day celebration in Longview, Washington - it's a symbol of community pride and togetherness.
Thanks to its rich history and growing popularity, the Go Fourth Festival has become one of the most anticipated events in Cowlitz County. As it continues to expand each year with new activities like the <a href="https://americanlumberjacks.com/schedule" target="_blank">American Lumberman's Association Timbersport Competition</a> or the fun-packed Cardboard Boat Regatta on Lake Sacajawea, this remarkable celebration ensures everyone can find something they enjoy.
Schedule Of Events
The Cowlitz County Go Fourth Festival boasts a jam-packed <a href="https://go4thfestival.com/daily-event-schedule" title="Go 4th Festival Schedule of Events" target="_blank">schedule of events</a> catered to the local community's entertainment and enjoyment. Kicking off the celebration, the beloved Go Fourth Festival Parade starts at 10:00 AM on July 4th, with assembly and line-up beginning at 8:15 AM.
In addition to this spirited march down memory lane, other notable happenings throughout the festival include <a href="https://go4thfestival.com/entertainment-%26-prizes" title="Go 4th Festival Live Music Performances" target="_blank">live music performances</a> by talented artists from various genres – providing a soundtrack for all ages during the day.
Once dusk sets in, your eyes will be treated to an awe-inspiring fireworks display over Lake Sacajawea – truly marking Independence Day with a bang. But that's just scratching the surface! The festival also hosts engaging activities such as food booths showcasing delicious culinary creations from local vendors and artisans; thrilling Funtastic fair rides guaranteed to bring out adventurous spirits; captivating arts & crafts exhibits; Family Oriented Timbersport competitions organized by American Lumberman’s Association; Cardboard Boat Regatta races in Longview WA that are sure to make waves among attendees - not forgetting about rewarding creative souls through their annual Button Contest offering attractive prizes for winners.
Highlights Of The Festival
The festival offers a diverse lineup of events including the main attraction, fireworks, parades, contests, concerts, BBQs and picnics, carnival rides and games, food, and artisan vendors.
Fireworks: The Main Attraction
One of the most exciting and eagerly anticipated parts of the Cowlitz County Go Fourth Festival is undoubtedly the fireworks display. Every year, thousands of spectators gather at Lake Sacajawea to witness the sky light up with a stunning array of colors and patterns.
The sheer size and scale of these pyrotechnics are truly breathtaking, making for an unforgettable experience for all those in attendance. Additionally, some years when weather conditions aren't ideal or there are concerns about safety, a laser show has been put on in place of traditional fireworks.
Parades, Contests, And Concerts
The Cowlitz County Go Fourth Festival is home to a variety of activities, including parades, contests, and concerts that will keep you entertained throughout Independence Day.
The parade features colorful floats, festive music, and lots of patriotic displays in red, white, and blue.
For those looking to participate in friendly competitions, the festival has several events such as American Lumbermen's Association Timbersport Competition and Cardboard Boat Regatta where families can join together for some fun-filled moments.
Additionally, there are live concerts featuring local bands providing lively entertainment all day long.
BBQs And Picnics
During the Cowlitz County Go Fourth Festival, BBQs and picnics are a popular part of the celebration. Picnic grounds are available for attendees to set up their own food spreads, making it easy for families to enjoy a meal together while taking in all the festival sights and sounds.
And don't worry if you forget your picnic basket - there are also plenty of food vendors on site offering everything from hot dogs and burgers to funnel cakes and kettle corn.
Carnival Rides And Games
The Cowlitz County Go Fourth Festival is an event filled with fun and excitement. With approximately 12 carnival rides, including a Ferris wheel, bumper cars, a fun house, and a merry-go-round, the festival promises to be an incredible family experience.
The Funtastic fair also features games that cater to kids and adults alike — from classic ring tosses to high-tech arcade games.
If you're planning on attending the festival don't miss out on this part of it; there are all sorts of entertaining activities for people of different ages with varying interests!
Food And Artisan Vendors
At Cowlitz County Go Fourth Festival, visitors can satisfy their cravings with a variety of delicious food and drink options from vendors. Whether you're in the mood for classic carnival treats like cotton candy and funnel cakes or something more substantial like burgers, hot dogs, or pizza - there's no shortage of tasty options to choose from.
Alongside the food vendors are artisan booths where local artists and craftspeople showcase their unique creations.
You might want to try out some juicy BBQ ribs with tangy sauce paired with ice-cold lemonade.
So get ready for an unforgettable day filled with good eats at Cowlitz County Go Fourth Festival.
Tips For Enjoying The Festival
Arrive early to secure good parking spots and avoid crowds. Bring sunscreen and bug spray for protection against the sun and insects. Pack snacks and water to stay hydrated throughout the day.
Wear comfortable clothing and shoes to navigate through festival activities with ease. Learn about parking options and transportation in advance to make traveling more convenient.
Read on for more helpful tips on how you can make the most of this year's Cowlitz County Go Fourth Festival!
Arrive Early
If you want to make the most out of your Cowlitz County Go Fourth Festival experience, it's highly recommended that you arrive early. This is because there will be thousands of people attending the event and parking can be a bit challenging.
By arriving early, you can park closer to the festival grounds and avoid walking long distances in hot weather.
Arriving early also gives you more time to explore all that the festival has to offer. You can start by checking out some exciting events like The American Lumberman's Association Timbersport Competition or joining in on the <a href="https://www.facebook.com/LongviewCardboardBoatRegatta/" target="_blank">Cardboard Boat Regatta Longview WA</a> race.
Additionally, getting there before the crowds arrive means shorter lines at food booths and vendors allowing for easier access around <a href="https://funtasticshows.com/" target="_blank">Funtastic carnival rides</a> and games or going through various art crafts exhibits offered at Go Fourth Festival.
Bring Sunscreen And Bug Spray
Make sure to pack sunscreen and bug spray when attending the Cowlitz County Go Fourth Festival. With festivities taking place outdoors around Lake Sacajawea, it is important to protect your skin from harmful UV rays and pesky bugs.
Bug spray will also come in handy for enjoying fun activities without being bothered by mosquitoes or other insects. While there will be plenty of food options available, packing drinks and snacks can save you money and help keep you hydrated throughout the day.
Pack Snacks And Water
Staying hydrated and fueled up is crucial when attending the Cowlitz County Go Fourth Festival. With so many exciting events and activities, it's easy to get caught up in the fun and forget to drink enough water or eat a snack.
To avoid any discomfort, make sure to pack plenty of water bottles and snacks that will keep you energized throughout the day. Granola bars, fresh fruit, and trail mix are excellent options for quick bites on the go.
Wear Comfortable Clothing And Shoes
To fully enjoy the festival, it's important to wear comfortable clothing and shoes. The Cowlitz County Go Fourth Festival takes place at Lake Sacajawea, which means there will be a lot of walking involved.
When getting dressed for the festival, choose footwear that can handle uneven terrain as well as crowds. Sneakers or closed-toe sandals are great options.
By wearing comfortable clothing and shoes, you'll be able to fully experience all of the exciting activities at Go Fourth Festival without worrying about blisters or discomfort on your feet!
Parking Options And Transportation
Getting to the Cowlitz County Go Fourth Festival is easy, but parking can be a bit tricky. There are several free parking areas within walking distance of Lake Sacajawea where the festival takes place, but they tend to fill up quickly.
It's essential to arrive early if you want to snag a spot close by.
However, taking <a href="https://rctransit.org/" title="River Cities Transit" target="_blank">public transportation</a> may be your best bet. The local transit authority offers special bus service during the festival, making stops along key routes throughout Longview and Kelso.
This year's schedule has yet to be released, so check ahead for details on pick-up locations and times.
Following Festival Rules And Regulations
It is important for everyone attending the Cowlitz County Go Fourth Festival to follow all festival rules and regulations. This ensures a safe and enjoyable experience for all attendees.
Visitors are reminded that the illegal use or possession of fireworks is subject to penalties in accordance with local regulations.
To make sure you have a great time at the festival while following the guidelines set by organizers, remember to abide by posted signs, obey any requests from festival staff or volunteers, and avoid bringing alcoholic beverages onto event grounds.
Conclusion: Celebrating America's Independence With Fun And Fireworks At Cowlitz County Go Fourth Festival.
Don't miss out on the excitement and festivities at this year's Cowlitz County Go Fourth Festival! Celebrate America's independence with an array of fun events, food vendors, and live performances.
Make sure to arrive early, wear comfortable clothing and sunscreen, and follow festival rules.2023-06-21T17:07:23-07:002023-06-26T12:00:19-07:00Matthew Lahtitag:pnwr.com,2012-09-20:1825Exploring Lake Sacajawea: The Heart of Longview, Washington<a href="https://www.mylongview.com/facilities/facility/details/Lake-Sacajawea-12" title="Lake Sacajawea City of Longview">Lake Sacajawea</a>, nestled in the vibrant city of Longview, Washington, serves as a verdant oasis of leisure and entertainment for its residents. Spanning a generous 127 acres, this tranquil gem provides a myriad of year-round activities for all ages. From fishing and kayaking to outdoor movies and music festivals, there's always something exciting to do at Lake Sacajawea.
<img src="https://assets.site-static.com/userfiles/1399/image/blog/lake-sacajawea-longview-wa.jpg" width="100%" height="auto" alt="A view of the lake looking towards the foot bridge" title="Lake Sacajawea Longview, WA" /><br />Lake Sacajawea Longview, WA
A Walk through Time: The Evolution of Lake Sacajawea
The birth of Lake Sacajawea is an intriguing tale. It came into existence when the water flowing between the mighty Cowlitz River and the Columbia River took a different course. Today, the water level is preserved by pumping water from the Cowlitz River into a ditch that seamlessly merges into the northern end of the lake. The overflow then exits into a diking system, ultimately reaching the Columbia River.
Historically, the lake was privately developed into a park in 1924 and was maintained for over a decade. However, the onset of the Great Depression in the 1930s led to a transfer of ownership from the private owner to the City in 1938 due to property tax debts.
<img src="https://assets.site-static.com/userfiles/1399/image/blog/lake-sacajawea-kessler-blvd-1920s.jpg" width="100%" height="auto" alt="View of Kessler Blvd and Lake Sacajawea 1920s" title="Kessler Blvd Lake Sacajawea 1920s" />Photo Courtesy of the <a href="http://www.co.cowlitz.wa.us/museum/" title="Cowlitz County Historic Museum" target="_blank">Cowlitz County Historical Museum</a>
The City took over the responsibility of maintaining the lake, but the maintenance efforts were affected by the start of World War II in 1939. It wasn't until the war ended in 1945 that the City redirected its focus towards maintaining the lake. The lake underwent a chemical treatment in 1948 and 1949 to eliminate the indigenous carp that had populated it. By 1950, the City replenished the lake with 40,000 trout.
The lake faced another challenge in 1952 with the emergence of algae growth, low oxygen levels, and stagnation. To combat these issues, the City began pumping water from the Cowlitz River into the lake from 1953 onwards.
Embrace the Outdoors: Activities at Lake Sacajawea
The lake is girdled by the <a href="https://www.mylongview.com/DocumentCenter/View/420" title="Lake Sacajawea Trail Map" target="_blank">Lake Sacajawea Trail</a>, a 3.6-mile lighted gravel trail that is a favorite among residents for walking, jogging, and biking. The trail is beautifully adorned with lush landscaping and gardens, making it a visual treat for all who traverse it.
Lake Sacajawea is a haven for fishing enthusiasts. Anglers can engage in year-round fishing, seizing the chance to catch largemouth bass, trout, bluegill, and yellow perch. The lake also hosts an annual fishing derby for children, organized by Longview Parks and Recreation.
Boating and kayaking are popular activities on the lake. Residents can use electric boat motors of three horsepower or less. However, boats must be carried from the street down to the lake.
Families and friends can enjoy picnics at the various shelters and playgrounds scattered throughout the park. Whether it's enjoying a meal under a covered area, at an open picnic table, or on a blanket spread out on the lawn, the options are plentiful. Playgrounds can be found at the Hemlock Plaza, 17th & Nichols Blvd, and the Elk's building.
Lake Sacajawea is also a preferred venue for <a href="https://www.mylongview.com/DocumentCenter/View/422/Wedding-Area-Map-PDF?bidId=" title="Lake Sacajawea Wedding Map" target="_blank">weddings</a>. Several picturesque locations around the lake are available for booking. Residents can contact <a href="https://www.mylongview.com/196/Recreation" title="Longview Parks and Recreation" target="_blank">Longview Parks and Recreation</a> for information on holding a wedding or event at the park.
<img src="https://assets.site-static.com/userfiles/1399/image/blog/lake-sacajawea-trail.jpg" width="100%" height="auto" alt="View of the Lake Sacajawea Trail" title="Lake Sacajawea Trail" />Lake Sacajawea Trail
Cultural Celebrations and Events at Lake Sacajawea
Lake Sacajawea is home to the exquisite <a href="https://www.mylongview.com/Facilities/Facility/Details/-17" title="Japanese Garden Longview WA" target="_blank">Japanese Garden</a>, a brainchild of the former Longview Parks Superintendent, Al George. The authentic garden features a stunning array of plants, trees, ponds, and aesthetic structures.
The annual Movies at the Lake event is a big hit among residents. Usually held in August, the festivities commence at 6 pm, offering games, prizes, and delicious food. As the sun sets, a movie screening takes place at Martin's Dock, under the starlit sky.
Concerts at the lake are a beloved tradition during the summer months of July and August. Every Thursday, from 6 pm to 8 pm, visitors can relish live music while enjoying a picnic dinner. Local vendors also sell a variety of food and drinks.
The <a href="https://go4thfestival.com/" title="Go Fourth Festival Cowlitz County" target="_blank">Go Fourth Festival</a> is the largest event held at Lake Sacajawea each year. This Independence Day celebration kicks off on the 2nd of July and concludes on the 4th of July with a breathtaking fireworks display, the largest in Cowlitz County.
<img src="https://assets.site-static.com/userfiles/1399/image/blog/japanese-gardens-walking-path.jpg" width="100%" height="auto" alt="View of the walking path through the Japanese Garden" title="Japanese Garden Lake Sacajawea" />Japanese Garden Lake Sacajawea
<img src="https://assets.site-static.com/userfiles/1399/image/blog/japense-garden-bridge.jpg" width="100%" height="auto" alt="The bridge to the Japanese Garden Longview" title="Japanese Garden Bridge Lake Sacajawea" />Japanese Garden Bridge
<img src="https://assets.site-static.com/userfiles/1399/image/blog/martins-dock-foot-bridge-lake-sacajawea.jpg" width="100%" height="auto" alt="View of Martin's Dock and Foot Bridge Lake Sacajawea" title="Martin's Dock Lake Sacajawea" />Martin's Dock Lake Sacajawea
Living by the Lake: The Residential Experience
Four distinct residential neighborhoods surround Lake Sacajawea: the <a href="https://www.pnwr.com/old-west-side-longview-real-estate-homes-for-sale/" title="Old Westside Neighborhood Longview Real Estate for Sale">Old</a> & <a href="https://www.pnwr.com/new-west-side-real-estate-homes-for-sale/" title="New Westside Neighborhood Longview Real Estate for Sale">New</a> West Side, <a href="https://www.pnwr.com/olympic-real-estate/" title="Olympic Neighborhood Longview Real Estate for Sale">Olympic</a>, and <a href="https://www.pnwr.com/st-helens-real-estate/" title="St Helens Neighborhood Longview Real Estate for Sale">St. Helens</a>. Prospective buyers will primarily find single-family residential homes, with a sprinkling of multi-family and condominium units.
While none of the homes are considered lakefront, residents living on Kessler and Nichols Blvd are privy to serene lake views. A short walk across the street opens up a world of recreational activities that Lake Sacajawea has to offer.
The Old West Side neighborhood, situated on the northeast side of the lake, is the closest to <a href="https://lowercolumbia.edu/" title="Lower Columbia College LCC" target="_blank">Lower Columbia College</a>. The neighborhood is characterized by older, often updated, and well-maintained homes. The area is well-served by public transportation, making it conveniently accessible from anywhere in the city.
<img src="https://assets.site-static.com/userfiles/1399/image/blog/old-west-side-longview-cherry-blossoms.jpg" width="100%" height="auto" alt="Old West Side Neighborhood Longview, WA" title="Old West Side Neighborhood" />The Old West Side Neighborhood Longview
Lake Sacajawea, with its rich history, diverse recreational activities, and beautiful residential neighborhoods, truly serves as a cornerstone of the Longview community. It's not just a lake; it's a way of life.
Real Estate for Sale near Lake Sacajawea2023-06-21T12:18:00-07:002023-06-22T14:47:16-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9566Northwest MLS brokers report improving inventory and year-to-date gains in sales, pricesKIRKLAND, Washington (June 5, 2023) – 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. Brokers at Northwest Multiple Listing Service (NWMLS) welcomed the uptick in activity but say rising interest rates are crimping activity.
Northwest MLS statistics for May show the area-wide median price of $615,000 is down 6.8% from the year-ago figure of $660,000, but it’s up nearly 10.4% since January when the median sales price was $557,250. The figures reflect sales of single-family homes and condominiums across 26 counties.
“Median prices have continued to decline year-over-year in the overall NWMLS service area,” said John Deely, executive vice president of operations at Coldwell Banker Bain. “Following a national trend, our market pricing peaked in April/May of 2022 with a steady decline through the end of the year,” he noted, adding, “However, 2023 has seen slow and steady growth in median prices. As an example, King County residential has had an increase of 16.5% YTD for 2023.
Buyers waiting for prices to come down will be disappointed based on current trends.”
<img src="https://assets.site-static.com/userfiles/1399/image/blog/median-sales-price.jpg" width="443" height="250" alt="Median Sales Prices Northwest MLS Market Snapshot Report" />
House-hunters could choose from 9,079 active listings in the MLS database at the end of May, the highest level since December. Compared to a year ago, there are about 3.2% more listings. Despite the increase, inventory remains tight with only 1.44 months of supply.
The selection was even more limited across the four-county Puget Sound region, with Snohomish County reporting about 3.5 weeks of supply (0.88 months of inventory). Pierce County was slightly better at 1.09 months, followed by King (1.26 months) and Kitsap (1.3 months). Industry experts consider four-to-six months to be a balanced market.
“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,” noted J. Lennox Scott, executive officer at John L. Scott Real Estate. “However, for homes in the more affordable and mid-priced range, we are experiencing an elevated level of Sales Activity Intensity™” (an index that company uses for the percentage of new resale listings going under contract in the first 30 days on the market).
Scott believes the sales intensity is “powering the normal seasonal upward trend of the region’s median home price that happens each year during the spring months.”
Brokers added 9,247 new listings during May and reported 8,120 pending sales (mutually accepted offers). The new listings volume was well below the year-ago total of 13,075, but easily surpassed April’s figure (7,303) and was the highest monthly number since September when brokers added 9,422 new listings.
“Buyers remain selective with lifestyle changes as their main consideration,” reported Dean Rebhuhn, owner at Village Homes and Properties. He said Kittitas County is attractive to westside buyers with good prices and availability.
Northwest MLS data show the median price of homes that sold last month in Kittitas County was $560,000, well below the figure of $816,750 for sales in King County. Kittitas currently has about 3.4 months of supply, whereas in King County there is less than 1.3 months of supply.
Last month’s pending sales volume (8,120) was down 23% from a year ago, but up nearly 13.8% from April’s total (7,137). Twenty-two of the 26 counties in the MLS report experienced double- digit declines compared to a year ago. All but four counties improved on April’s pending sales.
May’s pending sales of single family homes and condominiums (combined) marked the highest monthly total since August when brokers notched 9,552 mutually accepted offers.
Closed sales followed a similar pattern. Brokers reported 6,310 completed transactions last month, down 30.6% from a year earlier, but up 18.2% when compared to April. Last month’s closings marked the highest number since October’s total of 6,464.
The year-over-year drop in median prices, at -6.8%, was the smallest decline since February when YOY prices declined 1.7%. Compared to January, all but four of the 26 counties in the report show year-to-date price gains, including 12 counties with double-digit increases.
6/2022
1/2023
5/2023
% change since Jan
SFH+Condo
$650,000
$557,250
$615,000
10.36%
SFH only
$675,000
$579,000
$636,000
9.84%
Condo only
$485,000
$424,000
$475,000
12.03%
Condo inventory is 22.6% larger than a year ago, with 1,217 active listings offered for sale as of the end of May. New listings (1,177) outpaced pending sales (1,037). Last month’s pending sales were down 19.1% from a year ago, but volumes have risen steadily since December. Last month’s number of mutually accepted offers was the first time brokers topped the 1,000 mark since August 2022.
Closed sales of condos were also down from year-ago totals (off 30.6%), as were prices (down 5%). The median price on last month’s closed sales of condos was $475,000. Sales prices are up 12% since January.
Good weather is bringing buyers out to tour homes, according to Rebhuhn, and some of them are lured by seller incentives such as pre-inspections and offers of homeowner warranties. “We’re seeing cash offers on well-priced homes,” he stated.
Brokers and economists say rising interest rates are deterring some buyers.
“Mortgage rates jumped this week, as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike,” said Sam Khater, Freddie Mac’s chief economist. “Although there has been a steady flow of purchase demand around rates in the low to mid six percent range, that demand is likely to weaken as rates approach seven percent.”
“With interest rates moving into the 7% range, we are seeing buyers locking in rates, buying down the rate, and negotiating seller-paid closing costs to take some of the sting out of interest rate volatility,” stated Deely.
According to Freddie Mac, the average rate on a 30-year fixed mortgage jumped to 6.79% from 6.39% the first week of May.
As rates approach the 7% benchmark, Nadia Evangelou, senior economist and director of real estate research for the National Association of REALTORS®, estimates 5.5 million households continue to be priced out of the market compared to a year ago. “Although there are fewer buyers, more than one-third of properties are sold above their list price due to limited inventory, especially of homes that first-time buyers can afford to buy.”
Northwest MLS data show the system-wide sale price to list price ratio on single family homes that sold last month was 100.9%, with nine counties reporting ratios above 100%, meaning buyers paid more than the asking price. For condos, the system-wide selling price to listing price ratio was 100.1%. Eight counties had ratios of 100% or higher.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2023-06-07T11:39:00-07:002023-06-22T11:49:56-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9565“We’re moving in a positive direction” broker says in comments about April statistics from Northwest MLSKIRKLAND, Washington (May 4, 2023) – Market dynamics are influencing adjustments in housing prices, suggested an officer at Northwest Multiple Listing Service, but with “very constricted” inventory, he said homes that are well priced continue to receive multiple offers.
Commenting on the latest statistics from Northwest MLS, Frank Leach, vice chairperson of the MLS board of directors and the broker/owner at RE/MAX Platinum Services in Silverdale, said despite limited inventory (about 1.5 months of supply overall), it is an “excellent market.” As summer approaches, Leach expects to see increased activity with inventory “being snapped up as it comes onto the market and savvy buyers taking advantage of softening interest rates.”
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.
Brokers reported 7,137 pending sales of single-family homes and condos during April, down nearly 27% from a year ago, but notching the highest volume so far this year, edging out March by one transaction. Pending sales are up more than 23% from January’s total (5,776).
Closed sales slipped 36%, from the year-ago total of 8,344 to last month’s total of 5,338. Compared to January’s figure of 3,264 sales, April’s completed transactions surged 63.5%.
The median price for last month’s sales of single-family homes and condos across the 26 counties in the report was $603,250, down about 8.6% when compared to twelve months ago. When compared to January’s median price of $557,250, prices are up nearly 8.3%. April marked the fourth consecutive month of rising prices.
In King County, which accounted for 35% of last month’s closed sales, the median price of
$790,244 fell 10.2% from the year earlier price of $880,000. A comparison with January shows prices are up 9.3%.
J. Lennox Scott, company executive officer at John L. Scott Real Estate, noted fewer resale listings are making it to the market. “The supply of housing remains limited due to a persistent shortage of available homes as fewer homeowners are putting their homes on the market after locking in low home mortgage interest rates during the pandemic.”
Scott said the limited supply results “in a return to multiple offers and the restart of premium pricing – especially in the more affordable, mid-price and into the upper-end price points.”
Northwest MLS brokers added 7,303 new listings to the database during April. That total was down from both March, when they added 7,904 new listings, and the same month a year, when they added 11,681 new listings. On a percentage basis, the year-over-year drop was 37.5%.
With slower sales, total supply improved compared to a year ago.
At the end of April, there were 8,114 active listings in the NWMLS database, an increase of 1,600 from the year-ago supply for a gain of nearly 24.6%.
“When looking at the inventory of single-family homes (excluding condos), only one county has more than six months of supply (San Juan),” said John Deely executive vice president of operations at Coldwell Banker Bain. A typical balanced market is considered between 4-to-6 months, he noted.
Continuing, Deely acknowledged “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.”
To illustrate his point, Deely pointed to King County. “In King County residential (excluding condos), the median price change year-over-year is down 12%. This year, the median price has been going up steadily every month. Year to date, the median price is up 12%. From March to April, it’s up over 4%. We are moving in a positive direction,” he stated.
Northwest MLS figures show the median price for single-family homes that sold last month in King County was $875,000; a year ago, it was $995,000. In January, the median price was
$781,098.
“Proper pricing is the important factor for sellers to consider in attracting buyers,” emphasized Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. “First-time homebuyers are very price sensitive, and they are hurt by increasing mortgage rates.”
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. (On Wednesday, the Federal Reserve raised its key interest rate by a quarter-point to the highest level in 16 years. That was the 10th straight hike of the current cycle.)
Even with the market still experiencing an inventory shortage, Rebhuhn said buyers are looking for homes, with lifestyle decisions continuing to drive the market.
“Motivated sellers who recognize today’s market conditions with prices down about 10% from last year are attracting buyers,” Rebhuhn reported. “We do see a vibrant spring market for both buyers and sellers.”
Windermere Chief Economist Matthew Gardner believes sellers “are getting a little more comfortable with the market,” noting his analysis of data shows median listing prices are rising in most areas compared to the previous quarter. “If listing prices continue to rise, one can surmise that home prices will follow suit.”
The April report from Northwest MLS shows seven counties had year-over-year price increases (Adams, Clallam, Columbia, Ferry, Jefferson, Pacific, and San Juan). Five counties had double- digit price drops. Prices were unchanged in Lewis County.
In Kitsap County, prices slipped about 8.7% from a year ago, but are up 4.7% since January. “There continues to be heavy pressure on the market,” Leach reported. “Many buyers are looking for their replacement home before selling their current home,” he stated, adding, “Don’t expect a burgeoning inventory as it will go as fast as it comes onto the market.” That’s due in part to that county’s highly mobile military population.
Pending sales in Kitsap County fell 18.8% -- much less than nearby counties. Mutually accepted offers were down more than 27% in both King and Pierce counties and down nearly 34% in Snohomish County.
Leach attributes the slower pace of sales in Kitsap County to both interest rates and the addition of several new apartments, which he described as “a safe haven for those not ready to buy.” He noted many of the newer complexes are offering incentives to attract renters.
Commenting on mortgage rates, Gardner said rates in the first quarter of 2023 were far less volatile than last year. “It appears that buyers are jumping in when rates dip, which was the case in mid-January and again in early February.”
Gardner expects rates will continue to move lower with occasional spikes, and that they will hold below 6% in the second half of this year. Citing factors that favor home buyers, but also factors that favor sellers, he said he is “moving the needle towards a balanced market, but one that ever so slightly favors sellers.”
Windermere’s economist said he is “not seeing any signs of panic in the market.” Gardner also said the probability of a national recession this year is now fifty-fifty. “I do not see any reason for buyers to lose confidence in their housing decisions based purely on economic factors.”
Some industry-watchers suggest easing inflation could bode well for the housing market. Inflation fell to 5% in March, the lowest rise in nearly two years. “With inflation showing some signs of slowing, mortgage rates could come down,” suggested Greg McBride, Bankrate’s chief financial analyst.
Kevin Graham, senior blog writer for Rocket Companies and Rocket Mortgage, the nation’s largest home lender, explained mortgage rates and the federal funds rate aren’t directly correlated, but “they do tend to follow the same general direction.” For buyers, rate hikes mean they would likely qualify for a lower loan amount, have higher mortgage payments, and may have difficulty finding homes in their price range.
“Some buyers may be temporarily priced out of the market,” Graham wrote. The impact of higher interest rates may be more acute for first-time buyers, he noted, “because they don’t have the money from the sale of a home to offset a lower loan amount with a higher down payment.”
No one likes higher mortgage rates, Graham stated, but added, “they’ll always be lower than the interest rate you could get on a credit card.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2023-05-08T11:32:00-07:002023-06-22T11:38:51-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9563Brokers around Washington state say spring market is “finally showing up”KIRKLAND, Washington (April 6, 2023) – Real estate brokers around Washington state say the market is moving in a positive direction with the spring market “finally showing up in March.
Newly-released statistics from Northwest Multiple Listing Service show declines in some key metrics for March compared to 12 months ago, but steady gains when compared to February and January.
“From February to March, key indicators, including new and active listings, pending sales and closed sales are trending upward,” noted John Deely, executive vice president of operations at Coldwell Banker Bain. Areawide prices have also increased since January, up nearly 5.9%.
Brokers added 7,904 new listings during March across the 26 counties in the Northwest MLS report. That total is down nearly 30% from a year ago, but up more than 51% from February, when brokers added 5,231 new listings of single family homes and condominiums.
Said Deely, “Despite the year-over-year (YOY) 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,” reported Deely.
“Buyers are out in droves right now looking for reasonably priced homes,” according to Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale. “Open house activity is up and we continue to see multiple offers on well-priced homes, with seller concessions starting to wane,” he stated.
NWMLS figures show prices in Kitsap County are up 4.7% since January. “The market is hitting an equilibrium,” he suggested. He also reported an increase in contingent sales where sellers must sell in order to buy their next home.
The combination of newly added listings and slower pace of sales contributed to a buildup of inventory during March, but supplies are still limited in many areas.
At the end of March, there were 8,007 active listings in the MLS database, up more than 73% from a year ago and up about 10.7% from February’s selection. Even with those gains, the supply, measured by months of inventory, was 1.38 months (less than six weeks), well below the four-to-six month level that industry experts say indicates a balanced market.
Three counties – Pierce, Snohomish and Thurston – all had less than one month of supply.
“We are experiencing a frenzied spring housing market,” remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Although fewer new listings are coming on the market and fewer overall transactions, the market is following a typical seasonal pattern,” he added, noting he expects to see increases in new listings over the coming months. “The luxury market is seeing strong buyer activity,” Scott also reported.
Windermere Chief Economist Matthew Gardner also commented on the uptick in activity. “The spring housing market, which usually kicks off in February, finally showed up in March when new listings increased by significant numbers, month over month.”
“While total inventory in the King, Snohomish and Pierce counties region grew over 14% from February, the number of homes for sale in this tri-county area was down 40% when compared to March 2019 (pre-pandemic),” Gardner observed.
Commenting on prices, Gardner said, “Despite the growing number of available homes for sale, sellers in King County are holding firm, with listing prices increasing by over 5% compared to February. In Snohomish County, listing prices were up just shy of 5%, and they were flat in Pierce County.”
Dean Rebhuhn, owner of Village Homes and Properties in Woodinville, said March had “good sales activity on well-priced homes.” He believes interest rates are not the deciding factor in purchases. It’s prices, he suggests, proclaiming, “The spring real estate market is good!”
Pending sales jumped more than 14.5% from February, rising from 6,230 mutually accepted offers to last month’s systemwide total of 7,136. Compared to a year ago, pending sales are down 29%, with higher interest rates believed to be a factor in the slower pace.
Rebhuhn said they are seeing purchasers use bridge loans and home equity loans to secure financing. He also commented on the influx of buyers from Oregon, Texas, and Utah, drawn by jobs in technology, health care and manufacturing (Boeing). “Even with some tech firms trimming their workforce, other employers are hiring in high demand areas.”
“All signs point toward a rather unusual market through the end of 2023,” reported Dick Beeson, managing broker at RE/MAX Northwest in Tacoma/Gig Harbor. “Lowering prices, lowering interest rates, and longer days on the market signal some of the unpredictability of the current market.”
Beeson said buyers want to buy now because they see modest reductions in prices and rates. “Sellers want to sell now before prices fall even further and there’s less competition,” he stated, adding, “There’s a paradox not seen in prior markets where low inventory generally brings higher prices.”
Prices overall were down about 7.5% from a year ago, dropping from $638,000 to $590,000, with considerable variation across the 26 counties in the NWMLS report:
Year-over-year prices increased in eight counties (Clallam, Clark, Columbia, Cowlitz, Ferry, Jefferson, Kittitas, and Walla Walla).
Four counties had price drops of less than 2% (Adams, Mason, Skagit and Thurston).
Four counties had double-digit drops in prices compared to a year ago (Douglas, Grant, Okanogan, and Snohomish).
Brokers reported 5,817 closed sales last month, a drop of about 27% from the year ago total (7,989). Compared to February, closed sales jumped more than 36.6%.
Commenting on the year-over-year decline in prices, Gardner said he expects the pace at which prices are declining will increase for the next few months, but added, “When we breach the peak price of 2022, the pace should slow again. We will likely return to positive year-over-year price growth by the end of the year.”
Leach said fluctuating interest rates are causing some would-be homebuyers to wonder “if we’ll ever see rates as low as they were – unlikely!” He noted in the early ‘80s rates went from 9% to over 18%, “and we continued to see sales. This economy is not stopping as a result of 6%-to-7% interest rates. Nor is the increase in equity for those who own homes.”
“We may see more creative financing,” Leach said, adding, “We already see a lot of loan programs that all but disappeared now reappearing in this market.”
Sam Khater, Freddie Mac’s chief economist, said economic uncertainty continues to bring mortgage rates down. In a March 30 news release, Freddie Mac reported the 30-year fixed-rate mortgage (FRM) averaged 6.32%, down from the prior week when it was 6.42%. A year ago, the 30-year FRM averaged 4.67%.
“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,” Khater said.
Chief economist Danielle Hale at Realtor.com agreed. “Amid fewer new choices on the market and still rising home prices, home shoppers have shown they are very rate sensitive, only jumping back in the market when rates dip, and so what happens with rates this spring will likely play a strong role in determining whether the housing market bumps along or picks up speed this year.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2023-04-10T11:16:00-07:002023-06-22T11:26:23-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9094Spring Home Improvement Projects That Can Boost Your Home's ValueSpring is the perfect time to embark on home improvement projects that will increase the value of your home. From sprucing up the exterior to adding new appliances and fixtures, there are plenty of ways to give your home a fresh look. In this article, we'll discuss the top spring home improvement projects that can boost your home's value.
1. Enhance Your Curb Appeal
The exterior of your home is the first thing potential buyers see, so it's important to make a good impression. Some easy and affordable ways to enhance your curb appeal include:
Repainting your front door
Installing new house numbers
Adding potted plants and flowers
Power washing your home's exterior
Updating your mailbox
2. Update Your Landscaping
A well-maintained lawn and garden can significantly increase the value of your home. Consider the following spring landscaping projects:
Planting new shrubs and trees
Laying new mulch and creating defined garden beds
Installing a new sprinkler system
Adding outdoor lighting
3. Install New Appliances
Upgrading your appliances not only makes your home more functional but can also add value. Consider updating the following:
Kitchen appliances, such as the refrigerator, stove, and dishwasher
Water heater
HVAC system
Washer and dryer
4. Replace Your Front Door
Your front door not only affects your home's curb appeal but also its energy efficiency. Consider replacing your front door with a new one that is insulated and energy-efficient.
5. Upgrade Your Bathroom
The bathroom is one of the most important rooms in the house when it comes to selling your home. Some easy and affordable ways to update your bathroom include:
Replacing the vanity and sink
Installing new light fixtures
Updating your showerhead and faucets
Adding a fresh coat of paint
6. Add a Deck or Patio
Outdoor living spaces are highly desirable and can add significant value to your home. Consider adding a deck or patio to your backyard for a space to entertain guests and enjoy the outdoors.
7. Refinish Your Hardwood Floors
Hardwood floors are a popular feature among homebuyers. Consider refinishing your floors to make them look like new again.
8. Add Insulation
Adding insulation to your attic, walls, and floors can improve your home's energy efficiency, making it more appealing to potential buyers.
9. Paint Your Interior
A fresh coat of paint can make your home feel like new again. Consider updating the paint in your main living spaces, such as the living room, dining room, and bedrooms.
10. Update Your Lighting
Good lighting can make a significant impact on your home's ambiance. Consider updating your lighting fixtures, adding dimmer switches, and installing under-cabinet lighting in the kitchen.
Conclusion
Spring is the perfect time to tackle home improvement projects that can increase your home's value. From enhancing your curb appeal to updating your appliances and fixtures, there are plenty of ways to give your home a fresh look. By following these tips, you'll be on your way to a more valuable and comfortable home.
FAQs
Do all home improvement projects add value to your home? <br />Not necessarily. Some home improvement projects may not add significant value to your home, while others can increase it significantly. It's important to do your research and choose projects that will offer a good return on investment.
Is it worth it to upgrade your appliances before selling your home?<br />Yes. Upgrading your appliances not only makes your home more functional but can also add value. Buyers are often willing to pay more for a home with updated and energy-efficient appliances.
Can landscaping really increase the value of your home?<br />Yes. A well-maintained lawn and garden can significantly increase the value of your home, as it enhances the overall appearance of the property.
Are there any home improvement projects that can decrease your home's value?<br />Yes. Overly personalized home improvements, such as bold wall colors or unique decor, may turn off potential buyers and decrease your home's value.
How long do home improvement projects typically take?<br />The timeline for home improvement projects varies depending on the project's scope and complexity. It's important to plan ahead and set realistic expectations for the project timeline.
2023-03-26T16:56:08-07:002023-06-22T14:47:34-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9050Spring Cleaning: Preparing Your Home for the Real Estate MarketSpring Cleaning: Preparing Your Home for the Real Estate Market<br /><br /><img src="https://assets.site-static.com/userfiles/1399/image/blog/SpringCleaning.jpg" width="50%" height="50%" alt="Spring Cleaning Preparing to Sell Your Home" title="Spring Cleaning Preparing to Sell Your Home" />
As the snow begins to melt and the trees begin to bud, spring is the perfect time to refresh your home and prepare it for the real estate market. Whether you're selling your home this season or simply looking to start anew, here are some tips for a successful spring cleaning.
1. Declutter and Organize
The first step to preparing your home for the market is to declutter and organize your space. Go room by room and identify items that you no longer need, use, or want. Sort them into piles for donation, recycling, and trash. This not only creates a more organized and inviting space, but it also helps potential buyers envision themselves in your home.
2. Deep Clean
A clean home is a must when selling your property. Dust and vacuum all surfaces, scrub bathrooms and kitchens, and pay extra attention to windows, floors, and carpets. You may even want to hire a professional cleaning service to ensure every inch of your home is sparkling clean.
3. Freshen Up Your Space
Spring is a time of renewal, and adding some fresh touches to your home can help make it more appealing to potential buyers. Consider adding some fresh flowers or plants, updating your bedding and towels, and even repainting or touching up scuffed walls.
4. Address Repairs and Maintenance
Before listing your home, address any necessary repairs and maintenance. Check for leaky faucets, replace burnt-out light bulbs, and make sure all appliances are in good working order. Small repairs can make a big difference in the eyes of a potential buyer.
5. Enhance Curb Appeal
First impressions are key, and enhancing your home's curb appeal can make a significant impact. Clear debris from the yard, trim bushes and hedges, and add some colorful flowers or plants to your front porch or entryway. Consider power washing your driveway and walkways for a fresh and inviting look.
Spring cleaning can be a daunting task, but it's an important step in preparing your home for the real estate market. By decluttering, deep cleaning, freshening up your space, addressing repairs, and enhancing curb appeal, you can make your home more attractive to potential buyers and increase your chances of a successful sale.2023-03-19T12:59:32-07:002023-03-19T13:08:10-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9562Brokers say housing activity seems to be trending in direction of a normal seasonal market KIRKLAND, Washington (March 6, 2023) – Open house traffic has been brisk around Western Washington, signaling the start of the spring market, suggested brokers at Northwest Multiple Listing Service. They noted softening prices are enticing some would-be buyers, while others remain on the sidelines hoping fluctuating mortgage rates will stabilize or decline.
“It’s a very interesting market, comprised of primarily serious buyers and sellers,” remarked Northwest MLS board member Mike Larson, managing broker at Compass Tacoma. “Rates and inflation appear to be under control, giving buyers a window of opportunity before things possibly get crazy again,” he added.
Newly released statistics from the MLS for February 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:
Brokers added 5,231 new listings of single family homes and condos to inventory last month, about one-third fewer than twelve months ago.
Pending sales declined 19%, from the year-ago total of 7,697 to 6,230.
Year-over-year (YOY) closed sales dropped 17.3%, from 5,147 to 4,258 transactions.
Median prices slipped 1.7% areawide, from $585,000 to $575,000.
“One could say a modicum of balance is returning to the market,” commented Dick Beeson, managing broker at RE/MAX Northwest, Tacoma/Gig Harbor. “Buyer demand remains at reasonable levels considering the high interest rate environment we’re in,” he stated. “Multiple offers are still seen on the right properties.”
Both inventory and interest rates are worrisome for some buyers, according to spokespersons with the multiple listing service.
At the end of February, the MLS report shows only 1.7 months of supply across the 26 counties in the report. While that’s an improvement from a year ago when there was only about 0.7 months of supply (about three weeks), it is down from January’s total of about 2.5 months. A supply of four-to-six months is considered a balanced market, according to the National Association of Realtors and other industry watchers.
“The February market got off to a quick start with an increased number of homes coming on the market daily as prepared buyers made their offers. Open house activity has been very active,” reported Dean Rebhuhn, owner at Village Homes and Properties in Woodinville.
“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,” observed Matthew Gardner, chief economist at Windermere Real Estate. “Furthermore,” he continued, “listings were more than 40% lower than pre-pandemic levels, suggesting that homeowners may be holding off on selling until the market stabilizes.”
Listings are not coming to the market as quickly as in recent years, reported John Deely, executive vice president of operations at Coldwell Banker Bain. “Low inventory is once again creating multiple offers where good inventory is absorbed quickly. As we move into the spring market, more competition tends to drive pricing down slightly. Sellers getting into the market now have less competition.”
The addition of 5,231 new listings during February was around 300 more than January, but down from the year-ago volume of 7,920 new listings. Last month’s additions brought the number of total active listings at month end to 7,234, more than twice the number of a year ago (3,461). However, compared with January, the selection shrunk by nearly 1,000 listings.
J. Lennox Scott, chairman and CEO at John L. Scott Real Estate, also commented on the limited selection. While fewer homes are coming on the market than in previous years, Scott expects spring will bring a seasonal increase. “New listings are selling fast, bringing back the multiple offer scenario for some properties. Unsold inventory virtually sells out in the more affordable, mid-price and into the upper end price points,” he stated. Scott recommends buyers become “buyer ready” to ensure they get the home of their choice.
Last month, 6,230 buyers were successful in having their offers accepted by sellers. That number of pending sales was a drop of about 19% from the year-ago volume (7,697) but up nearly 7.9% from January’s total of 5,776 sales. Only five of the 26 counties in the report had year-over-year gains in pending sales (Adams, Columbia, Jefferson, San Juan and Walla Walla).
Closed sales numbers for February had a similar pattern as pending sales. Brokers reported 4,258 completed transactions, a drop of about 17.3% from the same month a year ago.
Compared to January, brokers reported 994 more closings for a gain of more than 30%.
The median price systemwide on February’s closed sales was $575,000, down 1.7% from the same month a year ago, but up 3.1% from January. Year-over-year sales prices slipped in all but six counties. YOY asking prices were unchanged areawide, at $650,000, but vary widely by area.
NWMLS data for the tri-county area (King, Pierce and Snohomish counties), where about half the current inventory is located, shows more than seven of every 10 listings (71.6%) have asking prices of $600,000 or more, with nearly a third of those (31.6%) priced at $1 million or higher.
“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,” stated Gardner, adding, “I expect we will see a similar story for the next few months."
Commenting on the slowdown in home prices, Lawrence Yun, chief economist at the National Association of Realtors®, called it “welcomed, particularly as the typical home price has risen 42% in the past three years.”
Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale and a member of the NWMLS board of directors, pointed to rising interest rates as a factor in slowing the market somewhat, but said people are still “making the move and looking at creative financing until the rates level out. Open house traffic has been brisk.”
“Many homebuyers are making their buying decisions now while inventory is available, and they’ll refinance at a later date,” Leach remarked. He noted the midrange market continues to see multiple offers for homes that are priced correctly.
Larson said interest rates are crimping listing activity. “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.”
Gardner agreed. “There are homeowners who are choosing not to sell so they don’t lose the historically low interest rate they have on their current mortgage.”
Fluctuating rates likely contributed to recent sales activity, suggested Gardner. “What is interesting is that home prices rose between January and February which tells me that buyers jumped on the opportunity to take advantage of mortgage rates that dipped below 6.1% five times between mid-January end early February.”
Interest rates continue to climb upwards, according to Freddie Mac. Buyers could expect to pay 6.65% for a 30-year fixed-rate mortgage, up 0.15% from ten days ago and up 2.89% from a year ago. “Lower mortgage rates back in January brought buyers back into the market. Now that rates are moving up, affordability is hindered, making it difficult for potential buyers to act, particularly for repeat buyers with existing mortgages at less than half of current rates,” stated Sam Khater, Freddie Mac’s chief economist.
Leach expects some of the pressures may ease for Kitsap County buyers. “Kitsap County continues its new construction in both single-family homes and apartments at breakneck speed, while condominium construction has tapered slightly.”
Northwest MLS figures show there are 175 active listings of new construction homes and condos in Kitsap County, up from only 57 a year ago. Asking prices are similar -- $644,950 for last month’s active listings versus $648,990 for the year-ago selection.
All cities within Kitsap County are continuing to see growth and new permit requests, according to Leach. “People building custom homes will be the next wave as land sales and showings have had a spurt of activity.”
Brokers seem to have little concern about last month’s modest YOY price drop. December also had a slight decline from 2021 (down 0.51%), but a check of NWMLS records show the last time year-to-year prices fell was March 2011 to March 2012.
“Prices adjusted last month, depending on locale,” acknowledged Beeson, adding, “But there’s no slippery slope into the recession of 2008-2011 when there was a 30% price reduction. The lack of inventory guards against that situation occurring again. We’re perking along finding the new normal of a post-coronavirus market.”
Brokers also expressed confidence in the luxury market, with about 18% of the homes and condos that sold last month in the King-Pierce-Snohomish region commanding at least $1 million.
“The luxury home market is experiencing elevated buyer traffic, as the start of the luxury season begins in earnest,” reported Scott.
Deely described San Juan as “part of the luxury market that still has a very strong buyer demand,” noting inventory, pending sales and closed sales all notched gains from a year ago.
“Overall, with new listings, pending sales and closed sales all up from January, the market seems to be trending in a direction that fits with a normal seasonal market,” Deely declared.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2023-03-08T12:00:00-07:002023-06-22T11:27:20-07:00Matthew Lahtitag:pnwr.com,2012-09-20:9561Northwest MLS brokers encouraged by declining mortgage rates with some saying pent-up demand is triggering multiple offers KIRKLAND, Washington (February 6, 2023) – Pending sales around Washington state reached the highest level since October and surged nearly 44% from December, according to the January report from Northwest Multiple Listing Service. Last month’s 5,776 mutually accepted offers were down about 9% from a year ago, but brokers seemed encouraged by the “favorable spike.”
Prices on last month’s closed sales edged up slightly, at 0.41%, compared with twelve months ago. The area-wide median price on January’s 3,264 completed transactions $557,250; a year ago, when there were 5,085 closed sales, it was $555,000. Nine of the 26 counties in the report had year-over-year price bumps.
“We are seeing multiple offers once again,” stated John Deely, VP of operations at Coldwell Banker Bain. “It’s not like it was at the peak of the market, but buyers are out there and competing for properties,” he added.
The selection of properties, based on the number of total active listings in the MLS database, improved significantly from a year ago, rising from 3,092 listings to 8,220 at month's end. That total, which includes 7,179 single-family homes and 1,041 condominiums, was down about 13.2% from December’s selection.
Brokers added 4,925 new listings to the MLS database in January, about 1,000 fewer than the same month a year ago. Last month’s additions outgained December, when 2,980 properties were added, as well as November, when 4,890 listings were added.
“While residential inventory is popping above six months in a few of our reporting counties, which is at the upper edge of a balanced market, our most populated counties – King, Pierce, and Snohomish – are still sitting at one to two months of inventory, which is indicative of a seller’s market,” Deely commented.
The January report from Northwest MLS shows Adams, Columbia, Grays Harbor, Okanogan, and San Juan counties each had more than six months of inventory. Ten counties had less than three months of supply.
“We saw a favorable spike of intensity in the market in January,” reported L. Lennox Scott, chairman, and CEO of John L. Scott Real Estate. “With fewer new resale homes coming onto the market, there’s a shortage/low level of unsold inventory, especially in the more affordable and mid-price ranges where approximately 80% of sales activity takes place.”
Broker Dean Rebhuhn, owner of Village Homes and Properties, believes “the spring real estate market is here early. A combination of pent-up buyer demand, attractive prices and low inventory in King, Pierce and Snohomish counties are driving sales.” He pointed to “reasonable interest rates” and new properties coming on the market daily as factors for the creation of what he called the “new normal market.”
On Thursday, Freddie Mac (the Federal Home Loan Mortgage Home Loan Mortgage Corporation) reported the U.S. weekly average for a 30-year fixed-rate mortgage was 6.09%, down about a full point from November when it peaked at just over 7%. According to its research, this one percentage point rate reduction can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, the median home price in the U.S.
George Ratiu, manager of economic research at Realtor.com, said 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,” stated Frank Wilson, Kitsap regional manager and branch managing broker at John L. Scott’s North Kitsap office.
Last month’s median price for homes that sold in Kitsap County was $487,000, well below the median price in both King County ($723,000) and Snohomish County ($645,000). Prices in Kitsap are down from both a year ago and December, but inventory is tight with slightly more than two months of supply.
Wilson described the market in Kitsap as “similar to a well-planted bed of tulips. You know it is there but will not see any real color until March or April.” He believes many sellers are waiting until later in the year to sell, but noted buyers who must buy are currently out in numbers. “We are seeing good traffic at our open houses and new, correctly priced listings are receiving multiple offers.”
NAR Chief Economist Lawrence Yun suggested the “recent low point in home sales activity is likely over.” Commenting on pending sales for December, he stated, “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”
Although brokers and buyers welcome the declining rates and improving inventory, several obstacles still face first-time home buyers. Based on his observations, Rebhuhn said the biggest challenge for first timers involves assembling the down payment. “Buyers are using savings, gifts and loans from family, and borrowing from investment and retirement accounts,” according to Rebhuhn.
Deely also noted challenges exist in the condo market.
“The condo market in our most populated counties is quite a bit different and not recovering as quickly,” Deely said, adding, “However, it is still active, and the sales that are taking place are keeping the condo market in balance.”
Northwest MLS statistics for January show there were 757 pending sales of condos, about 24% fewer than the same month a year ago. Last month’s volume was the highest since October, when brokers reported 823 pending sales.
Condo prices system-wide were down about 2.5% from a year ago, declining from $435,000 to
$424,000. Only four counties (Kitsap, Pacific, Skagit, and Thurston) reported year-over-year price increases for last month’s condo sales.
Yun believes the “new normal” for mortgage rates will likely be in the 5.5% to 6.5% range, adding, “Job gains will steadily become important in driving local home-sales markets.”
Last week, the U.S. Labor Department defied expectations by reporting the addition of 517,000 jobs on a seasonally adjusted basis, the largest increase since July. The unemployment rate fell to 3.4%, the lowest level since 1968.
Washington’s Employment Security Department reported a statewide unemployment rate of 4.2% for December. (January figures are not yet published.) In that report, the U.S. unemployment rate was 3.5%. ESD’s county snapshot shows unemployment rates range from 2.8% in King County to 11% in Ferry County.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2023-02-08T11:32:00-07:002023-06-22T11:27:42-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8756Northwest MLS brokers tally 84,037 sales during 2022 valued at almost $64 billionKIRKLAND, Washington. (January 18, 2023) – Northwest Multiple Listing Service members reported 84,037 sales of single-family homes and condominiums during 2022. Last year’s closings were valued at more than $63.8 billion, with single-family homes accounting for about 90% of the total.
The activity in the Northwest MLS report reflects the work of nearly 34,000 brokers in more than 2,600 offices across 26 counties statewide. More than 83% of the state’s residents live in these counties.
The median price for last year’s completed transactions was $615,000, a gain of 8.85% from the 2021 figure of $565,000. In 2012, the median price was $245,000. For single-family homes, last year’s prices rose more than 8.1% from 2021. Year-over-year condo prices jumped 11.3%.
Single-family home sales (72,866) accounted for 86.7% of the total number of transactions, with condos making up the remaining 13.3%.
Compared to 2021, there were 23,317 fewer sales (down 21.7%). Last year’s sales of homes and condos were the lowest since 2014. (The 2021 total of 107,354 closings was the first time the sales volume topped the 100,000 mark.) Based on dollar volume, the 2022 total was down about 15% from 2021 when sales were valued at just over $75 billion.
Brokers reported fewer pending sales during 2022 compared to 2021, with year-over-year volumes down about 21.5%. The number of mutually accepted offers fell every month last year, peaking at a drop of 40.4% in November compared to the same month a year ago. In December, year-over-year pending sales were down 31.3%.
Real estate analysts point to insufficient inventory and spikes in interest rates as factors for the decreases.
Lawrence Yun, chief economist at the National Association of Realtors, noted interest rates climbed to one of the fastest paces on record during 2022, commenting the jump “drastically cut into the number of contract signings to buy a home.”
During 2022, Freddie Mac’s mortgage market survey shows the rate on a 30-year fixed rate mortgage was 3.22 for the week ending 1/6/2022 and steadily increased to a peak of 7.08 in early November, before tapering off to a rate of 6.42 for the week ending 12/29/2022. Sam Khater, Freddie Mac’s chief economist, described the housing market as “hypersensitive to rate movements, with purchase demand experiencing large swings relative to small changes in rates.”
Bloomberg cited higher borrowing costs and an uncertain economic outlook for keeping many potential buyers sidelined and suggested the Federal Reserve’s “aggressive tightening campaign to cool inflation has had an outsize impact on the housing market in 2022.”
Listing Activity
For last year’s buyers around Washington state, the selection of listings as measured by months of supply showed steady increases from the start of the year. In January, there were less than three weeks of supply (0.61 months). By December, inventory had improved to 2.09 months of supply. In 20 of the 26 counties in the Northwest MLS report, year-over-year inventory more than doubled.
On average, there were 10,075 active listings in the NWMLS database each month during 2022, improving on the monthly averages for 2021 (5,664) and 2020 (8,665), but well below most years since 2012, when the average number per month that year was 24,604.
Member brokers added 110,294 new listings to the MLS database during 2022, down from the previous year’s volume of 117,948 (a drop of about 6.5%). Activity for new listings, including single-family homes and condos, peaked in June with 14,223 additions.
Snapshot of Prices
Although there were fewer completed transactions (84,037) in 2022 than during 2021 (107,354), prices rose in all but one county (Ferry). Fourteen counties registered year-over-year double-digit gains.
For the MLS overall, prices escalated by double digits for the first six months of 2022 when compared to the same months a year prior. The price hikes moderated to single digits for the second half of the year, becoming essentially flat in December (-.051).
For 2022, the year-to-date median price of $615,000 was $50,000 higher than the figure for 2021 ($565,00) for a gain of nearly 8.9%. For single-family homes (excluding condos), year-over-year prices rose more than 8.1%; for condos, prices jumped 11.3%.
Viewed by price ranges, Northwest MLS statistics show an upward shift. In 2022, about 29% of buyers paid less than $500,000 for their home, a drop from 2021 when 35.4% of buyers paid less than $500,000. In King County, only 8.2% of last year’s buyers paid less than a half-million dollars for their home.
At the other end of the spectrum, nearly one of every five sales last year (19.85%) fetched one million dollars or more. For 2021, the figure was just under 16%. In King County 35.7% of the sales were for $1 million plus.
Sales Prices, SFH + Condos20222021King Co, 2022
<$299,999
4.87%
5.93%
0.31%
$300,000 to $499,999
24.27%
29.43%
7.87%
$500,000 to $749,999
33.63%
32.94%
31.89%
$750,000 to $999,999
17.38%
15.81%
24.23%
$1,000,000 to $2,499,999
17.97%
14.38%
31.62%
$2,500,000 & higher
1.88%
1.51%
4.08%
TOTALS
100%
100%
100%
Northwest MLS brokers sold 14,317 single-family homes priced at $1 million or higher, including 136 that sold for $5 million plus. The highest-priced sale, a waterfront home on Medina’s Gold Coast, commanded $23 million.
A total of 5,012 condos sold for a half-million dollars or more during 2022, including 1,045 condos that sold for $1 million or more. The most expensive sale, at $7,150,000, was for a penthouse in a high-rise building in downtown Seattle.
An analysis of prices by school districts revealed eight areas where median prices for single-family homes topped $1 million, led by Mercer Island where that district’s median price was $2,550,000. The other districts where the median price on last year’s single-family home sales exceeded $1 million include Bainbridge Island, Bellevue, Easton (in Kittitas County), Issaquah, Lake Washington, Northshore, and Snoqualmie Valley.
A comparison of prices for 3-bedroom homes that sold last year showed San Juan County with the highest median price, at $1 million. It was followed by King County ($836,000), Snohomish County ($675,000), Jefferson County ($654,250), and Whatcom County ($590,000). The most affordable 3-bedroom home was found in Ferry County where the median price on last year’s sales was $225,900.
Last year’s sellers, on average, received 102.5% of their asking (list) price. The ratio of the sale price to list price exceeded 100% in the first part of 2022 but dropped below that threshold starting in August and continuing through December. Thirteen of the 26 counties in the NWMLS report had a sale price to list price ratio of at least 100% or more for 2022 overall.
Snapshot of Condominiums
Of last year’s closed sales, 11,171, or about 13.9% of the total, were condominiums. About six of every 10 condos that sold (59.1%) were located in King County. Nearly 20% (19.7%) were located in Snohomish County.
The median price for last year’s condo sales area-wide was $473,000. Condos that sold in Snohomish County had a median price of $515,000, about 3% higher than King County’s figure of $500,000. Within King County, the most expensive condos were on the Eastside where the median sales price was $624,800, followed by Seattle at $535,000. (The median sales price in Okanogan County was higher, at $586,000, but only three condos were sold there during 2022.)
About half the condos that sold in 2022 had two bedrooms. Studios and one-bedroom condos accounted for 23.8% of the sales. Around one of every five condo sales (21.2%) had three bedrooms, with the remaining 5.6% having four or more bedrooms.
Snapshot of New Construction
Of last year’s 84,037 closed sales, 9,504 (about 11.3%) were classified as new construction. That was 2,699 fewer than 2021’s total (down 22.1%). The median sales price on last year’s newly built homes and condos was $740,084, about 11.3% higher than 2022’s figure of $664,950.
2023-01-20T11:49:00-07:002023-01-30T11:57:05-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8750For Northwest MLS brokers, December ends with a “whimper,” and 2022 was “a tale of two housing markets”Last year was a tale of two housing markets, suggested broker Dean Rebhuhn in commenting on the latest statistics from Northwest Multiple Listing Service.
The MLS report for December shows continued growth in the number of active listings compared to the same month a year ago, but sharp drops in the number of pending and closed sales. Last month’s prices for single-family homes and condominiums that sold across the 26 counties in the report dropped 0.51% from twelve months ago, marking the first year-over-year price decline since March 2012.
Year-over-year prices for last month’s sales of single-family homes and condos (combined) declined in 17 counties and rose in nine counties. The median sales price was $570,000, down $2,900 (-0.51%) from the year-ago figure of $572,900. Last year’s median price overall peaked in May 2022, at $660,000.
The median price for single family homes (excluding condos) that sold last month was $587,500, down 0.42% from a year ago when it was $590,000. Condo prices edged up last month compared to the same month a year ago, increasing from $435,000 to $440,000 for a gain of 1.15%.
“In the first half of the year, we had low-interest rates, rising prices, and little inventory,” commented Rebhuhn, who owns Village Homes and Properties in Woodinville. “The second half of the year brought increasing interest rates, some lowering of prices, and increasing inventory.”
Rebhuhn characterized last month’s activity as “good,” considering the holidays, snow, and a rare Pacific Northwest ice storm. He noted there were about twice as many pending sales as new listings on average every day. “We still have pent-up buyer demand and low inventory in the major markets.”
Brokers added 2,980 new listings to inventory last month. That total was 1,637 fewer than the number added during December 2021 (4,617).
Sellers accepted 4,017 offers from buyers, down about 31% from the year-ago volume of pending sales (5,850).
At month-end, buyers could choose from 9,475 active listings, nearly three times as many as a year ago when 3,240 homes and condos were offered for sale area-wide.
“The local housing market in 2022 ended with a whimper rather than a bang,” stated Matthew Gardner, chief economist at Windermere Real Estate. “Overall, the housing market is going to continue falling off the artificial ‘sugar high’ that was a function of the artificially low mortgage rates during the pandemic,” he added.
Dick Beeson, the managing broker at RE/MAX Northwest, Tacoma/Gig Harbor, also commented on last year’s market shifts.
“The market in the second half of 2022 was snakebit by high-interest rates and lots more people becoming sellers who wanted to either pocket their large equities or arbitrage their gains into less expensive markets,” he remarked, adding, “In a span of six months, we went from 3% interest rates to 7%, and from two weeks of inventory to two months of inventory.”
The Northwest MLS report shows about 2.1 months of inventory at the end of December, marking the fourth consecutive month with at least eight weeks of supply. Six counties, including King, Kitsap, and Snohomish, still have less than two months of supply.
Only four of the 26 counties in the NWMLS service area have five months or more inventory, noted John Deely, who added, “The market has slowed due to rising interest rates and economic news, yet we haven’t tipped to a buyers’ market quite yet, which is reflected by 4-to-6 months of inventory.”
In Kitsap County, where there are 1.78 months of supply, brokers added 172 new listings to inventory during December, 70 fewer than the same month a year ago. Pending sales (241 total) outgained new listings by 69 transactions. “Kitsap County sales continue to outstrip new inventory despite the concern for interest rates,” noted NWMLS director Frank Leach, broker-owner of RE/MAX Platinum Services in Silverdale.
Leach described sales as being “off slightly” but said there is a lot of movement. “We are seeing a lot of activity as folks reposition themselves to find a home and potentially refinance sometime in the future.”
“Open houses were relatively quiet during the holidays,” Leach reported, attributing some of the falloff to weather and seasonal schedules. “Agents are continuing to see multiple offers and some sellers are making concessions to bring their homes to a close so they can move on.”
“Kitsap County continues to have a robust building market in both the residential and rental markets,” according to Leach, who added, “As rents go up so do the number of folks who want to buy.” Also fueling activity is unimproved land, which Leach said is “getting a shot in the arm, with builders, investors, and folks wanting to build their dream home” being factors.
J. Lennox Scott, chairman and CEO at John L. Scott Real Estate, expects depleted inventory will persist in the near term.
“As we enter the first of the year, the market is experiencing a shortage of homes for sale in the more affordable and mid-price ranges,” Scott reported. “With the winter cleanup of unsold inventory complete, and with a low level of new listings coming on the market in January and February, the availability of homes for sale will be at a low point.”
Heading into spring, Scott expects an uptick. “We anticipate a strong/very strong intensity of new listings going under contract within the first 30 days.” He believes the intensity will settle down pre-summer “when we can expect to see a higher number of new listings coming onto the market.”
Several Northwest MLS representatives who commented on December activity expect prices to soften this year.
“It seems those pesky home price increases have apexed in most markets. Most areas will retreat slightly this year – maybe 2% to 4% and maybe more in some markets,” stated Beeson.
Deely noted “quite a few buyers dropped out of the market as rates went up,” but said 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 the decline in others, sellers are becoming more competitive.”
Gardner, the Windermere economist, acknowledged December 2022 prices were modestly lower than December 2021, but emphasized “This does not tell the whole story as the median home sale price for all of 2022 was significantly higher than in 2021.” (Northwest MLS figures show the median price overall increased by $50,000, or nearly 8.9%.)
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.”
Looking ahead, Deely remarked, “As we enter 2023, we are leaving behind the 2022 transitional market and a bridge from the once-in-a-generation 2021 housing market where we experienced record low inventory and peak sales.”
Rebhuhn suggests finding the proper price will be important for sellers in 2023, while buyers can look forward to increasing inventory. “The 2023 market will be better than most believe,” he stated.
Beeson anticipates an “exciting year” for real estate in 2023. “Thankfully, rates are trending down and should trickle down, even more, this year, giving buyers more purchasing power.” He also believes increased competition among sellers has been good for buyers, contributing to a more balanced market.
Freddie Mac reported mortgage market activity “significantly shrunk over the last year” as high rates continued to weaken the housing market. The government-sponsored enterprise (officially named the Federal Home Loan Mortgage Corp.) believes homebuyers are waiting for rates to decrease more significantly. With lower rates expected and inflationary pressures easing, Freddie Mac said “a strong job market and the large demographic tailwind of Millennial renters will provide support to the purchase market. Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2023-01-07T17:43:00-07:002023-01-30T11:51:23-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8755Despite seasonal slowdown, Northwest MLS brokers report pent-up demand for housingNovember statistics from Northwest Multiple Listing Service surprised a few brokers. They point to holidays, inclement weather, and various economic factors for prompting pauses in listing and sales activity. Nonetheless, several industry leaders commented on positive signs, fueled in part by pent-up demand and evidence of easing inflation pressures.
“Determined buyers are purchasing homes, with pent-up demand driving the market,” reported Dean Rebhuhn, owner of Village Homes and Properties in Woodinville. “Sellers who price to the market are attracting showings and receiving good offers,” he added, noting King County experienced an average of 55 sales per day last month, with year-over-year (YOY) median prices in King County up $10,000, rising from $740,000 to $750,000.
Northwest MLS figures show both pending and closed sales fell sharply from a year ago, but median prices system-wide edged up slightly (0.88%), from $570,000 to $575,000. Pending sales (mutually accepted offers) across the 26 counties in the report were down 40% (dropping from 8,571 a year ago to 5,106) while closed sales fell 42% (declining from 8,976 to 5,194). NWMLS figures show brokers closed an average of 173 sales per day across all counties.
The volume of closed sales, at 5,194, was the lowest level since February (5,147) and January (5,085). Compared to January’s median price of $555,000, last month’s buyers paid 3.6% more ($575,000).
“Our traditional seasonal slowdown around the holidays is happening earlier this year, with the alignment of climbing interest rates, economic news, local weather, and a volatile stock market,” stated John Deely, executive vice president of operations at Coldwell Banker Bain. “These conditions make it easier for consumers to place large purchases on hold, though we saw several notable sales in the luxury market over the last month, as real estate is still one of the best investments one can make,” he remarked.
Data from the multiple listing service shows 15.84% of November’s sales topped $1 million, while a year ago 13.96% of sales were at that level.
While some buyers are taking advantage of the expanding inventory as the market swings to their advantage, Deely said others are hesitant. “Some buyers are sitting on the sidelines waiting for interest rates to come down or thinking prices will come down even further.”
Inventory statistics were mixed. Brokers added 4,890 new listings during November, a decline of 24.2% compared to the same month a year ago when they added 6,455 new listings.
At month end, there were 12,245 total active listings, a whopping increase (about 165%) from the selection of a year ago when there were only 4,621 active listings.
Measured by months of inventory, November’s supply, at 2.36 months, was the best since January 2019 when the overall selection reached 2.4 months of inventory.
Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, commented on Kitsap County’s improving inventory. Northwest MLS figures show there was just under two months of supply (1.95 months), last month whereas a year ago there were only about two weeks of supply (0.57 months).
Leach described the market as “normalizing,” adding, “We have seen an uptick in open houses, with healthy traffic during October and November. We anticipate brisk sales across the holidays and into the new year with inventory building toward the end of December and into January. We’re telling folks to get pre-approved and have all their documents in so if the market does take a swing, they will be ready to seize the opportunity.”
The latest statistics from Northwest MLS show both pending sales and closed sales in Kitsap County fell about 33% year-over-year. Median prices edged up slightly more than 1%, from $500,000 to $505,471.
Northwest MLS director Mike Larson, the managing broker at Compass in Tacoma, also commented on the normalizing market, echoing comments about rates “leveling off a bit, there’s not nearly as much competition, and peak inflation appears to be behind us.” Citing observations in a company newsletter, he agreed <a>it’s</a> good news for buyers “and a hopeful sign that after the holidays and the new year will come a more normal market.”
Fifteen of the 26 counties reported price increases from a year ago, with 11 counties having declines. All four counties in the Puget Sound region experienced modest price gains, ranging from about 1.1% in Kitsap County to 2.9% in Snohomish County.
“The data show we’re in a changed market,” observed Dick Beeson, managing broker at RE/MAX Northwest in Tacoma/Gig Harbor. “High-interest rates, doubled inventory levels, anxious lenders, contracts written with negotiations for repairs, closing costs, and other sundry things – all of these have returned to the market,” he said, adding, “Sellers realize they must actually compete with other sellers to gain a buyer’s attention and an offer.”
Beeson reported some buyers “are having trouble pulling the trigger because their heads are spinning around” in part because there’s twice the inventory to choose from and the ever-changing market. In anticipation of further growth in inventory and rates edging down, he said brokers need to be ready to help buyers make informed decisions.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noted both the number of home buyers and the number of new listings are running below pre-pandemic seasonal levels. “There is a shortage of unsold inventory, especially in the more affordable and mid-price ranges where approximately 80% of transactions take place within each market.” He reported a strong level of activity intensity for new listings going under contract within the first 30 days.
“December is traditionally the low point of new listings coming onto the market because of the holiday season,” Scott noted, while pointing to good news for buyers. “Home mortgage interest rates are lower than a month ago!” Noting economists forecast lower interest rates on the horizon as the economy works through lowering inflation, Scott reported, “Homebuyers are currently purchasing at market price with the possibility to refinance when rates decrease. In the meantime, some buyers are purchasing with a five-year or seven-year adjustable-rate mortgage which lowers the interest rate and monthly payment.”
Matthew Gardner, the chief economist at Windermere Real Estate, is among those expecting mortgage rates to drop. “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.” He believes rates will remain above 6% until fall 2023 “when they should dip into the high 5% range. While this is higher than we have become used to, it’s still more than 2% lower than the historic average.”
Meredith Hansen, founder/operating principal at Keller Williams Greater Seattle and a NWMLS director, encouraged hopeful owners to consider purchasing options. “With rents expected to outpace home prices, it may be a good time to take the plunge into home ownership, especially for first-time buyers,” she suggested. “These first-time buyers should look at different opportunities to get their foot in the homeownership door.” Among the options she mentioned are possible rent-to-own opportunities or buying a home that needs work and building equity by “using elbow grease.”
Hansen also recommended would-be buyers tap into resources for prospective homeowners at the Washington State Housing Finance Commission, including its free homebuyer education seminars and down payment and closing costs assistance programs.
Looking ahead, Gardner 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.” He believes the days of sellers “having the upper hand are behind us,” adding they will have to become more realistic “with accurate pricing becoming more important than ever.”
Deely believes the 2023 market “is shaping up to be quite competitive with building inventory and pent-up buyer demand.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2022-12-06T11:12:00-07:002023-01-30T11:51:11-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8304Northwest MLS brokers say motivated home buyers turn to creative financing optionsBrokers with Northwest Multiple Listing Service (NWMLS) are reporting a return to some creative financing methods as motivated home buyers and sellers grapple with higher mortgage rates. Despite that, and the seasonal slowdown in activity, 6,435 hopeful homebuyers succeeded in having sellers accept their offers to purchase during October.
“Buyers are benefiting from more choices in inventory and less competition, while sellers are more negotiable when it comes to contingencies,” reported NWMLS director Meredith Hansen. “We are seeing more 2/1 buydowns and adjustable-rate mortgages with buyers planning to refi when the rates come back down,” added Hansen, the founder and operating principal at Keller Williams Greater Seattle.
The latest Northwest MLS shows 6,435 pending sales last month, and about the same volume (6,464) of closed sales. Both figures were down from the year-ago totals, with pending sales dropping about 39% and closings declining around 35%.
Median sales prices still rose year-over-year in most of the 26 counties on the report. Area-wide, the median price on last month’s completed sales of single family homes and condominiums was $595,000. That was an increase of about 3.5% from twelve months ago, but a decline of approximately 9% from May when prices peaked at $660,000.
Homes and condos in San Juan County commanded the highest prices, with a median sales price of $911,000 – and that was a 7.5% decline from a year ago. Last month’s closings in King County had a median price of $811,000, up more than 8% from the year-ago figure of $750,000.
A comparison of counties shows price drops in nine of them. Seven counties had double-digit gains, but improved inventory and interest rates were the storyline for many of the brokers who commented on the NWMLS statistics.
NWMLS director Jeff Pust said, “There is no doubt the market has changed with higher interest rates being the main culprit.” He acknowledged some buyers are waiting to see if rates and home prices drop. “My fear is that buyers who take this approach may miss out on the perfect home as some fantastic properties have come on the market that have sellers who are determined to sell and move on,” added Pust, the owner/designated broker at Van Dorm Realty, Inc., in Olympia.
Brokers added 7,260 new listings during October, down about 21% from the same month a year ago. At month end, the selection included 14,214 active listings of single family homes and condos system-wide. That was more than double the year-ago inventory of 6,588.
The uptick in supply boosted the months of inventory figure to 2.2. That is the highest level, based on this metric, since January 2019.
“Buyers’ opportunities abound,” proclaimed Gary O’Leyar, owner/CFO at Berkshire Hathaway HomeServices Signature Properties in Seattle, noting inventory in several counties is two-to-three times larger than a year ago.
“As for the interest rate ‘elephant in the room,’ the time has come for buyers and sellers to revisit financing methods from previous markets,” O’Leyar said, mentioning the use of buydowns, adjustable-rate loans, carrying back second deeds of trust, and closing cost allowances as possible options.
“Interest rates can and will change. When they drop, refinancing is an option or taking out a shorter term 5/1 ARM. For buyers with foresight and market savvy, here is their opportunity.”
“Inventory continues to grow,” said Frank Leach, broker owner at RE/MAX Platinum Services in Silverdale and a member of the NWMLS board of directors. He described the market in Kitsap County as “strong and competitive. Open house traffic continues to be very active and buyers are being offered a number of seller concessions to soften the blow of increasing interest rates, especially on new construction,” he reported. “Mortgage programs are offering below-market rates with various buydown options – something we have not seen for years!”
John Deely, executive vice president of operations at Coldwell Banker Bain, also commented on building inventory and strong open house traffic. “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 with the help of seasoned brokers.”
Unlike the recent past, when buyers encountered multiple offer situations and not being able to get into a property because they were outbid, Deely said the question for them now is affordability in the neighborhoods where they want to live. “We are seeing sellers who are concerned about further rate increases come to the market now to beat the traditional build-up during the first of the year and in the spring. With less competition, now is the time to get into the market.”
Dean Rebhuhn, owner of Village Homes and Properties in Woodinville, echoed those comments. “We’re seeing buyers find opportunities, with sellers offering good pricing,” he stated. “Lifestyle decisions continue to drive sales. Even though rising interest rates make it more difficult for some buyers, pent up demand continues.”
Describing the market as bifurcated, with some listings coming on the market and sitting for several weeks and others that come on and immediately get multiple offers or above asking price offers, broker Frank Wilson said both buyers and sellers need to be prepared.
“Buyers still have to act quickly and put their best foot forward when making an offer,” stated Wilson, branch managing broker at John L. Scott, Inc. in Poulsbo. He also recommended relying on their real estate broker’s expertise in determining the value of the home that interests them in today’s market.
Sellers need to be “laser focused on price and condition,” advised Wilson, adding, “What your neighbor’s house sold for six months ago has very little bearing on your home’s value today.”
Wilson also noted buyers tend to focus more on their monthly payment instead of the price of the home. “If they need a home today, they may need to budget for higher monthly payments until they can refinance to a lower rate a year or two from now, when hopefully rates will begin to go down again.”
“Even with more choice on the market than we’ve seen in several years, pending sales fell last month,” remarked Matthew Gardner, chief economist at Windermere Real Estate. “The cause is almost certainly rising mortgage rates, which rose from 6.65% early in the month and ended above 7.1%; this is clearly having an impact on buyers,” he added.
Gardner believes many buyers may remain sidelined until mortgage rates stabilize, but added he had “bad news for those buyers who are sitting on the fence waiting for home prices to implode.” He expects regional home values will turn modestly negative in 2023, but said, “those who hope to pick up a home ‘on the cheap’ are likely in for a long wait.”
“Real estate pros like this kind of market,” proclaimed Dick Beeson, managing broker at RE/MAX Northwest in Tacoma/Gig Harbor, explaining “They get to display their negotiation and marketing skills,” he explained.
Beeson believes “We are now experiencing a balanced market. I said the new normal was 2-to-4 months of supply back two or three years ago. We’ve finally reached that point. This is the new normal until interest rates go down.”
A few of the Northwest MLS spokespersons commented on new construction.
“Homebuilders are lowering prices and some are offering incentives such as interest rate buydowns to attract sales,” reported Rebhuhn.
“While we don’t track land on these MLS reports, we are seeing a definite uptick in activity with undeveloped land,” stated Leach. “Rentals now under construction and being completed are at the highest numbers in Kitsap County’s history.” While rental prices should be more competitive with expanding choices, he said landlords may offer concessions, but he doesn’t expect rents to be reduced. Nevertheless, he remarked, “There should be ample housing for every budget and lifestyle in the coming year.”
Also commenting on interest rates was the National Association of REALTORS®, which noted the slight dip in mortgage rates this week despite the Federal Reserve approving another 0.75% rate hike for the fourth time this year.
NAR cited Freddie Mac’s 30-year fixed mortgage rate that fell to 6.95%, down from 7.08% the previous week. “It seems that rates have already priced in some of the effect of the Fed’s higher interest rates. It is also promising that this was likely the last rate hike of this magnitude, as indicated by the Fed,” wrote Nadia Evangelou, NAR’s senior economist and director of forecasting.
Evangelou also speculated “a return to the sky-high interest rates of the 1980s isn’t likely in today’s economy” and drew comparisons to payments now with those of 40 years ago in today’s money. “In real terms, after adjusting the median home price for inflation, the monthly mortgage payment was about $450 higher in 1982 than it is now,” she wrote in a blog, adding, “If mortgage rates were currently 9% the monthly mortgage payment would be comparable to 1982 rates. Thus, in real values, current buyers pay less for their home purchase than buyers who purchased their home 40 years ago, although home prices are significantly higher now.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/766544353">October Monthly Market Snapshot</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-11-07T14:47:24-07:002023-01-30T11:50:58-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8301Brokers say home buyers “finally get some relief” with return to “more traditional market”KIRKLAND, Washington (October 6, 2022) – “The shift in the market isn’t a surprise,” said broker Mike Larson when commenting on the latest statistics from Northwest Multiple Listing Service. The report on September activity shows active listings are nearly doubled from a year ago, pending sales declined more than 31%, but prices in most counties are still rising.
“Buyers are finally getting some relief,” said Larson, a member of the Northwest MLS board of directors and the managing broker at Compass in Tacoma. “Getting back to a balanced, more normal market is almost a welcome change,” he added, but noted “inflation and rising rates aren’t helping.”
“Though technically still a seller’s market, it is more favorable to buyers than it has been in a decade,” noted John Deely, executive vice president of operations at Coldwell Banker Bain. He cited building inventory, lengthening market time, and a slowdown in price increases as factors.
NWMLS brokers reported 7,504 closed sales during September, down 27% from a year ago when they notched 10,289 completed transactions.
The median price on last month’s sales across the 26 counties in the report rose about 5.1% from a year ago, increasing from $570,000 to $599,000. Prices are down slightly from the August median of $600,000 and from the year’s peak of $660,000 that was reported in May.
“The ‘Great Reversion’ continues with the number of homes in the tri-county market of King, Pierce, and Snohomish counties up 106% from a year ago,” stated Matthew Gardner, chief economist at Windermere Real Estate. “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.”
County
Active Listings, Sept. 2019
Active Listings, Sept. 2022
% change
King
5,431
4,738
-12.8%
Snohomish
2,156
1,873
-13.1%
For the 26 counties in the MLS report there were 15,008 active listings at the end of September. That’s a jump of more than 93% from the year-ago total of 7,757 active listings. It is also a slight improvement (2.2%) from August when there were 14,683 active listings across the NWMLS market.
Measured by months of supply, there are only two months of inventory, an improvement from one year ago when there were only about three weeks (0.75 months) of supply, but still well below the four-to-six months of inventory real estate analysts use as a measure of a balanced market.
King County has 2.02 months of supply, but the other counties in the Puget Sound region have less than that. There is 1.61 months of supply in Kitsap County, 1.63 months in Snohomish County and 1.84 months in Pierce County.
Last month’s uptick in inventory included 9,422 new listings brokers added during September. Compared to the same month a year ago, that volume of new listings dropped 17%. Compared to August, new listings dipped about 5%.
The inventory of single family homes (excluding condominiums) nearly doubled from a year ago, jumping from 6,679 to 13,266 (up 98.6%). Condo listings jumped about 62% from the year-ago figure of 1,078 to 1,742.
Pending sales (mutually accepted offers) of single family homes and condos declined from a year ago, shrinking from 11,318 to 7,764, a drop of more than 31%. Last month’s pendings also fell from the August figure of 9,552 (down 18.7%).
Pending sales of single family homes, which accounted for nearly 88% of last month’s pendings, dropped around 31%, while condo sales slipped nearly 35%.
“Overall, September showed signs of a more traditional market with a natural slowdown of pending sales during this time of year,” observed Deely.
“Although the housing market experienced a major intensity adjustment from the spring, the percentage of homes going under contract within the first 30 days is strong and resilient,” stated J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “We are seeing approximately 80 percent of sales activity take place in the more affordable, mid-price range, and upper end price points,” he added.
Scott also cautioned against comparisons to the pandemic years. “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.”
A comparison of counties in the MLS report shows wide variation in year-over-year price (YOY) changes. Prices dropped in six counties (Clallam, Columbia, Lewis, Okanogan, Pacific and San Juan), while five counties registered double-digit increases (Adams, Douglas, Ferry, Skagit, and Walla Walla). The remaining 15 counties had single-digit YOY price gains.
In Kirkland, which Money magazine just ranked third-best place to live in the U.S., the median price of a single family home that sold during September was $1,355,000. That marked a jump of about 8.6% from the year-ago sales price of $1,247,500.
Area-wide, the median price on last month’s single family homes (excluding condos) rose 4.75%, from $589,000 to $617,000. King County, where the median price on last month’s single family home sales was $875,000, had the most expensive homes. Within King County, single family homes on the Eastside fetched the highest price last month at $1.2 million. Homes in the southwest segment of the county sold for about half that amount ($590,000), but they had the highest YOY increase when comparing the six sub-areas tracked by the MLS. Countywide, single family home prices increased nearly 6%.
Condo prices surged 9.2% from a year ago, rising from $435,000 to $475,000.
“We are in a new market and proper pricing is most important,” emphasized Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. “We are still experiencing pent-up buyer demand in King, Snohomish and Pierce counties,” he added, pointing to low supply in those areas.
Commenting on prices, Deely said, “From January through June, we had double-digit median price increases every month, which ceased in July. All this gives buyers more selection and the time to be more selective.”
In general, “sellers are still realizing nice gains,” Larson commented.
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, especially given that 64% of them are sitting on over 50% of home equity.”
Uncertainty about the direction of mortgage rates is prompting buyer hesitancy, according to some market watchers.
“With uncertainty over interest rate increases, some buyers are still holding off,” stated Deely. “For sellers, correct pricing remains critical if they want to capture buyers who are currently in the marketplace.” Continuing, Deely said, “Sellers need to be hyper-local in their pricing strategy based on what is happening in their local market now versus ‘what could have been’ earlier in the year.”
Rebhuhn agreed, saying motivated sellers are reducing prices to attract showings as increasing mortgage rates are reducing purchasing power.
Larson suggested waning consumer confidence may be having an impact on activity. “When consumer confidence in the economy is low, the instinctive response is to hunker down and do nothing.”
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.”
On a brighter note, The Conference Board said its Consumer Confidence Index® increased in September for the second consecutive month. Acknowledging recession risks “nonetheless persist,” Lynn Franco, senior director of economic indicators at The Conference Board, stated, “Concerns about inflation dissipated further in September – prompted largely by declining prices at the gas pump. . .”
Commenting on inflation, veteran broker Rebhuhn said, “Smart purchasers understand home ownership is a good hedge against inflation.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/756922242">NWMLS September 2022 Market Snapshot</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-10-07T11:28:00-07:002023-01-30T11:50:45-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8300Northwest MLS report shows “typical August,” and return to more “normalized conditions”KIRKLAND, Washington (September 8, 2022) – Reports that we are entering a “bear market” are highly exaggerated, suggests an economist who tracks real estate activity when commenting on the latest statistics from Northwest Multiple Listing Service (NWMLS). A director with the multiple listing service said the latest data may just reflect a typical August, noting activity tends to be slow as summer ends.
“Many may not remember August is usually a slow month because we were in a full-on sprint the last two years no matter which month it was. This may just be an adjustment back to normal,” said Jason Wall, designated broker and owner at Lake & Company Real Estate and a member of the Northwest MLS board of directors.
In a report summarizing August activity, Northwest MLS figures showed a continued buildup of inventory – nearly double the selection of a year ago and more than three times the offerings at the end of the first quarter.
Brokers added 9,914 new listings to inventory during August, a drop from both July’s total of 11,805 and the year-ago total (11,437). At month end there were 14,683 active listings of single family homes and condominiums across the 26 counties in the NWMLS report.
Fewer sales were reported than a year ago, but both pending sales (mutually accepted offers) and closed sales improved on July’s figures.
Northwest MLS members reported 9,552 pending sales, a drop of nearly 22% from the year-ago total of 12,238 pendings. Every county except Columbia experienced a decline in pending sales. Activity picked up from July when there were 8,775 pending sales, a gain of nearly 8.9%.
Similarly, the volume of closed sales fell from a year ago. MLS members recorded 7,998 completed transactions, improving 4.6% from July’s total of 7,645. But last month’s closings were down about 24% from the same month a year ago when members notched 10,571 closed sales.
“Last month’s housing numbers certainly are eye-opening,” stated Windermere Chief Economist Matthew Gardner. “However,” he continued, “I believe they are simply indicating the market is trending back to the more normalized conditions that we were seeing before the pandemic.”
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, commented on the local housing market’s resilience. “The resilience is clear as a steady cadence of homes going under contract continues. In the more affordable and mid-price ranges, demand remains strong as buyers look to get settled before fall.”
Broker Dean Rebhuhn, owner at Village Homes and Properties, commented on inflation and pent-up buyer demand. “Buyers are realizing homeownership is a good hedge against inflation,” he remarked. “The market took a slight pause as mortgage rates increased from historic lows. Then, as sellers came to the market with realistic pricing, and price reductions on existing inventory occurred, pent up buyer demand took effect and buyers found homes they could afford.”
Rebhuhn also noted last month’s sales showed home values continue to appreciate.
The median price on sales of single family homes and condos that closed during August was $600,000, up more than 3.6% from a year ago, but down slightly from July when the area-wide price was $625,000.
For single family homes, year-over-year (YOY) prices rose about 4.2%, from $600,000 to $625,000. Homes in San Juan County registered the steepest jump, climbing from $800,000 to $995,000 (up nearly 24.4%).
A comparison of the four counties in the Puget Sound region shows year-over-year median prices for single family homes increased from 5.9% in King County to 9.2% in Kitsap County.
Within the six sub-areas on the report for King County, North King County notched the largest YOY gain on single family home prices at 11.5%, followed by the map areas within Seattle (5.9%), Southwest King County (4.1%), the Eastside (about 3.9%), and Southeast King County (nearly 3%). Prices fell 11.3% on Vashon compared to a year ago.
Condo prices system-wide rose 3.3% from twelve months ago. Across all counties, the median price rose from $435,625 to $450,000. In King County, where nearly 60% of condo sales occurred, the median price increased 5.9%, from $458,000 to $485,000.
A check of the sales price to list price ratio shows an area-wide ratio of 99.3%. In three counties – Pierce, Thurston and Douglas – sellers received slightly more than their asking price. In ten other counties, the ratio was between 99.1% and 99.9%.
Economist Gardner expects prices will soften. “Home sales increased month-over-month, but the rise in listings is causing prices to soften,” he remarked, adding, “I predict prices will drop further as we move into the fall, but reports that we are entering a “bear market’ are highly exaggerated. The market is simply reverting to its long-term average as it moves away from the artificial conditions caused by the pandemic.”
Commenting on the uptick in inventory, Gardner said, “Even though inventory in the King, Pierce and Snohomish counties region almost doubled from a year ago, the number of homes for sale is still 14% lower than in August of 2019.”
Wall and Scott also commented on the jump in inventory.
Scott expects only two more months this year will have an increased selection of new resale listings coming on the market. “Once winter hits, new resale listings will become scarcer until activity ticks up to a higher level in March 2023,” he stated.
Wall also believes inventory will grow, saying, “I expect we will see even more inventory as we move out of the summer and into fall. Sellers will need to be more realistic about pricing and follow the advice of their broker regarding preparation of the home and positioning in the market. Buyers will have more inventory to look at and the longer market times may give buyers some leverage that they have not had in the past few years.”
John Deely, executive vice president of operations at Coldwell Banker Bain, also anticipates a more balanced market. “With continued building of inventory and fluctuating yet rising interest rates in July, we were on a trend toward a more balanced market. This seems to have cooled slightly as active inventory dropped from July to August. And, with less than two months’ inventory, we are still very much in a seller’s market.”
Commenting on prices, Deely reports increased competitiveness. “With the increase in median price slowing down to single digit percentages for the last two months, we are also seeing some competitiveness in pricing. Sellers are closely watching the market and pricing competitively to get their property sold. The increase in market time reflected in the months of inventory is due to sellers who are not pricing accurately, so their homes are sitting on the market longer.”
Despite the surge in inventory, the Northwest MLS report shows there is only 1.84 months of supply – and that’s down from July’s figure of 2.01 months. Only six counties had more than three months of supply: Adams, Ferry, Lewis, Okanogan, Pacific, and San Juan. Most industry analysts consider four to six months of inventory to be a balanced market.
“Buyers have taken a beating the last few years,” said Wall. “A move to a more balanced market will likely encourage buyers that stopped looking to rethink the idea and return. Even if interest rates are higher the continued rise in rent expense still makes owning a home an attractive idea.”
Lawrence Yun, chief economist at the National Association of Realtors®, believes “we may be at or close to the bottom in contract signings” for the current housing cycle. He noted housing affordability plummeted to its lowest level since 1989, in part due to rising mortgage rates and prices, but he expects annual price appreciation to moderate “to the typical rate of 5% by the end of this year and into 2023.”
Continuing the optimistic outlook, Yun stated, “With mortgage rates expected to stabilize near 6% alongside steady job creation, home sales should start to rise by early next year.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/745565670">NWMLS August 2022 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-09-09T11:24:00-07:002023-01-30T11:50:33-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8299Brokers say all parties in housing transactions need to recalibrate during shifting marketKIRKLAND, Washington (August 4, 2022) – New statistics from Northwest Multiple Listing Service confirm reports of a shifting housing market, prompting one industry leader to suggest “all parties involved in a transaction today have to recalibrate.”
“Today’s buyers have their cups finally overflowing with options as residential inventory grows to about two months of supply,” said Dick Beeson, managing broker at RE/MAX Northwest Realtors in Gig Harbor. The MLS report summarizing July statistics show 2.01 months of inventory system wide.
Inventory of single family homes and condominiums across the 26 counties served by Northwest MLS has not exceeded two months since January 2019 when there was 2.3 months of supply.
Commenting on the “many moving parts” of the market and the need to recalibrate, Beeson said sellers “are starting to see that overpricing just ain’t in the cards right now.” He also noted buyers still have to compete with other would-be homeowners, and depending on the property, some sellers are receiving offers over their asking price. “Buyer and seller expectations have changed. It feels like things are starting to normalize a little,” Beeson remarked.
Active listings have nearly doubled from a year ago, jumping from 7,948 offerings of single family homes and condos to 15,381 (up 93.5%). The addition of 11,805 new listings during the month contributed to the boost. Compared to June, the selection expanded by 1,976 listings (up 14.7%).
Evidence of slower activity appears in the sales figures. Pending sales retreated about 24% from a year ago, dropping from 11,567 to 8,775 mutually accepted offers. The NWMLS report shows a nearly 30% year-over-year decrease in closed sales (declining from 10,919 closings to 7,645).
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 increased 6.1% from a year ago, rising from $589,000 to $625,000. For single family homes only (excluding condos), prices jumped about 6.6% and condo prices gained more than 8.6%.
In the four-county Puget Sound region, price changes ranged from a gain of about 2.7% in King County (from $789,000 to $810,000) to a jump of nearly 12.7% in Pierce County (from $501,500 to $565,000). Kitsap prices rose 5.4% while prices in Snohomish County increased 9.3%.
“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,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.
A check of Northwest MLS statistics illustrates Scott’s point. Sellers in half the 26 counties accepted full price or above asking price offers. Based on the sales price to list price ratio, sellers of homes in Thurston County received 103.1% of their listing price to top the list. The other 12 counties where homes sold at or above the list price were Chelan, Clark, Cowlitz, Franklin, King, Kitsap, Mason, Pierce, San Juan, Skagit, Snohomish, and Whatcom.
The market balance is favoring buyers, reported Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. “After experiencing multiple offers, shrinking inventory, or not being able to include inspection or financing contingencies with their offers, buyers now have choices,” he explained.
Noting King County had about seven weeks of inventory at the end of July (1.86 months) – about double May’s supply (0.83 months) – Rebhuhn described sales as “very good,” but said savvy sellers are making certain their homes are “priced right to win the sale. Overpriced listings have missed the market.”
Lennox Scott reported some buyers around Puget Sound are experiencing “buyer gridlock,” meaning they are seeking to sell their current home before getting under contract for their next property. “Home sale contingencies are a useful tool for homeowners in similar situations during this time.”
Northwest MLS director Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, said Kitsap County continues to be a hot market, with homes in the $400,000-to-$700,000 price range drawing multiple offers. “Open house traffic is increasing, and we continue to see an influx of buyers from the greater Puget Sound region and from out of state who are moving to take advantage of Kitsap’s quality of life and diverse work force.”
Like nearly every county in the Northwest MLS service area, Kitsap had fewer pending sales than a year ago (483 versus 580 for a drop of 16.7%), but compared to June, brokers reported 27 more pending sales (up 5.9%). Year-over-year prices on closed sales in Kitsap rose 5.4%, from $507,500 to $535,000.
Leach also noted marketing times continue to be brisk, saying most sellers receive offers within 15 days, although he expects that to increase as inventory grows. Buyer concessions on resale homes are also on the rise, according to Leach. Builders are building “at a monumental rate” while trying to adjust to increases in mortgage rates. “We are seeing builders moving their price points down and providing incentives to buyers in closing costs and buydowns to help borrowers obtain lower interest rates.”
John Deely, executive vice president of Coldwell Bank Bain, said, “We are coming off the fevered pitch of a market that had tremendous velocity over the last few years. With listings starting to build again we are seeing a bit of a natural slowdown, yet still very much a sellers’ market.”
Industry experts consider less than four months of inventory to be a “seller’s market.” Deely noted every county in the NWMLS report except San Juan and Columbia had less than four months. All four counties in the Puget Sound region had less than 1.9 months of supply.
The good news, according to Deely, is “not only is there more inventory for buyers to view, but sellers who were on the fence about placing their home on the market, mainly because they had nowhere to go, are now seeing potential.”
Commenting on the slowing rate of price increases, Deely noted “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.”
Only two counties, Ferry and Island, reported a year-over-year drop in median prices, according to the MLS report. Nine counties experienced single-digit appreciation in July compared to 12 months ago, with the remaining 15 having double-digit gains.
The latest Northwest MLS report mirrors some of the findings from the National Association of REALTORS® and its Confidence Index for June. (Figures for July are not yet available.) NAR’s data showed the average number of offers per property dipped to three from a previous high of five. Median days on the market for homes nationwide was 14, a record low. Nearly a third (30%) of buyers waived inspection and appraisal contingencies, which NAR said has held fairly steady since the start of the pandemic.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/735588310">NWMLS July 2022 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-08-06T11:16:00-07:002022-11-06T12:22:25-07:00Matthew Lahtitag:pnwr.com,2012-09-20:8298Brokers, home buyers welcome growing inventory and market returning to “some sense of normalcy”KIRKLAND, Washington (July 6, 2022) – Housing statistics from Northwest Multiple Listing Service for June show signs of a shifting market, creating opportunities for some buyers. Compared to a year ago, Northwest MLS (NWMLS) brokers reported a healthy jump in inventory, double-digit drops in both pending and closed sales, and the smallest year-over-year (YOY) increase in prices since June 2020.
“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,” said Frank Wilson, Kitsap regional manager at John L. Scott Real Estate.
“It’s nice to see a more balanced market for buyers,” remarked Dean Rebhuhn, owner at Village Homes and Properties in Woodinville, pointing to the increase in new listings, more price reductions, and still favorable mortgage rates as factors that are creating opportunities for buyers. “The return of financing and inspection contingencies are now the norm,” he reported.
Northwest MLS brokers added 14,223 new listings of single family homes and condos to inventory during June, up from both May, when they added 13,075 homes system-wide, and a year ago, when they added 13,111 properties to the database. Last month’s total was the highest volume of new listings since May 2019 when brokers tallied 14,689 new listings.
At the end of June there were 13,405 active listings of single family homes and condominiums in the Northwest MLS database, which includes 26 of the state’s 39 counties. That’s more than double the inventory of a year ago (6,358 listings), and the best selection since October 2019 when buyers could choose from 14,379 listings.
Both pending sales (mutually accepted offers) and closed sales declined from a year ago. MLS members reported 8,937 pending sales during June, down 27.5% from the year-ago total of 12,328, and down 3.8% from May.
Closed sales also fell from a year earlier (down about 17.2%), but last month’s total of 9,047 completed transactions nearly matched May’s volume of 9,096.
“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,” said John Deely, executive vice president of operations at Coldwell Banker Bain. “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. It slows down the steep price appreciation we have been seeing and provides a bit more time for buyers to look at more properties.”
The latest MLS report shows area-wide prices rose about 10.4%, from a median price of $589,000 to $650,000. On a percentage basis, that is the smallest year-over-year (YOY) gain since June 2020 when prices rose around 5.7%.
Seven counties had YOY price hikes of 19% or more for last month’s sales of single family homes and condos: Douglas, Ferry, Jefferson, Kitsap, Lewis, Mason, and Whatcom.
San Juan County had the highest median price last month, at $940,000, for it 25 sales of single family homes and condos.
King County had the second highest sales price last month, coming in at $851,000. That represents a 9.1% increase from a year ago, but a slight decline (3.4%) from May’s figure of $880,000. Median prices topped $1 million for both Vashon and the Eastside map areas, as well as for areas encompassing North Seattle and Lake Forest Park.
Prices of single family homes (excluding condos) system-wide rose about 10.5% from a year ago. Condo prices increased by a similar amount (10.2%).
Commenting on prices, Deely acknowledged they’re “leveling out,” but commented, “We are still not a buyer’s market by far.” He believes some of the slowdown in pending and closed sales is simply part of a seasonal cycle this region experiences in June and July once school is out and people begin to travel. “In fact, travel is hitting peak numbers this summer as the world continues to open,” he stated.
Wilson also commented on the changing market, noting the uptick in months of supply. It reached nearly six weeks (1.48 months) by the end of June. “While we have seen an increase in market time to almost a month and a half, there is a long way to go for the market to reach a neutral level which is typically found between four and six months of inventory,” he stated.
Commenting on the Kitsap market, where there is about 1.3 months of supply, Wilson said it is “nowhere close to flipping to a buyer’s market,” adding, “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.”
Northwest MLS director Meredith Hansen echoed those remarks. “With higher interest rates and more inventory, we are seeing sellers becoming more flexible in what terms they will accept,” reported Hansen, the founder/operating principal at Keller Williams Greater Seattle. “It is an excellent time for buyers who were discouraged in the past frenzied market to step back in and find a home,” she suggested, adding, “Buyers are not waiving financing and inspections like they were prior to this market shift.”
Lennox Scott, chairman and CEO of John L. Scott Real Estate, also commented on the “intensity adjustment” in the Puget Sound market, while noting sales activity remains strong. “Everything is coming together for buyers in the market, with increased selection of available listings and fewer multiple-offer situations to navigate. A strong contingent of buyers is taking note of new listings and poised to put an offer on the right home, in the right condition, at the right price.”
Expecting “much will be made of the numbers that showed a significant increase in active listings” during June, Windermere chief economist Matthew Gardner said it’s important to keep things in perspective.
“The pandemic heavily influenced the housing market with inventory levels essentially drying up in 2020/2021,” Gardner stated. In analyzing June’s data, he noted single family home listings in the tri-county area of King, Pierce, and Snohomish counties rose more than 144% compared to a year ago. “This still represents the fourth lowest number of listings in any June for this region since 1999.”
Gardner believes the market is trending back to some sense of normalcy. “The increase in listings has started to slow the rabid pace of price gains that we have experienced. This is a good thing, not a cause for concern,” he emphasized.
Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, concurred with some of Gardner’s observations. “Kitsap County continues to see a robust market. Inventory is up 110% from a year ago,” he exclaimed, pointing to the MLS report showing active listings soared from 288 to 606 listings. He expects the increasing supply in Kitsap County will help provide a more balanced market. Leach also noted both pending and closed sales slipped year over year, but prices surged more than 19%.
“Kitsap is in a building boom and builders are racing to meet demand,” according to Leach. Open houses have resumed, but traffic “was off” at the end of June, which he suggested may be due to inclement weather and graduations. Leach also noted rents are rising across the county, pushing first-time buyers into the market. “Increasing interest rates are of some concern and buy-downs on interest rates are being used widely,” he reported.
“Both rising mortgage rates and home prices hurt affordability for many buyers,” stated Nadia Evangelou, senior economist and director of forecast at the National Association of Realtors, in an interview with a reporter for MarketWatch Picks. With affordability concerns and persistent inventory shortages, she said more people are renting, but rents are rising sharply.
“For institutional buyers, rising rents translate to larger profits,” Evangelou explained, adding, “However, a larger market presence of institutional buyers increases market competition for first-time home buyers. Research has shown that institutional investors may be taking a significant portion of homes that would otherwise be sold to first-time and lower-income buyers.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/726196023">NWMLS June 2022 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-07-07T10:58:00-07:002022-11-06T12:23:20-07:00Matthew Lahtitag:pnwr.com,2012-09-20:7637Western Washington housing market “more balanced, and not so crazy – and that’s a good thing”KIRKLAND, Washington (June 6, 2022) - "Home sellers really need to re-think their expectations," suggested Mike Larson, a member of the board of directors at Northwest Multiple Listing Service (NWMLS) when commenting on statistics summarizing May activity. The new report showed a significant increase in active listings compared to a year ago, a slowdown in sales, and prices still rising.
Larson, the managing broker at Compass in Tacoma, said the days of "multiple offers and waived inspections, at least in Pierce County, are behind us." He described the market as "more balanced and not so crazy, and that's a good thing. Buyers are getting a little relief - not much, but a little as we're slowly easing back into the kind of market we had pre-COVID."
NWMLS members added 13,075 new listings to inventory during May, up 9.7% from a year earlier and the highest monthly number since June 2021.
At the end of May, buyers could choose from 8,798 active listings system-wide, up a whopping 59% from a year ago when there were only 5,533 properties in the database. That is the largest selection since September 2020 when there were 9,099 single-family homes and condominiums offered for sale across the 26 counties served by Northwest MLS.
Two counties more than doubled their number of active listings from a year ago. The selection in Snohomish County jumped from 500 to 1,182 listings (up 136.4%). Douglas County had a similar increase, rising 134.5%. Also nearly doubling their inventory from a year ago were Cowlitz, Island, and Walla Walla counties.
"The significant increase in the number of homes for sale has some speculating that the market is about to implode, but that is very unlikely," stated Matthew Gardner, chief economist at Windermere Real Estate. "What's more likely to occur is that the additional supply will lead us toward a more balanced market, which after years of such lopsided conditions, is much needed," he added.
Even with the healthy uptick in inventory, there is still less than one month of supply area-wide (0.97 months). Twenty of the 26 counties in the report are showing more than a month of supply, with the tightest inventory (0.85 months or less) in the four-county Puget Sound region.
Both pending sales (mutually accepted offers) and closed sales during May were down from a year ago, but up from the previous month.
Pending sales declined about 11.7% from twelve months ago but increased 8.2% compared with April. Members reported 10,563 pending sales of homes and condos last month, up from April's figure of 9,760, but down from the year-ago total of 11,969.
Gardner believes the April-to-May increase indicates rising mortgage rates are not yet negatively impacting the housing market. "The additional supply of homes for sale is giving buyers more choices, which is something they haven't had in several years," he remarked.
Closed sales dipped slightly from a year ago (down about 3%) but rose 9% from April. Members completed 9,096 sales last month, which was 278 fewer than a year ago. May's total outgained April by 752 transactions.
Buyers can expect to pay more for homes and condos, although the increases may be moderating. Last month's system-wide median price of $660,000 was up 12.8% from the year-ago figure of $585,000. Comparing percentages, that was the smallest YOY increase since December 2020 when it was 12.2%.
"In May, we saw a slowdown in the steep price increases we have witnessed so far this year," observed John Deely, executive vice president of operations at Coldwell Banker Bain. He noted prices for single-family home sales (excluding condos) in King County jumped from $775,000 in January to a whopping $995,000 in April, a change of $220,000 in only four months (a jump of 28.4%). Prices for single-family homes in King County were nearly unchanged from April ($995,000) to May ($998,888).
"Rising interest rates coupled with inflation are causing buyers that rely on conventional mortgages to reconsider the affordability, and possibly take a break or look in areas that are less costly," Deely commented. "We seem to be heading from an extreme seller's market toward a more balanced market with increasing inventory."
J. Lennox Scott also commented on market adjustments. "Unsold inventory is ticking upward locally as more new listings hit the market. This gives buyers an increased selection of desirable properties to choose from as they hunt for their new home," said Scott, the chairman and CEO of John L. Scott Real Estate.
"Though there is still a steady backlog of buyers in the market, the increase in inventory means each home will receive fewer offers and may not go pending the first weekend," Scott remarked, adding, "Seasonal home price flattening is also in play, which means premium pricing is off for most properties."
NWMLS figures show last month's sales fetched 105.7% of the asking price, down from April when it was 107.7% and March when it was 108.2%.
Scott also noted luxury sales activity has held steady due to strong buyer demand in the Puget Sound area. He attributes this to "a backlog of buyers along with factors like job growth and our thriving local economy."
MLS figures show there were 95 sales of properties priced at $2 million or more in January. That number rose to 136 in February, 325 in March, 389 in April, and 353 in May.
Frank Wilson, Kitsap regional manager at John L. Scott Real Estate, is detecting "light breezes of change" in that county. "Homes are staying on the market a few days longer. We are still receiving multiple offers, but not as many." He also noted inventory is slowly growing. MLS figures show supply in Kitsap County is up nearly 39% from a year ago.
"Finally, some balance in the market for homebuyers," exclaimed Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. "Last month provided more buying opportunities due to increasing number of new listings and more flexible sellers willing to work with buyers on finance and inspection contingencies," he remarked, but also reported, "Price reductions are on the increase from sellers as overpriced properties are languishing on the market."
"Things have changed," agreed Dick Beeson, managing broker at RE/MAX Northwest Realtors in Gig Harbor. "Sellers who expect to get more than their asking price are unhappy if they receive offers only slightly above their list price. Sellers are now more often required to consider offers contingent upon financing, inspections, or the sale of the buyer's home. Things that were normal in purchase contracts just two years ago are making their return," he stated.
Beeson expects inventory will continue to grow as more sellers realize now is the time to sell. "Otherwise, their home's appreciation simply becomes unrealized phantom equity, especially if prices fail to continue their dizzying upward spiral." And, he suggested, "That day is drawing near."
Despite some conditions tilting to favor buyers, Beeson said some buyers have given up hope, choosing to sit on the sidelines waiting for a more "normal" or falling market. "Those days are a mirage."
Reflecting on his 40 years in the business, Beeson wondered, "Who would ever imagine increases of nearly 65% in inventory in Pierce County and nearly 36% in Pierce and King County would only produce less than a month's supply of homes for sale? Imagine prices escalating at 15% or more a year, yet the number of closed sales is falling. Imagine buyers looking at the increased inventory, and increased prices, and still experiencing serious competition with a plethora of other buyers for most homes. That's the world of today in Western Washington!"
Would-be owners of condominiums will find limited choices with inventory down more than 9% from a year ago. Prices are up nearly 15%, rising from $435,000 to $500,000.
"The only constant is change," said Gary O'Leyar, another broker with decades of experience. "Although we have been through a long run-up in the market, history tells us that the real estate market never remains static. There is a definite shift in buyers' patterns," according to O'Leyar, the designated broker/owner at Berkshire Hathaway HomeServices Signature Properties in Seattle.
O'Leyar also noted there are many "micro-markets" within each county. Within King County, for example, Northwest MLS tracks data for 30 map areas. Last month's median sales prices ranged from $565,400 in the area encompassing Dash Point and Federal Way to nearly $2.6 million on Mercer Island. Also notable is area 720 where Shoreline and Lake Forest Park are located. That area had a year-over-year price bump of 52.4%, with the median price surpassing $1 million for the first time, according to MLS records. In nine of the 30 map areas in King County, median prices exceeded $1 million last month.
O'Leyar acknowledged "outside influences beyond our local control" are factors contributing to market changes. He cited interest rates and the price of gasoline among them.
There are local dynamics that also impact activity, O'Leyar emphasized. "Employment is a significant barometer," he suggested. "King County enjoys an extremely low unemployment rate, recently at about 2% which is notably below the state and national rates around 4.1% and 3.6%, respectively. When clients ask for market forecast opinions, my consistent 'go to' reply has been "Watch the employment numbers along with population numbers of people entering or exiting the market. It's basic supply and demand."
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/716170694">NWMLS May 2022 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.
2022-06-07T14:32:00-07:002022-11-06T12:23:39-07:00Matthew Lahtitag:pnwr.com,2012-09-20:7635Improving housing inventory, rising costs may bring some 'normalcy' to Western Washington marketKIRKLAND, Washington (May 5, 2022) - Rising interest rates and inflation, coupled with a slight improvement in inventory, may bring some normalcy to Western Washington's frenzied housing market suggesting some brokers with Northwest Multiple Listing Service.
"The Puget Sound housing market has shifted down several levels of hotness in most areas and is more in alignment with the strong market we saw pre-pandemic," stated J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.
Commenting on a new Northwest MLS report summarizing April activity, Scott noted a "slight increase" in unsold properties, adding, "Not all homes are selling within the first week on market." He believes the "intensity adjustment means multiple offers will not be as commonplace as they've been in the last two years." He also indicated premium pricing (above asking price) is softening as well. He expects the "normal seasonality in the real estate market will be more pronounced, bringing a bit of normalcy to home buyers and sellers," but believes there will still be an "elevated buyer focus on each new listing."
Last month's sales of single-family homes and condominiums across 26 counties in the report had a list price to sales price ratio of 107.8%, which was down from March when it reached a 12-month peak of 108.2%. A year ago, the ratio was 106.6%.
The latest MLS report showed a mix of positive and negative numbers.
Member brokers added 11,681 new listings of single-family homes and condos during April, the highest number since last July when 12,916 listings were added, prompting some upbeat comments: "Did you hear that? It's the sound of happy buyers in all areas other than King County celebrating last month's jump in active listings as it means they now have more homes to choose from," proclaimed Matthew Gardner, chief economist at Windermere Real Estate.
Only two counties, King and Jefferson, had year-over-year drops in inventory. "Unfortunately for King County buyers, the area is still desperate for inventory and competition is as fierce as ever," remarked Gardner.
At month-end, the selection of homes and condos in the database totaled 6,514, the highest level since September 2021 when there were 7,757 total active listings.
Notably, the number of new listings (11,681) surpassed the number of pending sales (9,760), to help boost inventory. Pending sales were down about 7.8% from a year ago and down 3% from March.
Commenting on April's improvement in total inventory compared to a year ago, James Young, director of the Washington Center for Real Estate Research at the University of Washington, suggested "This is evidence that interest rates are having a cooling effect on some parts of the suburban market and along the I-5 corridor."
Young also noted a sharp decline in condo inventory in King County from a year ago - down about 35% countywide, with even greater shrinkage in Southwest King County (-49%) and the Eastside (-42%). With a limited selection, sales in those areas also plunged, while prices increased. For condos system-wide the median price on last month's sales was $485,000 (up 15.5% from a year ago); in King County, where more than 60% of sales occurred, YOY prices rose 12.6%, from $460,000 to $518,000.
Area-wide prices for single-family home sales (excluding condos) in King County also increased, climbing nearly 20% from a year ago, from $830,000 to $995,000.
Closed sales of homes and condos slid from a year ago, from 8,791 to 8,344 for a drop of around 5.1%.
"We are starting to see signs of impact from the significant rise in mortgage rates earlier this year, such as an increase in active listings and months of inventory creeping higher, but the full impact will likely not be felt for a few months," said Matthew Gardner, chief economist at Windermere Real Estate.
Commenting on the growing inventory of single-family homes (up 27% from a year earlier), Young suggested that higher-priced homes requiring a mortgage "are feeling some heat from recent interest rates."
The NWMLS report shows there were about three weeks (.78 months) of inventory of single-family homes and condos combined at the end of April. By this metric, that is the highest level in nearly 18 months. MLS data show there were .80 months of supply in October 2020.
Despite the improving inventory, and in spite of rising interest rates, brokers report brisk activity and are not seeing prices ease much.
"One thing that has not been impacted by rising financing costs is home price growth," Gardner said, pointing to double-digit gains in nearly every county, "including a whopping 27% in Snohomish County, the highest by far in the four-county Puget Sound region."
Dean Rebhuhn, the owner at Village Homes and Properties, echoed Gardner's observations. "Even with rising mortgage rates, inflation and high gas prices, the housing market remains strong with prices continuing to increase," he commented, adding, "Inventory is improving in most counties giving buyers more choices and making sellers a little more flexible in considering financing and inspection contingencies." Rebhuhn also reported demand continues to create multiple offers on homes in key locations and on median-priced properties.
Gary O'Leyar, designated broker/owner at Berkshire Hathaway HomeServices Signature Properties, also commented on rising rates, suggesting they could present more opportunities for hopeful buyers that have been shut out of the previous market. "It may seem contrary to good news for prospective home buyers, but the increase in interest rates may have a positive side. We are seeing signs that the peak 'zeal' of the competitive offer frenzy may be leveling off a bit. While we might have seen 10 offers on an active listing, now we may see only five, or sometimes fewer."
O'Leyar is not expecting a dramatic change in the regional market but believes there could be a "leveling off" from the double-digit-plus year-over-year appreciation.
Another industry leader, John Deely, also reported high demand, saying increases in interest rates "haven't appeared to cool off the market quite yet." Deely, executive vice president of operations at Coldwell Banker Bain, pointed to statistics for single-family homes, noting total residential inventory in April was up in every county served by NWMLS except Jefferson - "and up by double digits in every county except three: Clark, Jefferson, and San Juan."
"Median prices on single-family homes have been skyrocketing so far this year with prices for sales in King County just shy of $1 million in April," he remarked, noting that figure reflects an increase of more than 28% (+$220,000) since January.
Brokers in Kitsap County report robust activity in all areas. "Kitsap sales remain brisk as we increase inventory and sales," reported Frank Leach, designated broker-owner at RE/MAX Platinum Services.
Open houses are attracting "huge turnouts," with accepted offers averaging 6.2% over asking prices.
The MLS report shows listings of homes and condos in Kitsap County are up nearly 36% from a year ago. Pending sales improved 6.9% YOY, with closed sales climbing 9.4%. The median price has increased more than 15% from twelve months ago, from $485,000 to $558,500.
Leach said new construction in Kitsap County is "racing forward" in all residential sectors. He described land sales as "flying off the shelf," but detected a softening of condo prices (down about 10% YOY) as inventory improved to 1.5 months of supply at month-end.
Young singled out the South Puget Sound region encompassing Lewis, Mason, and Thurston counties as showing some of the best values in median house prices. NWMLS figures show the median price of sales during April in Lewis County was $389,000; in Mason County, it was $420,000; and in Thurston County, it was $510,000. "It will be interesting to see how interest rates influence these markets as the search for value among first-time buyers continues," he remarked.
With mortgage interest rates drifting upward in anticipation of the Federal Reserve's hikes in its baseline interest rate, some brokers recommend quick action by prospective home buyers.
"We will not likely see interest rates back to 3%. Never before has it been more important to get pre-approved and get serious about finding a home as now," stressed Leach.
"Owning real estate is a hedge against rising inflation," emphasized Gardner, the Windermere economist. "Homeowners with a fixed-rate mortgage will always have the same monthly payment, even as other costs rise," he explained.
Lawrence Yun, the chief economist at the National Association of REALTORS, noted affordability "greatly worsened" in the first quarter of 2022, pointing to sustained price appreciation and higher mortgage rates. NAR reported the monthly mortgage payment on a typical existing single-family home with a 20% down payment rose $319, or 30%, from one year ago, to $1,383.
Yun said price declines are "unlikely," but he expects "more pullback in housing demand as mortgage rates take a heavier toll on affordability. Declining affordability is always the most problematic to first-time buyers who have no home to leverage, and it remains challenging for moderate-income potential buyers as well."
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/705545899">NWMLS April 2022 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-05-09T10:09:00-07:002022-06-06T10:15:46-07:00Matthew Lahtitag:pnwr.com,2012-09-20:7634Rising interest rates not yet slowing home sales or 'too concerning' for NWMLS officialsKIRKLAND, Washington (April 7, 2022) - Rising mortgage rates are not yet slowing home sales in most areas across Washington state, according to several brokers who commented on the latest statistical report from Northwest Multiple Listing Service. The report showed a 7.4% year-over-year drop in pending sales, but brokers suggested the decline is likely a reflection of limited supply.
"Typically, by now, we would start to see rising mortgage rates impacting homes sales and/or prices," observed Matthew Gardner, chief economist at Windermere Real Estate. "That has yet to happen despite rates rising significantly since the start of the year."
Freddie Mac reported the average rate for a 30-year loan rose to 4.56% last week, with rates climbing at the quickest pace in almost three decades.
Gardner said he expects mortgage rates to continue trending higher in the coming months, adding, "I will be watching to see if there are any negative market impacts, but as of now, I'm not too concerned."
Northwest MLS brokers reported 10,059 pending sales (mutually accepted offers) during March across 26 counties. That's down from the year-ago figure of 10,863, but compared to February, the volume of pending sales jumped nearly 31%.
Broker Dean Rebhuhn, the owner at Village Homes and Properties, also said rising mortgage rates have not slowed activity. "However, if homes are priced over the market, savvy sellers are making price adjustments." For now, Rebhuhn said multiple offers "are still the rule. Buyers are making strong offers, pre-inspecting homes, and making sure financing is in place."
Well-paying jobs and lifestyle needs are driving the market, with some buyers using investments, 401K funds, and family assistance, according to Rebhuhn. He noted Grays Harbor and Ocean Shores offer "good inventory and great values." Prices in Grays Harbor County surged nearly 25% from a year ago, rising from $280,000 to $349,950. That's about $489,000 less than the median price in King County.
"The market is following the normal seasonality of spring," according to J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. "This season brings more resale listings coming on the market."
The latest MLS report shows brokers added 11,197 new listings of single-family homes and condominiums to inventory during March, up from the year-ago total of 10,562. Last month's total is up from February's figure of 7,920 for a gain of more than 41%. It also marked the highest volume of new listings added during a month since September 2021 when members added 11,373 listings.
James Young, director of the Washington Center for Real Estate Research at the University of Washington, noted improvements in inventory in "many of the markets along the I-5 corridor." His analysis of active listings shows robust growth since January in several counties, including Snohomish (up nearly 54%), Lewis (up 47%), Thurston (up 42%), and Pierce (up nearly 40%), and Skagit (up 32%).
Nevertheless, with pending sales (10,059) nearly matching new listings, inventory remained limited system-wide. The MLS report shows only 0.58 months of supply, with King, Pierce, Snohomish, and Thurston counties all having less than two weeks of supply.
"When you consider at one time a normal market inventory was 4-to-6 months, we now consider that measure a relic of times gone by," commented Dick Beeson, managing broker at RE/MAX Northwest Brokers, adding, "We will not see such numbers of homes for sale for possibly a generation or more."
The supply squeeze is contributing to competition among hopeful homeowners and rising prices.
"We continue to see fierce competition for the available inventory," stated Frank Leach, broker/owner at RE/MAX Platinum Services. "Buyers have been very frustrated with some writing as many as 15 offers before landing on a home."
Median prices continue to escalate.
For last month's 7,989 completed transactions, the area-wide median price was $638,000, up about 16.4% from a year ago and up 9% from February.
Of the 26 counties in the report, only one county (Ferry) reported a year-over-year price drop, and only three counties had single-digit increases; all others had double-digit gains from a year ago.
Gardner noted median listing (asking) prices continue to rise, saying "this suggests that sellers remain quite bullish when it comes to pricing their homes."
Beeson described rising prices as being at "shock and awe levels," noting it is the third consecutive year for such escalations.
Northwest MLS figures show prices in the four-county region (King, Kitsap, Pierce, and Snohomish) have surged nearly $200,000 (38.5%) since March 2020, jumping from a median price of nearly $520,000 to nearly $720,000.
"With rising interest rates and fuel prices, it will be an interesting time for the markets along the I-5 corridor," remarked Young. "Increased costs make purchasing a home outside of the urbanized areas a less viable option for first-time buyers and others seeking value to move up the housing ladder."
Young believes the return to the city has begun in earnest. He also commented on steadily rising prices in King and Snohomish counties. "Since January, prices in King County are up 16.5% and up 10.5% in Snohomish County. No other counties in the central Puget Sound region break double digits in house price growth for this period."
Nevertheless, recent census reports indicate people are moving out of King County. Such reports are "allowing surrounding counties, such as Snohomish, Pierce, and Kitsap to prosper," surmises John Deely, executive vice president of operations at Coldwell Banker Bain. "In part, this is due to a lack of affordability and King County's inability to create new inventory given restrictions on development and the tight labor markets." He also cited work-from-home policies as "helping people decide to live in other places" - a trend he expects will continue.
Like many areas, Kitsap County is "dealing with a very active market with prices hitting unprecedented values as inventory remains extremely low," reports Leach. MLS figures show there is slightly more than a half-month supply (0.56 months of inventory).
The median price on last month's sales of single-family homes in Kitsap County rose 19.7% from a year ago, from $450,000 to $538,500. Year-over-year condo prices shot up nearly 54%, from $297,500 to $457,000.
"While we often speak in percentages, the actual numbers of listings are drastically low, and the demand is outstripping supply," Leach stated. On a brighter note, he added, "Kitsap continues to grow, and new inventory continues to pop out of the ground throughout the county. There are thousands of new residential, condominium, and apartment buildings under construction and due to be available in the fall of 2022."
Leach also noted rents are rising in Kitsap County, "and there appears to be no relief on the horizon." He suggests the only way to control future expenditures in housing is to own. "With interest rates on the rise, there is no better time to buy, refinance, or resize your real estate investment."
Deely saw hopeful signs in the March statistics. "King County's new listings last month exceeded the number of both pending and closed sales. Whenever new listings exceed pending, the standing inventory increases with more selection available for buyers. It's still a great time for sellers to come to the market due to buyers who are willing to pay a premium. While interest rates have gone up, slightly narrowing the buyer pool, there's still high demand."
Scott pointed to the overall economy "and specifically job growth in the central Puget Sound region" as factors for the future housing market. "For the local areas considered lifestyle and destination markets, we will be watching local in-migration as a key indicator of future home price appreciation."
Beeson acknowledged not everyone shares a rosy outlook, noting a report from the Federal Reserve Bank of Dallas that stated price and value have "become unhinged and now have little relationship to each other." He said they fear a housing bubble may be brewing, adding, "It does feel strange to be in a market that no one has experienced before. There is no road map for this one."
Commenting on an "unexpected 4.1% decline" in U.S. pending home sales, Lawrence Yun, chief economist at the National Association of REALTORS®, suggested the dip was mainly due to the low number of homes for sales, adding, "It is still an extremely competitive market, but fast-changing conditions regarding affordability ahead."
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/695058328">NWMLS March 2022 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-04-06T10:01:00-07:002022-06-06T10:08:47-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6817Multiple offers the norm for home buyers, but may ease with uptick in listingsKIRKLAND, Washington (March 7, 2022) – Multiple offer situations are the norm for today’s home buyers, but some brokers with Northwest Multiple Listing Service suggest February’s improving inventory and a slowing pace of price increases may ease some of the competitive pressures.
Commenting on the latest statistical report from Northwest MLS, representatives of the service expressed optimism for the housing market as pandemic-related restrictions ease, but also uncertainty due to the global economic crisis around Russia’s invasion of Ukraine.
“In February, we saw an increase in listings, which could be an indicator that more sellers are primed and ready to go. Inflation, rising interest rates, and new financing options are bringing more sellers into the market,” said John Deely, executive vice president of operations for Coldwell Banker Bain.
Northwest MLS brokers added 7,920 new listings to inventory during February, a 6.8% improvement from a year ago, and a gain of more than 33% from January’s total of 5,927. Pent-up demand led to big month-over-month gains in pending sales and more shrinkage in overall supply.
“Buyers in King County are jumping for joy over the nearly 40% increase in new listings that we saw in February compared to January (2,901 vs. 2,083),” noted Matthew Gardner, chief economist at Windermere Real Estate. “No surprise,” he continued, “the result was a 31% increase in pending home sales month-over-month, as well.”
Sellers system-wide accepted 7,697 offers on their homes during February, about the same number (7,724) as a year ago, but a 21% jump from January’s volume of pending sales (6,350). Fourteen of the 26 counties in the MLS report had fewer pending sales than a year ago, a likely consequence of tight supply.
Closed sales also reflected 2022’s slower start compared to a year ago. Member-brokers logged 5,147 closed sales during February, a drop of 665 units (down 11.4%) from a year ago. This year’s volume of completed transactions through February is lagging year-ago totals by 12.6%.
Prices continue to trend upward. The area-wide median price for last month’s closed sales of single-family homes and condominiums was $585,000, up 14.3% from a year ago, and up 5.4% from January.
Prices for single-family homes (excluding condos) rose at a smaller rate, about 12.2%, increasing from $535,000 a year ago to $600,000 last month. Commenting on the increases, Gardner noted some areas were “clearly very popular” with buyers of single-family homes because they had especially strong growth. He singled out West Bellevue, West Lake Sammamish, and Redmond on the Eastside, and in Seattle named Ballard, Magnolia, and Queen Anne.
Condo prices soared nearly 23% area-wide, with a YOY jump from $399,000 to $490,250.
“With median prices up in all but three counties, buyers who are sitting on the sidelines waiting for prices to come down could be waiting some time,” suggested Deely. “Seasonal trends will bring more listings, but there is a large pent-up demand as well.”
Sellers are fueling some of the demand, according to Deely. “Every seller is generally also a buyer and many placed their real estate dreams on hold during the pandemic. They are now ready to take action and explore their next chapter.”
Industry analysts believe conditions will probably continue to favor sellers.
At the end of February, there were 3,461 total active listings in the MLS database, up from January’s total of 3,092 for a gain of nearly 12%, but down about 19.5% from twelve months ago when inventory included 4,298 listings of single-family homes and condominiums.
Measured by months of supply, there were about 19 days (0.67 months) at the end of February. That was the highest level since September 2021 when the MLS reported 0.75 months of supply.
“As we head into spring, it’s time for buyers to reenergize and go through a renewal of spirit as they begin or continue their home search,” stated J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Buyers will be pleased to hear that more listings are on the way! Historically, the number of new listings bumps up in March and April, and then goes up even higher in May and June.”
Until inventory grows, Scott expects “heightened focus on each new listing coming on the market.”
“It seems even homes that wash up on the beach are getting multiple offers,” said Dick Beeson managing broker at RE/MAX Northwest Realtors, “The sound of interest rate increases is ever nearer, and when coupled with the enormous price increases for homes around Puget Sound, the wringing of buyers’ hands will surely be a sad tale of 2022. There’s no relief in sight.”
A comparison of counties around Puget Sound shows positive growth in inventory and closed sales in Kitsap County. In King, Pierce, and Snohomish counties both listings and closed sales trended downward.
“Market activity is up across the board in Kitsap,” stated Frank Wilson, branch managing broker and Kitsap regional manager at John L. Scott Real Estate. “We have more new listings (up 30.6%), more total active listings (up 36%), and more pending transactions (up 10%) compared to last year’s numbers. Also, home prices continue to rise (up nearly 23%). This is concerning because we are just starting into the spring market.”
Wilson reported increases in customer calls to the office and more people at open houses, remarking, “We have not even gotten out our garden gloves for spring.” He expects the year will be “a real squeeze for home affordability in Kitsap County,” citing rising prices and projected increases in interest rates. “This will just make it harder for buyers who are already struggling to have an offer accepted.” He anticipates seeing multiple offers on homes.
Gary O’Leyar, designated broker/owner at Berkshire Hathaway HomeServices Signature Properties, reported a continuation of the multiple offer market in February. “There were instances when our brokers made 10 or more offers for buyers before reaching successful purchase agreements.”
O’Leyar said one recent would-be purchaser made a strong offer of $250,000 over the asking price of $2 million on a new listing in the Tangletown/Wallingford neighborhood, only to beat out by several hundred thousand dollars. “This is not uncommon,” he said, adding “The extreme dynamics of the market underscore the importance of buyers getting assistance from a knowledgeable, patient, persistent broker.”
Commenting on rising prices and low inventory, broker Dean Rebhuhn, owner of Village Homes and Properties, said multiple offers are the norm. “I’ve been asked many times if the housing market is going to have a correction.” He believes it will not, citing five factors:
High job growth and high pay.
• Remote hybrid work models.
• Consumer willingness to drive to locations along I-90, I-5, I-405.
• Investor interest in residential rentals, plus political pushback on short-term rentals.
• Increasing demand for second homes located in high amenity communities within driving distance of Puget Sound, and particularly the Eastside.
Whether higher gasoline prices will have an impact on the market remains to be seen, suggested O’Leyar. “In the pre-pandemic past, increasing gas prices tended to create higher demand for shorter commute locations closer to the center of Seattle’s business district. This could cause a slight shift in the extreme demand for listings between King and Snohomish counties.”
Other unknowns are the impacts of rising mortgage rates and geopolitical tensions.
“Something on everyone’s minds is how the invasion of Ukraine might affect the housing market here at home,” said Gardner. “While these events have helped push mortgage rates lower, it doesn’t mean they are on their way back to the historic lows of a year ago. In fact, that’s almost guaranteed not to happen.”
According to Freddie Mac, the average rate on a 30-year, fixed-rate mortgage was 3.76% on March 3, down from two weeks prior when it was 3.92%, the highest rate since May 2019. A year ago, the average rate was 2.81%.
The Mortgage Bankers Association forecasts average rates will be slightly above 4 percent by the end of 2022. Mortgage data provider Black Knight estimates the average borrower with a 20% down payment would pay about $100 more a month on a new mortgage than one taken out at the end of last year due to rising rates and higher home prices.
Danielle Hale, the chief economist for Realtor.com, said the pace of home price increases may slow from double-digit to single-digit percentages this year. She also expects conditions will likely continue to favor sellers.
Freddie Mac believes short-term mortgage rates will stay low but are likely to increase in the coming months. The mortgage finance giant said geopolitical tensions caused U.S. Treasury yields to recede last week as investors “moved to the safety of bonds.” Along with inflationary pressures, Freddie Mac points to “the cascading impacts of the war in Ukraine” for creating market uncertainty.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/596122517">NWMLS August 2021 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-03-07T13:51:00-07:002022-03-07T13:57:30-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6814Northwest MLS brokers see signs of busy spring market despite slow JanuaryKIRKLAND, Washington (February 7, 2022) - A frigid first week of January, surges in coronavirus cases, and depleted inventory were among factors brokers from Northwest Multiple Listing Service cited for last months slower than year-ago sales.
In newly released statistics for January, the MLS reported 6,350 pending sales of single-family homes and condominiums during January, about 1,000 fewer the same month a year ago for a drop of 14%. The year-over-year (YOY) number of closed sales also fell, dropping from 5,896 completed transactions to 5,085 for a decline of nearly 13.8%).
"When there's uncertainty, the default position for most sellers is to stay put, do nothing, and hunker down," suggested Mike Larson, managing broker at Compass Tacoma. He said many things are contributing to sellers' reluctance to put their homes on the market, "most notably, COVID, inflation, the economy, the holidays, and finding a replacement property. Security and certainty are more important than cashing in on record amounts of equity."
Broker-members added 5,927 new listings during January, nearly 1,000 fewer than the same month a year ago, but an improvement on December's volume of 4,617. Only five counties reported YOY gains in new listings.
Last month's pending sales outgained new listings to further shrink inventory. At month-end, the selection included a meager 3,092 active listings, down more than 30% from a year ago. There are about 2.5 weeks of supply (0.61 months) across the 26 counties served by Northwest MLS.
King County had the steepest drop in active listings, shrinking nearly 59% from a year ago, followed by Jefferson County, down 40%, and Snohomish County, down more than 35%.
A comparison of counties in the listing service report shows only about half of them have more than one month of supply, and these areas tend to be in more rural areas. King, Pierce, and Snohomish counties all have less than two weeks of supply. Kitsap County is slightly better with 0.58 months.
"The year started off with more of a whimper than a boom thanks to listing inventory in King, Pierce, and Snohomish counties being lower than any January on record," observed Matthew Gardner, chief economist at Windermere Real Estate.
"The market remains virtually sold out, and there is a significant backlog of buyers looking for a home to purchase," reported J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. With higher mortgage rates expected, he said buyers are more anxious to get home, even during the inventory shortage.
"Given the market conditions, nearly all homes are going under contract within a week of being listed, and multiple offers are commonplace in price ranges where there is a shortage of available homes for sale," added Scott.
Meredith Hansen, founder and operating principal at Keller Williams Greater Seattle and a member of the Northwest MLS board of directors, agreed to say, "The market in Seattle continues to be extremely competitive with multiple offers and prices escalating. The imminent rise in interest rates has buyers scrambling to find properties to buy."
Larson, also a director at NWMLS, emphasized rates are still historically low. Expected increases "may be spooking some buyers, but it's also getting others off the fence."
"Strong activity along the I-5 and I-90 corridors outside of the Seattle area continues with strong double-digit price increases being recorded," noted James Young, director of the Washington Center for Real Estate Research at the University of Washington. He expects strong demand and a search for value outside of Seattle will continue to push up values.
Last month's prices were up nearly 14.9% from a year ago, climbing from $483,250 to $555,000. Five counties reported price gains of 30% or more, led by Okanogan at 46.3%. Other counties with price increases of at least 30% were Chelan, Kittitas, Pacific, and San Juan.
Condominium prices surged nearly 21% area-wide, rising from $359,950 to $435,000, while the number of new listings, active listings, pending sales, and closed sales all declined from the same month last year.
Young said the combined price trend and activity levels suggest suburban growth should continue for a while longer as households seek lower costs and a more home-based lifestyle.
"The market is crazy," exclaimed Dick Beeson, managing broker at RE/MAX Northwest Realtors. "We've been experiencing huge increases in median sales prices and a continued lowering of the number of days homes are on the market. The massive reduction in inventory has led to fewer pending sales and super-charged prices. Many properties have literally gained 40%-to-50% appreciation in just the last two years or so - a rate of increase no one can comfortably live with."
Kitsap County was one of the few areas with YOY gains in new listings (up 22.3%) and only single-digit changes in active listings (-6.4%), pending sales (+8.4%) and closed sales (-2.14%). However, like nearly all the counties in the MLS report, prices jumped by double digits (up 20.8%).
"New construction in Kitsap County is roaring ahead to meet buyer and renter demands," stated NWMLS director Frank Leach, broker/owner at RE/MAX Platinum Services. "We are seeing unprecedented construction in all areas of the county in both the residential and commercial arenas. There are more than 670 rental units currently being built in Bremerton and Silverdale alone and building permit activity at the county is at an all-time high at 3,321 units."
Leach said available inventory is being snatched up quickly in a rush to take advantage of low-interest rates. He also said they are not expecting a flood of inventory coming from foreclosures in part because of the 12%-to-18% increase in equity over the last 12 months. "Forbearance across the U.S. is below 800,000 units, down from over 4.5 million in 2020," he noted, citing several sources.
Despite the slow start in sales and persistent shortages of inventory, the MLS brokers expect robust activity during 2022.
"The market dipped slightly in January, mainly due to weather and concerns over the latest pandemic variant, but the general feeling is that it's going to be a good year," said John Deely, executive vice president of operations at Coldwell Banker Bain. Commenting on last year's record-setting volume of closings, he believes "rate increases during 2022 combined with the sunset of the pandemic will bring more sellers to the market."
"People waiting longer to sell their home should not expect the same steep price increases we were seeing in 2021," Deely said, adding, "An influx of people coming to the market and a decrease in the buyer pool due to interest rates going up should help to keep prices level."
Dean Rebhuhn, owner of Village Homes and Properties, said rising mortgage rates and the addition of inventory as spring arrives should bring more opportunities for buyers. "I see no buyer hesitation caused by rising interest rates," he commented, adding, "Many buyers are considering homes farther north, south, and east with more affordable prices and more selection. Hybrid work-from-home conditions are allowing more flexibility for buyers. Job demand and lifestyle choices continue to drive sales."
Also commenting on the outlook for 2022 was economist Gardner. "One of the biggest questions for 2022 is how the market will be further impacted by the work-from-home paradigm given that many companies have postponed their long-term WFH plans. This is likely holding back sellers during a time when we desperately need additional inventory, as well as buyers who are concerned about rising mortgage rates."
Gardner said he expects more sellers will list their homes and more buyers will start their searches once they know how often they need to commute to work, and this may lead to a busier spring market than expected.
Beeson believes there will not be any substantive market changes, come spring, "except for higher interest rates. That may be. But someone please explain that to a desperate buyer willing to pay more, accept less, and be glad they did."
Leach is optimistic of upticks in activity, dismissing suggestions of a "bubble," saying "We don't see that happening in Kitsap or in the Pacific Northwest." He also advises against postponing purchasing. "If you think you are saving money by waiting, you should run the numbers. Economists and pundits in real estate all say buy now. The anticipated increase in equity across the next two-to-four years will be astonishing."
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/596122517">NWMLS August 2021 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-02-08T13:16:00-07:002022-03-07T13:57:59-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6819Northwest MLS brokers tally 107,354 sales during 2021 valued at more than $75 billionKIRKLAND, Washington. (January 19, 2022) - Northwest Multiple Listing Service member-brokers reported 107,354 closed sales during 2021. That marked the first time the annual sales volume surpassed 100,000 transactions. Last year's completed sales were valued at more than $75 billion, eclipsing 2020's figure by nearly $18.9 billion for a year-over-year (YOY) gain of almost 33.6%.
Sales of residential (single family) homes and condominiums during 2021 outgained 2020 by 11,594 transactions for a 12.1% increase. Of the total completed sales, around 86% (92,713) were single family homes and the remaining 14% (14,641) were condominiums.
The activity in the Northwest MLS report reflects the work of more than 36,000 brokers in 26 counties. Collectively, these counties encompass more than 83% of the state's population.
Last year's robust sales came despite record low inventory. No month had more than a month of supply. In general, industry analysts define a balanced market as having 4-to-6 months of inventory. A check of Northwest MLS records shows the last time there was at least four months of inventory was in February 2014.
Further evidence of a seller's market is indicated by the ratio of listing, (or asking) price to sales price. For last year's sales, buyers found themselves in competitive bidding situations, often paying above asking price. Overall, buyers paid an average of 104.7% of the listing price. Buyers of homes in King County paid 106.6%, followed by purchasers in Snohomish County who paid 106%.
The area-wide median price for last year's sales of single family homes and condominiums (combined) was $565,000, a (YOY) jump of nearly 19% from 2020's figure of $475,000. All but two counties reported double-digit price gains in 2021 compared to 2020.
Prices for single family homes (excluding condominiums) increased 20.4% system-wide, jumping $100,000, from $490,000 in 2020 to last year's median sales price of $590,000. A comparison of counties shows San Juan County with the highest median price for single family homes at $860,000. That's up 26.8% from the 2020 figure of $678,000. Not far behind was King County where the median sales price was $828,111. Prices there rose 14.2% from 2020.
Ferry County had the lowest median selling price at $230,000, but on a percentage basis prices surged 42.4%, surpassing all other counties.
Condo prices area-wide rose 11.8%, from $380,000 in 2020 to $425,000 for last year's sales. In King County, which accounted for about six of every 10 condo sales (59%), the median price was $459,000, up a modest 6.7% from 2020.
Inventory was sparse throughout the year as brokers scrambled to replenish supply. Brokers logged 121,025 pending sales (mutually accepted offers) during 2021, while adding 117,948 new listings. At the start of 2021 there was 0.75 months of inventory but as the year closed supply dwindled to 0.40 months (about 12 days), keeping sellers in the more favorable position.
A comparison of property types shows depleted selection for both single family homes and condominiums. Based on a monthly average, last year's buyers looking for single family homes (excluding condos) could choose from 4,666 listings. That was 2,389 fewer per month than averages for the previous year, a drop of nearly 34%.
Condo seekers fared even worse. On average, there were just 998 condos offered for sale each month during 2021. The year before, condo shoppers could choose from a monthly average of 1,611, or 613 more units per month.
Tight supply contributed to escalating prices.
MLS members reported 14,614 sales of single family homes priced at $1 million or more during 2021. That was a whopping 75.8% more than 2020's total of 6,301 million-dollar-plus sales.
High-end condo sales were up 51.5% YOY. Last year, brokers reported 5,381 sales of condos priced at $500,000 or higher. In 2020, they sold 1,828 such properties.
Of the luxury home sales, 174 fetched $5 million or more. Topping that list was a gated estate in Seattle with 161 feet of Lake Washington waterfront that sold for $30,750,000. Three other homes - all on the Eastside -- commanded prices of more than $20 million.
Twenty-one condos had sales prices upward of $3 million, including three that sold for more than $6 million. The most expensive among these was a top floor penthouse at Escala in downtown Seattle that sold for $7 million. Another penthouse at the same high-rise building had a selling price of $6,625,000, while a condo on Kirkland's waterfront drew a buyer who paid $6.5 million.
Less than 6% of last year's sales of single family homes system-wide sold for less than $300,000. About half (48.8%) had sales prices between $500,000 and $1 million dollars.
Almost two-thirds of condos (63.1%) sold for a half-million dollars or less.
Sales Prices
SFH
Condo
<$299,999
5.92%
20.66%
$300,000 to $499,999
29.41%
42.44%
$500,000 to $749,999
32.96%
22.86%
$750,000 to $999,999
15.81%
8.73%
$1,000,000 to $2,499,999
14.39%
5.03%
$2,500,000 & higher
1.51%
0.27%
TOTALS
100.00%
100.00%
Of last year's sales 12,203 units, or about 11.5%, were new construction. Those new homes included 10,857 single family homes that sold for a median price of $659,000, and 1,346 newly built condos that had a median sales price of $701,365.
Among other highlights in its annual compilation of statistics, Northwest Multiple Listing Service reported:
Brokers added 117,948 new listings during the year, up 6.6% from the previous year's total of 110,599. June was the busiest month for replenishing inventory; brokers added 13,111 new homes and condos during that month.
Pending sales totaled 121,025 for the year for a slight improvement (about 2%) from 2020 when there were 118,607 mutually accepted offers.
Ten counties ended 2021 with double- or triple-digit gains in closed sales.
The median price for a 3-bedroom home ranged from $239,900 in Ferry County to $836,550 in San Juan County.
Prices vary widely when comparing school districts in the MLS service area. In six districts, the median sales price for single family homes was $1 million or higher, led by Mercer Island at $2,222,500. Also in this seven-figure segment were three districts in King County: Bellevue, Issaquah and Lake Washington, along with school districts in Bainbridge Island in Kitsap County and Lopez Island in San Juan County.
Average prices for single family homes (excluding condos) in the tri-county areas of King, Pierce and Snohomish have skyrocketed since 1991:
From 1991 to 2001 prices rose 88.8% in King County, 57% in Snohomish County and 32.3% in Pierce County.
From 2001 to 2011 prices increased 31.2% in King County, 16.2% in Snohomish County and 23.5% in Pierce County.
From 2011 to 2021 prices surged 249% in King County, 274% in Snohomish County and 258% in Pierce County.
A closer look at 8,580 condo sales within six "sub areas" of King County (where nearly 60% of all condo sales were located) shows Seattle accounted for 3,373 of them (about 39%), followed by the Eastside with 36%. The priciest condos, with a median sales price of $550,000, are on the Eastside, followed by Seattle ($495,000). Head south for more affordably priced condos. In the Southwest part of King County, the median sales price was $280,000, followed by the Southeast segment at $340,000.
Tri-county comparison of average prices since 1990.
Includes single family homes and condominiums
Year
King
Snohomish
Pierce
1991
169,033
144,063
132,540
2001
295,240
222,077
174,536
2011
392,185
253,364
213,466
2021
943,739
697,892
546,318
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2022-01-20T14:01:00-07:002022-03-07T14:12:39-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6813Northwest MLS brokers end 2021 with depleted inventory, rising prices, weather disruptionsKIRKLAND, Washington (January 6, 2022) - Severe shortages of inventory, record-low temperatures, and snow restrained December housing activity around Washington state beyond expected seasonal slowdowns, according to a new report from Northwest Multiple Listing Service.
Summary statistics from the MLS show the volume of new listings added area-wide dropped 12.3% during December compared with the same month a year earlier. Year-over-year inventory, pending sales, and closed sales all fell by double digits. Only prices rose - up 17.4% overall for homes and condominiums that sold across the 26 counties in the report.
The median price for last month's closed sales was $572,900, up from twelve months ago when it was $488,000. Prices for single-family homes (excluding condos) surged nearly 17.5%, from $502,247 to $590,000. King County was one of only three counties where the single-family price change was under 10%; prices there rose from $740,000 to $810,000. A dozen counties had price jumps of 20% or more.
Condo prices jumped 17.6%, from $370,000 to $435,000. San Juan County reported the highest median price for last month's condo sales ($642,500), followed by Snohomish County ($500,000).
Northwest MLS brokers reported 8,017 closed sales last month, a drop of nearly 1,000 transactions from the year-ago total of 9,008. Eleven counties had double-digit declines, including King (down 16.3%) and Snohomish (down 17.6%). October was the only other month during 2021 when year-over-year sales fell.
Commenting on the slowdown in sales, Dick Beeson, managing broker at RE/MAX Northwest Realtors, said, "That's to be expected considering inventory in the fourth quarter was down sharply from last year. You can't sell what isn't there."
Despite hurdles (including pandemic-related), Northwest MLS brokers tallied 107,354 closed sales during 2021, an increase of 12.1% from the previous year when they notched 95,760 closings.
(Please note: The NWMLS Annual Highlights Report with comprehensive summaries of activity will be released on Jan. 19.)
John Deely, executive vice president of operations at Coldwell Banker Bain, noted median home prices in 2021 tended to rise each month in most counties served by NWMLS, "but December came in flat," which he said signals a leveling off in appreciation while demand is still high. "The Fed (Federal Reserve System) signaling interest rate increases have caused some sellers to be somewhat more aggressive in getting their homes sold," he added.
"Condos continue to be swarmed by first-time buyers," reported Deely, a member of the Northwest MLS board of directors. "We aren't seeing as many relocation buyers, a result of remote work during COVID. As companies start to make decisions about working in the office, we will start to see that market pick up."
Even though the number of pending sales, at 5,850 overall, declined more than 15% from a year ago, they far outstripped the number of new listings (4,617), contributing to the meager month-end inventory. In fact, a search of NWMLS records going back a decade indicates the 3,240 active listings of homes and condos area-wide is the first time the selection has dipped below 4,000 listings. A year ago, buyers could choose from 4,739 active listings while in November there were 4,621 properties in the MLS database.
Stated another way, there were less than two weeks of supply (0.40) at month-end. Inventory was even more sparse in seven counties, with Snohomish having the most acute shortage at 0.20 months. Other counties that fell below 0.40 months were Clark (0.26), King (0.27), Island (0.29), Pierce (0.32), Thurston (0.31), and Kitsap (0.38).
"Smart buyers are making their best offers using pre-inspections, family support, bridge loans, leveraging 401(k) accounts, and other resources," according to Dean Rebhuhn at Village Homes and Properties. Mortgage interest rates are the wild card, he believes. "How much will they rise and what effect will they have on the market? With current rates in the low 3% range and a forecast of three rate hikes this year, probably not much," he suggested.
"Last year was quite a year for the housing market," stated Matthew Gardner, chief economist at Windermere Real Estate. "Even in the face of historically low inventory levels, home sales in the Central Puget Sound area still managed to rise to levels not seen since 2006 and, notably, Pierce and Kitsap counties had more sales than ever before.
"Historically low mortgage rates and the ongoing pandemic led to a flood of buyers in a market with relatively few homes for sale. This caused prices to rise by double digits throughout the Puget Sound area," Gardner remarked, adding he expects the pace of price growth to slow significantly in the coming year due to rising mortgage rates and affordability constraints.
More supply would be beneficial, suggested Gardner. "The Puget Sound region is in dire need of more housing units which would function to slow price growth of the area's existing housing. However, costs continue to limit building activity, and that is unlikely to change significantly this year."
Frank Leach, broker/owner at RE/MAX Platinum Services, said builders in Kitsap County are putting up new communities of single-family homes and condominiums "as fast as they can. Buyers are looking for relief in 2022, hoping inventory will become available." For now, he described available inventory as "drastically low." Buyer pressure is bidding up values, and "there is an inordinate amount of institutional cash buyers in our market."
"Sellers are frustrated trying to find replacement properties. We are seeing more contingent offers being accepted, allowing sellers some breathing room to select their next home and sell their existing home." Leach said this trend, coupled with new lending strategies "allow sellers to address the market as though they are cash buyers with conventional 20% down programs."
"We continue to see an influx of buyers from markets east of Kitsap County looking to telecommute from or completely relocate to our county," Leach commented, adding "the overall outlook for Kitsap County is excellent with billions of new money coming from government and private sector projects."
J. Lennox Scott, chairman and CEO of John L. Scott, described the current market as "truly historical," noting 2021 was one of the best years on record for pending sales in the Puget Sound region. "The week of snow and ice that hit Puget Sound in late December delayed the big kickoff to the 2022 housing market by about a week. This held back buyers who have been waiting patiently for each new listing to hit the market."
The year-end storms did not dampen Scott's optimism for 2022. "Fresh on the heels of the holiday season and snowy weather, the local market will see continued strong buyer demand, multiple offers, and premium pricing. This year is poised to be another great year in residential real estate," he exclaimed.
Rebhuhn agreed. "We will experience strong demand and very active home sales in 2022," he predicts, but added, "and maybe a slight dip in price increases."
Beeson expects 2022 will be similar to last year, with both opportunities and challenges. "The buying and selling process will not become any easier," he stated.
"Once again we start the real estate dance where buyers are chasing sellers. Sellers are chasing their replacement home, and brokers are chasing those elusive listings." Like many of his colleagues, Beeson expects interest rates to climb. "Prices will also rise, albeit not as quickly as during 2021."
Economist Gardner predicts single-family home prices will rise by "high single digits" in King County, and by more than 10% in Snohomish and Pierce counties.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/596122517">NWMLS August 2021 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2022-01-07T13:10:00-07:002022-03-07T13:58:17-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6811Northwest MLS brokers not seeing much seasonal slowdown, say buyers still need to be boldKIRKLAND, Washington (December 6, 2021) - Historically soggy weather and the onset of holidays did not deter thousands of buyers and sellers during November, based on the latest report from Northwest Multiple Listing Service. Numbers for new listings, pending sales, and closed sales were comparable to year-ago totals, while prices rose a little more than 15%.
"The so-called seasonal slowdown normally sees serious buyers gain an advantage over casual buyers who take a break during the holidays. The difference this year is that there are fewer buyers taking a break and demand remains high," reported Mike Larson, managing broker at Compass in Tacoma.
Northwest MLS figures show 8,571 pending sales across 26 counties last month, nearly matching the year-ago total of 8,584 mutually accepted offers. The 8,976 closed sales marked a slight improvement on twelve months ago when MLS members tallied 8,875 completed transactions (up 1.14%).
"Waived inspections and funds committed upfront in the event of a low appraisal are not as common, but sellers still have the upper hand," according to Larson, a member of the Northwest MLS board of directors. "Buyers still need to be very bold and very intentional with their offers."
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, echoed Larson. "Typically, we see a lull of sales activity during late fall and into early winter. While there are fewer transactions at this time of year, the intensity for each new listing going under contract is extremely high," Scott remarked, noting there were substantially more homes going under contract (8,571) than there were new listings (6,455).
Twenty of the 26 counties in the NWMLS report added more new listings during November than a year ago, but with demand outstripping supply, inventory was meager in many areas.
Area-wide, there were 4,621 active listings of single-family homes and condominiums at month-end, down nearly 29% from a year ago when there were 6,505 listings. The selection at month-end amounted to about two weeks of supply (0.51 months). Five counties had even less supply: Snohomish (0.24 months), Thurston (0.35) King (0.38 months), Clark (0.39), and Pierce (0.44 months).
"The pandemic continues to put pressure on home sales and prices," stated Dean Rebhuhn, owner of Village Homes and Properties. "Historic low inventory is still influencing multiple offer situations in King, Snohomish, and Pierce counties," adding, "Increasing interest rates have not slowed the pace of sales."
Rebhuhn also said they are seeing "accelerated activity in Kittitas and Grant counties, along with rising prices." He noted the I-90 location of counties east of King County favor work-from-home hybrid models. "Lifestyle changes and a strong job market will continue to drive the market into 2022 and beyond."
NWMLS board member John Deely, executive vice president of operations at Coldwell Banker Bain, observed King County prices, currently at $740,000, have been trending downward since July when this year's prices peaked at $789,000. Total active listings are spiraling downward as well, with King County's supply down 60% from a year ago, which he said: "speaks to the continued inventory crunch."
"To put this into further perspective, King County had only 1,149 active listings at the end of November - the lowest inventory I can remember - and a 90% decrease since November 2010 when there were 11,867 active listings," Deely commented, adding, "This is hampering existing sellers from moving up. Baby boomers find themselves in large homes and not needing the space, but they are hesitant to sell without a place to go should they want to stay in the region."
On a brighter note, Deely said new financing options are expected to develop during 2022. He mentioned the "modern bridge loan," which would give homeowners the ability to sell their current residence after they've found and purchased their new home.
Veteran broker Gary O'Leyar, the owner of Berkshire Hathaway HomeService Signature Properties, said every year has its own market dynamics, but with seasonal similarities most years. For example, he noted within the Seattle map areas in the MLS report, "extreme appreciation has leveled off." The Northwest MLS report shows prices within Seattle are essentially the same as a year ago: $765,000 for November's closed sales, compared to the year-ago figure of $760,000. Elsewhere, for example, for the Eastside and Southeast King County map areas, prices jumped more than 26% from a year ago.
O'Leyar also noted, "Given what has been the extreme shortage of inventory in the Seattle market, there is currently a seasonal market opportunity for Seattle urban shoppers for condominiums and townhomes." His recent search for townhomes (usually classified in the MLS database as single-family dwellings) uncovered a surprising number of such listings in some Seattle neighborhoods. "Tis the season could ring true for those seeking this type of urban dwelling," he commented.
Brokers in Kitsap County described the market there as "fast-moving" with buyers vying for the limited inventory (slightly more than two weeks of supply).
"Homes are coming off the market faster than they are coming on. We have, however, seen a decrease in the number of multiple offers on new listings, and we continue to see steady open house traffic," said Frank Wilson, Kitsap regional manager and branch managing broker at John L. Scott Real Estate. "With this fast-paced market, if a seller puts their home on the market in early December when there are fewer listings but still a lot of buyers, it could likely be off the market by Christmas."
Another broker in Kitsap County, Frank Leach, broker/owner of RE/MAX Platinum Services and a board member at Northwest MLS, agreed the market has tempered somewhat. "We've had a 2.45% increase in active listings, a nearly 3% increase in pending sales, and almost a 6% increase in closed sales compared to a year ago." Also, he noted, "We have seen an increase in contingent sales."
Commenting on the supply of homes in Kitsap County, Leach said builders and developers are scrambling to bring on new inventory in all sectors. He described the current inventory, with only 0.57 months of supply, as "drastically low and fueling the increase in median prices." NWMLS figures show prices are up 13.9%. Even so, Leach described Kitsap County as "still a great value and a magnet for surrounding communities with loads of infrastructure improvements and companies moving into the area." MLS figures show the median price in Kitsap County, at $500,000, is about two-thirds of the median price in King County ($740,000).
Looking at other areas, James Young, director of the Washington Center for Real Estate Research at the University of Washington, believes "the normal seasonal effects have taken hold," but pointed to Skagit and Whatcom counties, and other areas along the I-5 corridor as areas where the "main price action" is still occurring.
"The return to these suburban areas seems to continue unabated as first-time buyers seek value and those seeking a more relaxed lifestyle are taking advantage of low-interest rates," said Young. He singled out Skagit and Whatcom counties for their large price increases, at 21.2% and 26.5%, respectively. "This may be in part due to the border reopening and possible pent-up demand from Canadian buyers."
Area-wide, the November numbers were "pretty much what was expected with the market starting to slow as we move into the winter," stated Matthew Gardner, chief economist at Windermere Real Estate.
Gardner commented on recent adjustments in Federal Housing Finance Agency (FHFA) limits for conforming loans (mortgages backed by Fannie Mae or Freddie Mac), which included a record 18% jump in most markets, but also an increase from $776,250 to $891,250 in the higher-cost tri-county area encompassing King, Pierce, and Snohomish counties. "I anticipate this will be a further boost to more expensive markets."
Looking ahead to 2022, Gardner expects the pace of appreciation "to slow significantly" from levels seen this year. "In fact, I predict single-family prices will increase by around 8% in King and Snohomish counties, and by almost 11% in Pierce County. Although still well above the long-term averages, affordability issues and modestly rising interest rates will take some of the steam out of the market in 2022," he added.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/596122517">NWMLS August 2021 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2021-12-07T12:09:00-07:002022-03-07T13:58:46-07:00Matthew Lahtitag:pnwr.com,2012-09-20:1799Understanding Real Estate Offers: What You Need to Know Before Accepting or RejectingAt Pacific Northwest Realty Group, we understand how overwhelming it can be to receive a real estate offer, whether you're a buyer or seller. It's a complex process that requires attention to detail, research, and careful consideration before making any decisions. That's why we've put together this comprehensive guide to help you understand the crucial components of an offer and what to consider before accepting or rejecting it.
The Offer: What is it?
An offer is a legal document outlining the terms and conditions under which a buyer is willing to purchase a property. It's typically presented to the seller by the buyer's real estate agent, and it includes details such as the purchase price, financing terms, contingencies, and closing date.
The Components of an Offer
Let's take a closer look at some of the most critical components of an offer:
Purchase Price: The purchase price is the amount that the buyer is willing to pay for the property. It's essential to note that the purchase price isn't the only factor to consider when evaluating an offer. Other elements can affect the overall value of the deal.
Financing Terms: The financing terms outline how the buyer plans to pay for the property. This can include the type of loan, interest rate, down payment, and other relevant details.
Contingencies: Contingencies are conditions that must be met before the sale can proceed. For example, a buyer may include a contingency that the sale is contingent upon a satisfactory home inspection.
Closing Date: The closing date is the day when the sale is finalized, and ownership of the property is transferred from the seller to the buyer.
Factors to Consider Before Accepting or Rejecting an Offer
Purchase Price vs. Value: While the purchase price is a crucial factor, it's essential to consider the overall value of the offer. This includes the financing terms, contingencies, and closing date. It's also important to compare the offer to other similar properties in the area.
Contingencies: Contingencies can provide protections for the buyer, but they can also be a source of uncertainty and delay. It's crucial to evaluate the contingencies and consider how they might affect the sale.
Closing Date: The closing date can affect both the buyer and seller. If the buyer needs to move in quickly, they may be willing to pay a higher price or provide more favorable terms. The seller may also have their own timing considerations to take into account.
Financing Terms: The financing terms can have a significant impact on the value of the offer. For example, a buyer with a pre-approved mortgage may be more attractive than a buyer without financing in place.
Conclusion
In conclusion, evaluating a real estate offer can be a complex process that requires careful consideration of many different factors. At [Company Name], we recommend working closely with a trusted real estate agent to help you navigate the process and make informed decisions. With this guide, we hope that you have a better understanding of what to consider before accepting or rejecting an offer.
2021-12-04T13:00:00-07:002023-03-26T16:53:42-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6353Buyer hesitancy sidelines some while others compete for scarce housing inventoryKIRKLAND, Washington (November 4, 2021) – Northwest Multiple Listing Service brokers are detecting indecisiveness by some buyers who are getting mixed “work from home” messages from their employers. The hesitancy, coupled with cooler, wetter weather and increases in mortgage rates were likely factors in slower listing and sales activity during October.
Northwest MLS brokers reported 10,620 pending sales last month, a drop of 3.8% from a year ago and a decline of 6.2% from September. Pending sales volume fell in 13 of the 26 counties in the MLS report, but tight inventory could be hampering the ability of buyers to find their dream home.
The latest report shows there were 9,983 closed sales during October. That was 823 fewer completed transactions than a year ago (down 7.6%) and 306 fewer than September (down about 3%).
John Deely, executive vice president of operations at Coldwell Banker Bain, suggested the cooler activity may be the result of several factors but also expressed some optimism. “While the overall slowdown in the market is seasonal and can be attributed to people being priced out of the market, as well as a slight uptick in interest rates, supply chain issues experienced with construction materials late this summer are beginning to normalize.”
Deely, a member of the Northwest MLS board of directors, said the cooling might also be impacted by employees who are hesitant to buy as they are getting mixed “work from home” messages from some of our region’s top employers. “There are questions about how much house they will need for a home office or whether they will be working from a centralized location.” While changing policies are creating indecisiveness for some buyers, Deely said others are pursuing secondary home markets, choosing the quality of life over the need to be near an urban core – “betting that the ‘work from home’ option is here to stay.”
House hunters were able to select from 9,219 new listings MLS added to inventory last month. That was 1,209 fewer than the same month a year ago for a drop of 11.6%. Compared to September, new listing activity shrunk by nearly 19%.
At month-end, there were 6,588 active listings in inventory, down 23.6% compared to a year ago, and the smallest selection since June, but the selection improved by double digits in eleven counties.
Measured by months of supply, there were less than three weeks of supply area-wide (0.66). Eleven counties, including eight in the Puget Sound region, had less than one a month of supply.
Fourteen counties reported more than a month of supply, still well below the industry’s “balanced market” indicator of four-to-six months. “Inventory is still very tight,” said James Young, director of the Washington Center for Real Estate Research at the University of Washington. “Outer counties tended to record slightly more inventory.” Only four counties had more than two months of supply: San Juan (2.14), Okanogan (2.61), Adams (3.11), and Ferry (5.4).
Even though inventory is scarce in many areas, brokers reported solid activity.
“As the weather cools, the housing market intensity heats up for each new listing,” according to J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Buyers want to lock in a great interest rate.” He said the intensity of activity in the Puget Sound area “is either approaching or already at spring 2021 levels, depending on the local area,” adding buyers will face constrained inventory until March 2022.
“The listing inventory in Kitsap County continues to stay low (0.72 months of supply) which leads to steady open house traffic and multiple offers on correctly priced new listings,” stated Frank Wilson, Kitsap regional manager and branch managing broker at John L. Scott Real Estate.
“We are approaching our seasonal low in inventory,” said Wilson. “Each year, as the year closes out, potential home sellers wait until the new year to put their homes on the market. In reality, a home listed now will have higher viewership since the buyer pool has not gone down. With the pace of this market, a correctly priced home offered now would probably be off the market by Thanksgiving, allowing the seller to have a quiet holiday.”
Wilson expressed concern about the “erosion of affordable housing” in Kitsap County. As prices continue to rise and with interest rates also “shifting into an uphill mode, the affordability index is headed downhill,” he believes, adding, “Some buyers are not buying now because they think there will be a price collapse in our future, but the nagging question is what would cause one?”
NWMLS director Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, also commented on the tight market, “Kitsap County continues to have restricted inventory and a multitude of buyers outstripping supply.” Noting that the county’s supply is slightly higher than most surrounding counties, he suggested an anomaly is taking place. “Many resale homes have adjusted asking prices downward while new construction prices continue to rise. We are seeing a tremendous influx of builder interest.”
Leach also noted some homes being added to inventory have not been in the marketplace for 10 to 40+ years as post-Vietnam War-era workers retire and look to resize their housing. Investors are also active, according to Leach. “They are contacting everyone who owns a home or land in Kitsap and Mason counties offering cash and a quick close (and intending to convert some properties into rentals) because they know the value of this market.” Consequently, he said buyers entering the market must be prepared with all their finances, pre-approvals, and supporting documents available in order to compete.
Would-be buyers will find prices for single-family homes and condos are 15% higher than a year ago, with most counties reporting double-digit gains. Area-wide, the price for last month’s closed sales was $575,000, which was $75,000 higher than twelve months ago. For single-family homes (excluding condos), prices rose 16.3% YOY, rising from $515,000 to $599,000. Condo prices were up about 11.3%, increasing from $395,000 to $439,475.
King County was the exception among the metro areas with double-digit price gains. Prices were up about 9.5% from twelve months ago, increasing from $685,000 to $750,000. Within the county, prices in Seattle registered the smallest gain at 5.3% while Vashon prices jumped more than 33% compared to a year ago. Homes that sold in the Southeast part of the county surged 19.7%, followed by the Southwest segment at 17.7%. On the Eastside, where the median price was more than $1.1 million, year-over-year prices were up 17.3%.
Commenting on King County’s comparatively small price gains, Young questioned when demand would return to cities. “The trends provide a mixed message as to whether demand will return to the cities as quickly as anticipated. With millennials looking for value and increased opportunities to purchase a home in the suburbs, it could be an interesting few months as to whether the lifestyle of the city and employers can change the balance of demand back to the city.”
Buyers may find some relief with condominiums, although the selection is limited. “From an affordability standpoint, many buyers have been forced into the condo market, but the inventory is severely depleted,” stated Deely.
Active listings of condos are down about 55% from a year ago, shrinking from 2,079 properties to 941. About seven of every 10 condos are located in King County. The median price on condos that sold last month system-wide was $439,475. That’s up 11.3% from the year-ago figure of $395,000. In King County, prices rose modestly, from $459,970 to $475,000 (up about 3.3%).
Leach noted condo inventory was comparable to both a year ago and a month ago in Kitsap County, while prices spiked 22% from a year ago.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/596122517">NWMLS August 2021 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2021-11-19T13:32:00-07:002021-11-19T13:42:01-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6349Northwest MLS brokers report gains in new listings, closed sales, prices versus year agoKIRKLAND, Washington (October 6, 2021) – September’s housing market remained “very active” to “frenzied” around Washington state with brokers reporting year-over-year (YOY) gains in new listings, closed sales, and prices. Brokers with Northwest Multiple Listing Service also detected growing stability in the condominium market.
“Historically low-interest rates continue to drive the real estate market,” remarked Dean Rebhuhn, owner at Village Homes and Properties. He also cited pent-up buyer demand, job and lifestyle changes, and inventory shortages as factors contributing to a “very active market.”
A new report from Northwest MLS shows brokers added slightly more new listings last month (11,373) than a year ago (11,210). That volume, which includes single-family homes and condominiums, nearly matched the total for August (11,437), and barely outgained the number of pending sales (11,318) for the 26 counties in the report.
Compared to the same month a year ago, pending sales slipped about 6% (11,318 versus 12,053). Despite that drop, J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noted the number of mutually accepted offers in the Puget Sound region (King, Kitsap, Pierce and Snohomish counties) made last month the MLS’ second-best September, based on records going back to 2003. Last year’s 4-county total of 8,606 pending sales is the highest volume for that timeframe spanning nearly two decades.
“The housing market intensity for each new listing will continue its upward trajectory as the first of the year approaches,” Scott proclaimed.
Low inventory continues to pose challenges for buyers. At month end, Northwest MLS members reported 7,757 total active listings system-wide. That marked a slight improvement from August when there were 7,425 active listings, but it was a drop of nearly 14.8% from twelve months ago.
As of the end of September, there was about three weeks of supply (0.75 months), slightly better than August (0.70 months), but less than the same month a year ago (0.89 months). There has not been more than one month of supply since July 2020 when it reached 1.04 months.
Figures for single-family homes only (excluding condominiums) were more encouraging. Inventory declined only about 4% from a year ago. Seventeen counties reported YOY gains, with two others unchanged from year-ago levels.
King County, one of the exceptions, had the sharpest decline in inventory for single-family homes. The selection of single-family homes plummeted from the year-ago volume of 2,420 to 1,634 (down 32.5%).
For all counties in the report, the months of supply for the single-family component was the same as the figure for single-family homes and condos combined (0.75, or about three weeks).
“While one could expect months of supply to increase around the end of the summer, shortage of supply still remains a significant issue, indicating demand still exists in many submarkets,” observed James Young, director of the Washington Center for Real Estate Research at the University of Washington.
Young contrasted strong price increases in nearly every “outer suburban” county along I-5 plus Kittitas County with prices in King County. He noted nearly all of the outlying counties posted YOY increases at or above 15%, while King County experienced only a single digit gain of 6.7%. Prices in Kittitas County, where destinations like Suncadia and Ellensburg are within a two-hour drive to Seattle, surged more than 26% from a year ago.
“With decreases in active listings in King and Snohomish counties, price pressure may increase in urban areas of the region as people return to the city for work,” suggested Young.
One option for those wanting to live near urban job centers in anticipation of workplace reopenings maybe condos.
“I’m happy to report that the Seattle-area condominium market, which was negatively impacted by COVID-19, has stabilized, reporting consistent increases in both sales and prices,” noted Matthew Gardner, chief economist at Windermere Real Estate.
Condo inventory, however, is sparse, with the selection at about half the year-ago levels (1,078 active listings at month end versus the year-ago supply of 2,129 listings).
In King County, Northwest MLS figures for September show a 20% jump in the number of condos that closed during September compared to a year ago; within the Seattle map areas, closed sales were up more than 34%. (King County currently accounts for about 70% of condo inventory and 60% of condo closed sales.) Condo prices rose more than 8% countywide, with the Southwest and Southeast and North King areas of the county registering the strongest gains at more than 13.5% in all three sub-areas.
Condo prices in nearby counties outgained the rate in King County, as did prices system-wide, which rose 15.7% from a year ago. Kitsap prices spiked 28.5%, Snohomish prices were up 17.8% and Pierce County condo prices jumped about 16.7%.
In addition to noting improvements in the condo sector, Gardner also stated, “We continue to see a migration of buyers to suburban markets which has resulted in significant year-over-year price growth in areas such as Shoreline, Lake Sammamish, Auburn, Skyway, Woodinville, and Burien. It’s likely that buyers are drawn to these areas because housing is more affordable than in the urban neighborhoods closer to Seattle and Bellevue.”
John Deely, executive vice president of operations for Coldwell Banker Bain, also commented on condo activity, notably the 20% jump in King County sales. “This further reflects the affordability crisis in our region as residential buyers are driven to the condo market.” According to NWMLS data, a single-family home that sold in King County last month had a median selling price of $825,600, while for condos it was $466,501.
“One positive note for buyers is that prices are beginning to level out and the annual trend of the market slowing down as we move into the holidays remains,” Deely commented. “Buyers should consider staying in the market, if they can, as homeowners who are selling in the last quarter of the year tend to be highly motivated. Buyers will find less competition this time of year due to inclement weather and holiday travel.”
Deely has detected rising concern among sellers over legislation affecting capital gains rates. “With legislation in the queue on the national front that could cause an increase in capital gains rates, many sellers who have been on the fence about selling are now concerned they could lose profit in their homes to taxes if they wait,” Deely reported, adding, “Of course, it’s proposed legislation and therefore unpredictable, but our clients are asking about it.”
Rebhuhn noted some buyers are backing away from bidding wars, instead choosing to wait for the right property.
Broker Dick Beeson, in Pierce County, described the market as “brutal and unforgiving for buyers and sellers,” with “dreams being crushed on all sides. Buyers are swallowing hard and paying prices they curse, while sellers are having to move somewhere they hadn’t originally planned – be that good or bad.”
Beeson, the managing broker at RE/MAX Northwest in Tacoma-Gig Harbor, said that while inventory in some NWMLS counties appears to be improving, there are “still slim pickings,” which portends escalating prices and fierce competition among buyers.
Among Puget Sound area counties Beeson mentioned as having year-over-year gains in inventory were Kitsap, Pierce and Thurston. Even so, he emphasized, these have not yet translated into reduced prices for buyers. Improving inventory should eventually reduce the rate of future price increases, he suggested. County
Current inventory (SFH+Condos)
YOY change in inventory (active listings)
YOY change in median sales price
Month’s supply
Kitsap
363
7.7%
18.4%
0.69
Pierce
1,112
11.1%
16.6%
0.67
Thurston
352
39.7%
20%
0.56
All 26 counties
7,757
-14.75%
14%
0.75
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/596122517">NWMLS August 2021 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2021-10-08T12:01:00-07:002021-11-19T13:39:21-07:00Matthew Lahtitag:pnwr.com,2012-09-20:6061Northwest MLS brokers say August housing activity follows patterns of seasonal slowingKIRKLAND, Washington (September 7, 2021) – August typically brings a dip in housing activity and this year was no different, according to representatives from Northwest Multiple Listing Service when commenting on newly-released statistics. Figures comparing July to August show month-to-month drops in new listings, total inventory, pending sales, close sales, and median prices.
“August showed a more traditional seasonal pattern with decreased activity as families took end-of-summer vacations and made back-to-school preparations,” remarked Frank Wilson, Kitsap regional manager and branch managing broker at John L. Scott Real Estate.
NWMLS statistics show the volume of new listings added during August, including single-family homes and condominiums, declined from both July (down 11.5%) and twelve months ago (down 4.2%). Total inventory for the 26 counties in the report also fell, shrinking about 6.6% from July and nearly 22.6% from a year ago. At month-end, there were 7,425 active listings, down from the year-ago total of 9,591.
“We saw a dip in open house traffic overall, although some new listings were overwhelmed with traffic, depending on the area and the price point,” reported Wilson. “We are seeing homes stay on the market slightly longer and more instances of sellers overpricing their properties.”
John Deely, executive vice president of operations at Coldwell Banker Bain, agreed. “The continued lack of inventory indicates properties will move very quickly if priced reasonably. Even in our current hot market, pricing a property correctly has never been more important,” he emphasized.
Prices showed signs of moderating during August. The median price on the 10,571 sales that closed last month was $579,000, a drop of $10,000 from July. Prices did rise compared to 12 months ago, climbing from $490,000 for an increase of about 18.2%. That year-over-year (YOY) percentage change was the smallest since February when there was a bump-up of about 15%.
Matthew Gardner, the chief economist at Windermere Real Estate, suggested price cooling is insight. He said he looks at listing prices as a leading indicator of where things are headed. “In King County, median list prices dropped from $740,000 in July to $729,000 in August. That would explain why the median sales price also fell modestly month-over-month. I believe this is because we are hitting a price ceiling and that the rapid pace of home price appreciation will continue to cool as we move through the rest of the year.”
Northwest MLS figures show the median list price system-wide for single-family homes and condos combined, was unchanged, at $605,000, from July to August. The asking price fell from July to August in about half the counties in the report.
“Purchasers are continuing to find mortgage interest rates below 3%, providing increased buying power,” stated Dean Rebhuhn, owner at Village Homes and Properties. He believes the historic low-interest rates coupled with lifestyle changes continue to be market drivers and factors in keeping inventory at historically low levels.
Northwest MLS figures indicate there were around three weeks of inventory (0.70 months) at the end of August. Clark, King, Kitsap, Lewis, Mason, Pierce, Snohomish, and Thurston counties had only about three weeks of inventory, with Snohomish reporting the smallest supply (0.49 months), about two weeks.
Commenting on inventory, James Young, director of the Washington Center for Real Estate Research at the University of Washington, said gains in total active inventory in several counties were mostly consistent with patterns observed all year, notably in the suburbs, the seaside, and the Olympic Peninsula. “It is not just a return to the suburbs, it is a continued return to the country as people continue to work from home.”
Several counties experienced year-over-year increases in inventory, including Chelan, Douglas, Ferry, Grays Harbor, Island, Kittitas, Lewis, Mason, Okanogan, and Thurston.
In about half the counties, the number of new listings outgained the number of pending sales. For all counties combined, last month’s total number pending sales (12,238) surpassed the number of new listings (11,437), a margin of 801 units.
“The extreme real estate market in the Puget Sound area continued during August, with strong buyer demand due to historically low-interest rates and a backlog of buyers still looking for a home,” remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.
Scott expects the “housing market intensity for each new listing will start tightening back up again in the Puget Sound region as we start heading toward the first of the year.”
Deely said condos may be showing some signs of pent-up demand, noting closed sales were up more than 10% from a year ago, with King County sales jumping 19.9%. “Not only is there pent-up demand as some choose to move back to the city center a year after civil unrest and a pandemic, but residential buyers are finding themselves priced out of the market and are moving toward condo ownership.”
While Deely noted the YOY uptick in condo sales, he said some buyers are still looking to move further away from the city and employment centers. “Work from home opportunities, as well as the thought/hope that some employers will allow flexible work schedules post-COVID are driving factors,” he said, adding, “Other factors are lower taxes and overall costs in suburban areas. People are buying the maximum house they can and factoring in the variable cost of a commute. Many out-of-state buyers are not very concerned about the distance from workplaces as they are accustomed to long commutes.”
In Kitsap County, the market “continues to be very hot,” with inventory remaining low, according to Frank Leach, broker/owner at RE/MAX Platinum Services. “Don’t be fooled,” he added, “Prices and interest rates are not going to stay stable for long.” He also noted rental rates continue to climb.
Leach expects an influx of people will keep moving to the Kitsap Peninsula area, including 3,000 sailors and their families who arrived in late July when the aircraft carrier USS Theodore Roosevelt shifted its homeport from San Diego to Bremerton for a planned 16-month retrofit.
Both Leach and Wilson expect home values in Kitsap County, which rose 14.7% from a year ago, will keep increasing even as builders are trying to meet demand. “Although there are affordable home options being planned for the future, those are several years away,” according to Wilson. “Affordable housing has taken a real hit over the past six or seven years with the average price far exceeding what the average income in Kitsap can afford.”
At the other end of the price spectrum, economist Gardner noted luxury home sales continue to exceed expectations, with no signs of slowing.
According to Northwest MLS statistics, nearly 15% of this year’s sales (through August) commanded prices of $1 million or more. The year-to-date total of 10,237 sales that have fetched $1 million-plus eclipses the totals for all of 2020 when there were 8,898 such sales, as well as the entire year of 2019 when members notched a total of 6,711 sales over a million dollars.
Gardner’s analysis found strong activity for luxury homes in Snohomish and Pierce counties, prompting him to say, “This tells me that there’s a migration of buyers who are choosing to move away from King County and into adjacent areas where their money goes further.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/596122517">NWMLS August 2021 Real Estate Market Report</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2021-09-07T13:59:00-07:002021-09-07T17:07:41-07:00Matthew Lahtitag:pnwr.com,2012-09-20:5956Homebuyers are finding some relief, but Northwest MLS brokers say it is temporaryKIRKLAND, Washington (August 5, 2021) – Competition for homes eased slightly in July across much of Washington state, but brokers from Northwest Multiple Listing Service expect the respite to be short-lived, with inventory still tight and prices still climbing.
“Although the local market is intense, buyers can find some relief because there aren’t as many offers to compete with compared to earlier this year,” observed J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. He noted the number of listings brokers added last month outgained the number of homes going under contract by a small margin in most areas in the report.
Northwest MLS brokers added 12,916 new listings to the database during July. They reported 11,567 pending sales (mutually accepted offers) areawide, which covers 26 counties. At month-end, there were 7,948 total listings offered for sale, down 22.5% from the year-ago total of 10,259. That was the highest level since October when inventory totaled 8,623 properties, including single-family homes and condominiums.
“August historically is the last month of the year with elevated levels of new listings before they slowly taper down in the fall and decline more substantially over the winter,” Scott said, reminding buyers they will find a better selection now than in the coming months.
John Deely, a member of the Northwest MLS board of directors, commented, “There is some ‘normalization’ in our market as it relates to the historical summer slowdown.” Deely suggested the slowdown is occurring earlier this year, noting “We’ve also seen the warm weather in our region begin earlier.” He attributes some of the slowdowns in real estate activity to the lifting of pandemic restrictions on June 30 when the state reopened under its “Washington Ready” plan. “People are eager to enjoy the nice weather and take vacations,” observed Deely, the executive vice president of operations for Coldwell Banker Bain.
Another industry veteran also detected some pullback of activity.
“Despite the extreme shortage of inventory and robust sales activity, there seems to be a bit of a leveling off from the market frenzy,” said Gary O’Leyar, broker-owner at Berkshire Hathaway HomeServices Signature Properties. “In my opinion, this is due to a typical mid-summer season market combined with some buyer fatigue.”
NWMLS statistics show there were fewer pending sales last month (11,567), than during both June (12,328) and May (11,969). July’s volume was down about 8.8% from the year-ago total of 12,682 pending sales.
“While dangerous to compare 2020 lockdown figures to this year, it is interesting to see that new listings volume is starting to rise above 2019 levels,” observed James Young, director of the Washington Center for Real Estate Research at the University of Washington. In July, MLS figures show member-brokers have added 1,723 more new listings of single-family homes and condos than during July 2019 (12,916 versus 11,193). Year to date, brokers have added 1,438 more new listings this year compared to 2019.
Notably, 14 of the 26 counties in the Northwest MLS report showed year-over-year (YOY) gains in new listings, with half of them reporting double-digit increases: Clallam, Clark, Cowlitz, Ferry, Grays Harbor, Kitsap, and Thurston. Three of the four counties in the Puget Sound region had YOY improvement, led by Kitsap County with a jump of 29.3%. The volume of new listings in King County dropped about 5.4% from a year ago. System-wide there was a 3.2% gain in new listings versus twelve months ago.
Prices continue to climb by double digits in all but a few counties. Across all areas, prices for closed sales of single-family homes and condominiums (combined) jumped 21.4% during July compared to a year ago, rising from $484,995 to $589,000. Last month’s median price overall was unchanged from June.
“My advice to buyers would be to take advantage of this time before Labor Day and the fall market,” stated O’Leyar. His advice to sellers would be: “Don’t get overly hyped with anecdotal information about the real estate market. Overpricing a listing in this market is still a big mistake.”
Young checked statistics from two years ago, noting prices in suburban counties and along much of the I-5 corridor have increased sharply. “Prices in Lewis County are up 54.2% from the July 2019 level, Snohomish County is up 40.6%, and Island County is up 44.3%. Skagit and Whatcom counties underperformed relative to these areas with median price increases of 36.4% and 38.4% respectively.” NWMLS figures show four other counties have had price jumps of at least 40% -- Ferry, Grant, Grays Harbor, and Okanogan. Jefferson County had the smallest increase since 2019, with the median price increasing just over 24%, followed by Clark County, at 24.6%, and King County at 26.2%.
“The search for value in the suburbs with sharp price increases suggest households are making their housing preferences known. They want to own rather than rent,” Young concluded. “Unfortunately,” he added,” the lack of new construction for owner-occupiers over the past few years in the suburbs means first-time buyers and marginalized communities are finding it more difficult than ever to get a foot on the housing ownership ladder.”
“With a lack of new construction coming on the market in suburban areas after years of underbuilding, increasing demand still has few places to go,” suggested Young. “With interest rates staying at historically low levels and less than a one-month supply throughout the region, the perfect storm for rising house prices will continue, but perhaps not as ferociously as before.”
Dean Rebhuhn, owner at Village Homes and Properties said would-be purchasers continue to be frustrated by the sparse supply of homes, although he noted low-interest rates are providing increased purchasing power. “The demand for homeownership and low-interest rates are fueling a very busy real estate market with buyers continuing to seek opportunities that provide more space both inside and out.”
“Clearly the lack of inventory of homes for sale remains the primary reasons for price increases and multiple offer situations, giving nightmares to would-be buyers,” remarked Dick Beeson, managing broker at RE/MAX Northwest Brokers.
Housing affordability “has left the building,” according to Beeson, citing building supply chain slowdowns and a scarcity of skilled workers for homebuilding as culprits.
Beeson, whose office is in Pierce County, estimates about 75% of all sold properties during the past six months in that county as well as in Kitsap and Thurston counties sold in a week or less. “It can’t get much faster. All three counties have barely two weeks of inventory,” he commented.
Northwest MLS figures show there are 0.73 months of inventory system-wide, with only 12 of the 26 counties in the report having more than one month of supply.
“As more and more millennials enter the market, the crush of demand will grow even stronger. Can somebody please move?” asked Beeson, in hopes of uncovering more listings.
Coldwell Banker Bain CEO Mike Grady referred to recent housing activity in the region as “our 14th consecutive month of this hyperreal estate market.” He agreed with Deely’s explanations for slowing activity, saying recent feedback from brokers confirms buyers and sellers are ready for vacations and traveling after spending so much time at home.
Commenting on the slight change in the month’s supply of inventory, Grady said the overall market hasn’t deviated much. He noted the time it would take to sell all homes in inventory (month’s supply) only increased about three days since June and still remains well under three weeks in most markets. “That’s a long, long way from a ‘balanced’ market of four-to-six months of inventory.”
Grady expects “more of the same” for the rest of the summer and beyond. “We don’t appear to have the forces in play to change. Low inventory, high buyer demand, low-interest rates, and thousands of job openings are continuing unabated. I remain bullish on the real estate market now and well into 2022.”
Deely said one plus for buyers is some of the condo numbers. The MLS figures show the volume of new listings (1,702) outgained pending sales (1,549), although total active listings remained below year-ago levels (down 35% areawide).
Condo prices rose more modestly, at 12.6% than the rate for single-family homes (22%). In King County, which accounted for nearly six of every 10 condo sales during July, the year-over-year increase was just under 7%. The median-priced condo in King County sold for $460,000, while overall the median sale price was $428,000.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/582577279">NWMLS July 2021 Real Estate Market Reports</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2021-08-10T16:50:00-07:002021-08-10T16:59:11-07:00Matthew Lahtitag:pnwr.com,2012-09-20:5866Market offers hope for homebuyers, but Northwest MLS brokers say it may be temporaryKIRKLAND, Washington (July 7, 2021) – Homebuyers may find some good news in the latest report from Northwest Multiple Listing Service (NWMLS). The number of active listings at the end of June, 6,358, reached the highest level since November when buyers could choose from 6,505 properties. The volume of new listings added last month was the highest number in 17 months (13,111 last month versus 14,689 at the end of November 2019).
“Homebuyers will be happy to hear that between May and June the number of listings in King, Pierce, and Snohomish counties rose, giving them more homes to choose from and possibly easing the pressure just a little,” remarked Matthew Gardner, chief economist at Windermere Real Estate.
For the tri-county area, total active listings of single-family homes and condominiums increased 14.5% from May. System-wide, the report covering all 26 counties served by Northwest MLS shows month-to-month inventory improved 14.9%.
“Buyers need some relief, so I hope this trend continues,” said Gardner.
Broker Dean Rebhuhn, the owner at Village Homes and Properties, agreed the slight increase in new listings is good news for buyers but tempered his optimism. “Low inventory and high demand coupled with low-interest rates continue to drive up the market.” He also noted Kittitas County “is no exception to brisk sales. Many homes in that county are selling within one or two weeks.”
NWMLS director Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, described Kitsap County as another “heated market” but said brokers there are growing inventory very slowly, resulting in more selection for buyers. Brokers added 621 new listings to that county’s inventory, improving May’s volume by more than 13%. That number also marked the first time since May 2019 that the number of new listings in Kitsap County topped 600.
Other industry analysts suggested the uptick in inventory might be short-lived, citing vigorous activity as Washington state lifts several strict coronavirus restrictions.
“We continue on a trajectory that will keep the Puget Sound region at the top of national lists for one of the hottest housing markets,” stated John Deely, executive vice president of operations for Coldwell Banker Bain. “Inventory on hand remains at two-to-three weeks in the larger counties,” he noted.
The latest report from Northwest MLS shows a year-over-year (YOY) drop in active listings of more than 34%, with only about two weeks (0.58 months) of supply available areawide. Last month marked the first time since July 2020 that the year-over-year decline fell below 40%.
Only 10 of the 26 counties in the MLS report have more than one month of supply. Of these, only one (Ferry) has more than two months of supply. Snohomish County’s inventory declined more than 44% from a year ago, leaving it with only about 10 days of inventory (0.35 months of supply), the lowest of all the counties served by Northwest MLS.
“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,” explained Deely.
Pending sales rose about 3.5% compared with a year ago (from 11,916 to 12,328) but fell slightly from May when mutually accepted offers outgained the number of listings added during the month.
“The local real estate market is virtually sold out in the more affordable and mid-price ranges, even into the luxury market in some areas,” reported J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “This places extra focus on each new resale listing as it comes onto the market.”
An analysis of last month’s statistics by price range illustrates Scott’s point. Fewer than 23% of June’s listings had asking prices under $400,000. About a third of the inventory was listed at $800,000 or above.
James Young, the director of the Washington Center for Real Estate Research at the University of Washington, said the decline in active listings volume suggests homes are selling and closing very quickly once listed. He noted that while listing levels for June were higher than two years ago, pending and closed sales are much higher. “This indicates that well-priced properties are closing very quickly.”
Lennox Scott concurred. “Many homes are going under contract within days due to the intense buyer demand.” He anticipates two more months of “elevated new resale listings” before the selection starts decreasing. “We expect the extremely high intensity for each listing will continue in most price ranges locally into the spring of 2022 due to historically low-interest rates creating a large backlog of buyers looking to purchase a home.”
Deely said affordability, especially for first-time homebuyers, continues to be a concern. “Given indications from tech companies like Amazon and Microsoft to lease large office spaces and hire thousands of employees in our region, drawing people from higher-priced markets like Silicon Valley with lots of money to spend, we don’t see much change in this scenario for buyers in the short term.”
Brokers reported 10,923 completed transactions during June, a 31.4% increase from twelve months ago, and up 16.5% from May’s total of 9,374. Prices on last month’s sales, which includes single-family homes and condominiums, rose nearly 27% from a year ago, from $465,000 to $589,000.
The single-family segment accounted for about 86% of the sales. The median sales price on those 9,417 transactions was $611,000, which was 27% higher than the year-ago figure of $480,950.
Condo sales jumped a whopping 59% from a year ago, with prices increasing more than 20%. For last month’s 1,506 closed sales, the median price was $440,000; a year ago it was $365,000.
Looking at month-to-month, rather than YOY changes, Gardner noted King and Pierce counties experienced only modest price increases, while prices in Snohomish County rose by “a solid 3.1%. I believe this points to an uptick in buyers who can continue working from home and have made the choice to move from King to Snohomish County where housing is more affordable. The same can be inferred for Kitsap County.”
A comparison of Northwest MLS figures shows the median price on last month’s completed transactions in King County was $779,919, while in Snohomish County it was about $105,000 less ($675,000). In Kitsap County, where the median price was $505,000, the difference is nearly $275,000. Pierce County homes that sold last month had a median price of $507,375.
Commenting on the NWMLS report, Dick Beeson, managing broker at RE/MAX Northwest, Tacoma-Gig Harbor, said it reflects a “slight turn of the wheel. Sellers are still in control, but their expectations need a slight readjustment. Instead of 20 offers, there may only be five or fewer. Maybe even only one.”
When that happens, some sellers balk at selling, thinking they are being undersold, according to Beeson. “Sellers must remember, you can’t underprice a home in this market. You can still overprice a property. The market will find you out and drive the price to the appropriate market value.”
Given the strong, competitive market across all price ranges, Beeson offered a recipe for buyer success. “Scour the new inventory coming on the market daily; write the best offer you can using all the offer strategies you’re equipped to employ, and then decide if the extra cost to win the sale is an acceptable value to you. Close the sale quickly, and don’t whimper!”
Rebhuhn also offered hope for buyers who are prepared to act. “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.”
Builders are also caught in the frenzy. “Builders are racing to bring new communities online and hoping to hit the sweet spot as prices on building materials for new construction begin to fall,” reported Frank Leach. He said new apartment buildings and condos are being approved and built all across Kitsap County to accommodate newly arriving residents. Notably, Leach said an aircraft carrier due to arrive shortly could potentially add 3,500 people to that county’s rental market.
Although pending sales in Kitsap County dipped slightly from a year ago, they were up nearly 12% from May. “The market in Kitsap County is expected to remain very competitive with exposure of only eight days on the market, on average, across all price ranges,” Leach noted.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
<a href="https://vimeo.com/570058401">NWMLS June 2021 Real Estate Market Reports</a> from <a href="https://vimeo.com/nwmls">NWMLS</a> on <a href="https://vimeo.com">Vimeo</a>.2021-07-13T09:59:00-07:002021-07-13T10:08:55-07:00Matthew Lahtitag:pnwr.com,2012-09-20:5856May marked a month of new records for some Northwest MLS market indicators
KIRKLAND, Washington (June 7, 2021) – May was a month of record-setting highs and lows for some key housing market indicators tracked by Northwest Multiple Listing Service.
Northwest MLS director Robb Wasser, branch manager at Windermere Real Estate/East in Bellevue, noted the number of active listings for single family homes dropped from April to May for the first time in at least 20 years. The month-to-month decline was small (only 83 listings), but compared to 12 months ago, May’s inventory plummeted by 4,824 listings (down 46.6%).
Months of inventory of homes and condominiums fell to just over two weeks (0.59 months) system-wide, which encompasses 26 of Washington’s 39 counties. Only March 2021 and December 2020 have been lower when both months ended with only 0.53 months of supply.
Year-over-year price increases measured by percentages appeared to hit a new high with the median price on last month’s 9,374 closed sales soaring 30% from a year ago.
A check of Northwest MLS data shows prices on the 8,011 single family home sales (excluding condos) that closed last month sold for 107.3% of the asking price. In the 4-county Puget Sound region (King, Snohomish, Pierce and Kitsap), the figure was 108.6%, while in King County it was 109.5%.
“Everything is about breaking records this past year with record-breaking housing prices, record-breaking low inventory, and record-breaking consumer savings rates during the pandemic,” remarked Meredith Hansen, owner/designated broker at Keller Williams Greater Seattle. “All this equals a very strong, chaotic market that may not slow down for the next year,” added Hansen, who is also a member of the NWMLS board of directors.
“Last month’s listings came in lower than we would normally see due to the month starting on a Saturday and ending with a holiday weekend,” noted J. Lennox Scott, chairman and CEO at John L. Scott Real Estate. “New resale listings typically go on the market on Wednesday, Thursday, or Friday,” he explained, adding, “In today’s instant-response market, new listings often go pending over the weekend or early the next week.”
Scott expects an elevated number of new resale listings for just three more months before the fall housing market. “This time period will be critical for home buyers looking to secure their home of choice while interest rates are at historically low levels.”
“The summer real estate market is upon us with an increased number of new listings giving homebuyers more selection. Record low-interest rates and job gains continue to drive the market, along with focused lifestyle changes,” reported Dean Rehhuhn, owner at Village Homes and Properties. He also noted rising home prices are prompting buyers to drive farther north, south, and east to find affordable homes.
Brokers added 11,922 new listings of single-family homes and condos during May, slightly fewer than April’s total of 12,043. Compared to a year ago, as brokers, sellers, and buyers were adjusting to pandemic-related restrictions on the real estate industry, the volume of new listings rose 20.8%.
Pending sales edged above the volume of new listings, with brokers reporting 11,969 mutually accepted offers. That number also outgained the year-ago total of 10,389 (a gain of 15.2%), and was the highest number since September when MLS members logged 12,053 pending sales.
High demand kept supply depleted. At month-end, there were 5,533 active listings in the NWMLS database, nearly half the inventory of a year ago when buyers could choose from 10,357 listings.
“The dramatic increase in prices and low inventory just continue in such a way that although we have more inventory coming on the market, it is immediately absorbed because of a demand that simply cannot be met,” said NWMLS director John Deely, executive vice president of operations at Coldwell Bank Bain.
Frank Wilson, Kitsap regional manager and branch managing broker at John L. Scott Real Estate-Poulsbo, said brokers there are seeing increases in new listings, like most counties, and also pent-up demand. However, he noted, “We are also beginning to see isolated instances of homes not selling right away, or homes that only receive one offer. Part of this could be the backlog of buyers is shrinking, or it could be that sellers are just asking too much for their home.”
Kitsap brokers are also experiencing increases in the time it takes to get an appraisal, according to Wilson. “In some cases, appraisers are just not picking up an appraisal unless it comes with a rush fee,” he reported.
Another Kitsap County broker, Frank Leach, owner at RE/MAX Platinum Services in Silverdale, described the market in that county as “extremely active.” MLS figures show there are only 0.62 months of supply (about 19 days) with most homes selling at 108% above the asking price. Closed sales jumped nearly 42% from a year ago. Prices on last month’s closed sales of single-family homes and condos (combined) in Kitsap County increased from $395,600 to $486,944 for a gain of more than 23%.
Leach, a board member at Northwest MLS, said Kitsap County continues to be an affordable alternative to counties to the east. “New construction is booming throughout Kitsap with thousands of single-family and multifamily projects underway. Low-interest rates and easing of COVID-19 restrictions are bringing buyers out to take advantage of the market.”
James Young, director of the Washington Center for Real Estate at the University of Washington, commented on the challenges facing first-time buyers. “Residential month’s supply (excluding condos) has continued to decline with less than two weeks of inventory in King, Snohomish, and Pierce counties, and slightly more than two weeks in the region. These are amazingly low levels of inventory,” he noted.
“Coupled with continued low-interest rates and eased borrowing criteria, rapidly rising prices reflect huge supply imbalances. Given these imbalances, first-time buyers have had almost no chance to take advantage of low-interest rates unless they leave the city. Unfortunately for them, continued supply constraints along the I-5 corridor mean they are increasingly being left out of the market for the whole region. Only a decrease in demand will moderate house price trends,” Young stated.
Industry veteran Mike Grady expects demand will remain strong. “While we’re starting to hear some talk about increasing inflation given a lack of new construction and skilled labor and supply chain shortages, our market is counteracting that,” suggested Grady, the president and CEO at Coldwell Banker Bain. He believes three factors will continue to drive demand for the next six to 12 months: having the main bulk of the millennial generation finally entering their home-buying years; the acceleration of retirement of boomers and their subsequent home downsize or relocation moves; and the relocation of people from all over the world to the Pacific Northwest as part of the Work from Home (WFH) mindset due to the coronavirus lockdown.
Windermere Chief Economist Matthew Gardner commented on the “pronounced impact” COVID-19 had on the urban Seattle condominium market last year as many condo owners decided to sell and relocate away from the downtown area. “By summer, inventory had jumped to levels we had not seen since the bursting of the housing bubble in 2008, resulting in more supply than demand and lower listing prices.”
Continuing, Gardner said, “The good news is the Seattle condo market has settled back down with inventory dropping and sales rising. Because of the shift in this market, there was a price reset, but this appears to be luring buyers who previously thought they could not afford to buy downtown, leading to more balance between supply and demand.”
The NWMLS report for May shows condo inventory is down nearly 36% from a year ago as pending sales (1,613) outgained new listings (1,607). At month-end, the condo selection totaled 1,093 listings, with about three weeks of supply (0.80). Young noted the condo supply in King County is dwindling. There was about a month’s supply at the end of May, down from 1.67 (about 50 days) in January.
Pending sales of condos in King County surged 62.4% from a year ago. In Seattle, last month’s pending sales shot up 83.7%, while area-wide, they rose 37.2%.
Closed sales of condos system-wide more than doubled from a year ago, from 658 to 1,363 (up more than 107%). Prices on last month’s sales increased 21.7% from last year, with the largest gains outside of King County. Within King County, which accounted for 799 of the total sales volume (58.6%), year-over-year prices rose 9.3%, from $420,000 to $459,000.
Commenting on the uptick of condo activity, Deely noted there is less than a month’s supply (0.80). “As many of our large companies announce their intentions for a hybrid work-from-home/in-office approach, it appears concerns about commutes are starting to drive buyers into the urban condo markets once again.”
Scott is confident the robust activity will continue. “We are in a prime position to see a good number of resale listings and a proportional number of homes going under contract. 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.”
Hansen agreed, reminding buyers “they need to be ready to compete in this market by reviewing successful offer strategies with their broker and lender.”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2021-06-09T12:09:00-07:002021-07-08T12:20:22-07:00Matthew Lahtitag:pnwr.com,2012-09-20:5640Brokers detect good news for home buyers, citing gains in listings and moderating prices
KIRKLAND, Washington (May 5, 2021) – Finally, some good news for homebuyers! Sizeable increases in new listings compared to a year ago and reports of moderating prices “might mean we are seeing some relief for buyers,” suggested John Deely, a board member at Northwest Multiple Listing Service.
In commenting on the latest statistics from Northwest MLS summarizing April activity, Deely said the market remains hot while emphasizing active listing numbers do not always reflect the actual overall activity. “With a market like ours, and the velocity of new listings moving to pending status, active listing data tend to get more attention,” stated Deely, the vice president of operations at Coldwell Banker Bain.
Northwest MLS figures, which cover 26 counties, illustrate that point. At month-end, April’s active listings stood at 5,616, yet during the month, member-brokers added 12,043 new listings of homes and condos. There was a jump of more than 57% from the same month a year ago when the pandemic shutdown began. Compared to March, the volume of new listings rose 14%, and even compared to two years ago (April 2019), new listings were up about 3%.
April’s month-end inventory of 5,616 listings was a year-over-year (YOY) drop of 45%; a year ago, there were 10,282 active listings in the MLS database.
Pending sales continue to surge, keeping inventory depleted. Brokers reported 10,583 pending sales during April, up nearly 47% from a year ago when they logged 7,207 mutually accepted offers. Last month’s pending sales dipped slightly (2.58%) from March.
Two other industry experts, J. Lennox Scott and Matthew Gardner, also commented on the significant gains in new listings.
“At long last, May is here. Historically, we see a nice uptick in new listings every May. This increased availability and selection will be present throughout the summer,” suggested Scott, the chairman and CEO of John L. Scott Real Estate. He tempered his prediction by noting there is a large backlog of prospective home buyers, a situation he says will “keep the market in a state of ‘instant response’ for each new resale listing.”
Matthew Gardner, the chief economist at Windermere Real Estate, noted 16 of the 26 counties in the report had at least a 20% increase in active listings at the end of April compared to March, saying “There is finally some good news for buyers!” NWMLS figures show active listings increased by 1,463 properties (up 35.2%). He also pointed out the rise in inventory had a softening effect on the average listing price. He calculated a drop of 5.1% between March and April. “It’s too early to suggest this trend will continue, but it’s encouraging to see and hopefully the beginning of a shift back towards a more balanced market.”
Even with some improvement in listings, the MLS report shows only nine counties have more than one month’s supply of inventory. Areawide, there are only 0.64 months of inventory, with even less supply (0.57 months) in the four-county Puget Sound region. Many analysts consider a balanced market to be in the four-to-six-month range.
“The time between coming on the market and going off the market is the shortest I’ve seen in the last 40 years,” stated Dick Beeson, managing broker at RE/MAX Northwest, Tacoma-Gig Harbor. “The housing bubble more than a dozen years ago didn’t look like this. There was inventory. There were choices for buyers. Now they comb the internet daily, hoping they’ll get the chance to compete with other battle-weary buyers for the one new listing that appears in their price range near where they really want to live,” he remarked, adding he does not expect the situation to get better soon.
With supplies depleted, prices continue to climb. Brokers reported 8,791 closed sales of single-family homes and condos during April, nearly 50% higher than the year-ago total of 5,866 completed transactions. Year-over-year prices on closed sales surged 25%, from $452,030 to $565,000. Nearly every county had double-digit gains.
Prices on single-family homes rose about 26.5%, while condo prices increased by a more modest 12%.
“As long as housing supply remains constrained and interest rates remain low, we could see these price trends continuing well into the summer,” said James Young, director of the Washington Center for Real Estate Research at the University of Washington. He expects continued price increases along the I-5 and I-90 corridors and noted peripheral areas are continuing to outperform as people seek value in a low-interest rate environment.
Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, said Kitsap County and the Olympic Peninsula are experiencing vigorous activity from would-be buyers from the Seattle/King County area who are looking for “safety, community, affordability, and choices.” He also cited the area’s low unemployment rate and the robust economy as market drivers.
Inventory in Kitsap County has not expanded at anticipated rates, according to Leach. “Builders are perplexed with new regulations, increasing costs of construction materials, and increased bureaucratic overlays,” he stated.
The volume of new listings (including single-family homes and condos) in Kitsap County increased 47.4% from a year ago and nearly 17% from March, but total active inventory was down 47% from a year ago, resulting in about two weeks of supply (0.57 months). Leach estimates 80% of sales in Kitsap County exceeded listed values, with “many buyers making the buying decision from a virtual tour.” Year-over-year prices rose 22.7%, with the median price on last month’s sales, at $485,000, significantly lower than King County where it was $750,000.
Intense competition is causing buyers and sellers to consider shortening offer review dates, according to Dean Rebhuhn, the owner at Village Homes and Properties. “Sellers with offer review dates within five to seven days of the listing date are receiving strong offers on day one or day two of listing,” he said, adding, “Some sellers are considering offers with no contingencies and aggressive prices.”
Although bidding wars are common, Deely said some brokers are reporting things may be starting to moderate related to pricing. “Brokers tell us some sellers who have been pushing the envelope on their home price are now experiencing longer list times and, in some cases, have had to drop their prices.” He emphasized sellers need to price appropriately. “With things starting to return to normal, the off-the-chart activity placing sellers in the driver’s seat may be moderating,” he remarked.
NWMLS director Mike Larson, managing broker of the Harold Allen Team at COMPASS, agreed in part. “The real estate market was the cornerstone of the US economy during the darkest days of the pandemic, and things are not changing as we return to normalcy. “It’s still very tough for buyers.”
Larson said the value used to be what the comparable properties sold for. “Now it’s whatever the buyer is willing to pay, which is almost always more than the list price.” Although inventory remains a challenge, he believes “there may be hope on the horizon as we head into the prime-time months for sellers.”
The latest Northwest MLS report indicates condominiums may be an option for some house-hunters. A check of the MLS database shows 1,127 current condo listings with prices on these offerings ranging from $75,000 for a listing on a golf course in Adams County to $13.5 million for a penthouse on First Hill in Seattle.
Condo supply remains tight at 0.88 months (down 27% from a year ago), with prices up 12% areawide. In King County, where nearly three-fourths of current inventory is situated, year-over-year prices increased about 7%.
“It is interesting to note a continued decline in King County’s condominium inventory – down from nearly 1.6 months of supply in January -- perhaps marking a return to the urban markets with increased vaccinations,” suggested Young. The MLS report for April shows pending sales of condos for the map areas encompassing Seattle spiked nearly 184% from a year ago, from 135 units to 383.
CoreLogic research shows condos are increasingly popular with millennials with 47% of all condo mortgage applications submitted by millennials in 2019. Research by the National Association of Home Builders (NAHB) indicates improving perceptions about the availability of homes among some buyers, and especially among millennials, the largest share of home buyers. In its latest Housing Trends Report, NAHB reported the share of millennial buyers who expect housing availability to ease up in the months ahead rose decisively between the first quarters of 2020 and 2021, from 26% to 42%.
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2021-05-17T16:04:00-07:002021-05-17T16:15:54-07:00Matthew Lahtitag:pnwr.com,2012-09-20:5414Northwest MLS brokers say bidding wars, escalating prices, and buyer fatigue are widespreadKIRKLAND, Washington (April 7, 2021) – Brokers with Northwest Multiple Listing Service (NWMLS) added 10,562 new listings to inventory during March -- the highest volume since September when they added 11,210 properties to the selection. Even so, demand continued to outstrip supply, keeping inventory depleted.
The latest statistical summary from Northwest MLS shows double-digit price hikes were widespread across the 26 counties included in the report for the month of March.
Brokers logged 10,863 pending sales last month. That volume of mutually accepted offers marked a 22.3% increase from a year ago and a 40.6% surge compared to February.
“There’s no April fooling when it comes to how hot the housing market is right now,” commented J. Lennox Scott, chairman and CEO of John L Scott Real Estate. “In King, Snohomish, Pierce, and Kitsap counties, the current spring market we’re seeing is one of the best on record.”
James Young, director of the Washington Center for Real Estate Research at the University of Washington, agreed, noting March marked the first post-COVID/pre-COVID comparison. “It is very difficult to compare year-on-year results once lockdown started in late March 2020,” he stated.
“The drop in the number of active listings between now and last year is extraordinary,” Young exclaimed. NWMLS statistics show a 55.9% decline in total active listings, shrinking from 9,418 at the end of March 2020 to 4,153 at month-end. Young noted the decrease is even more pronounced in “peripheral counties.” Six counties (Clallam, Clark, Island, Kittitas, Mason, and San Juan) experienced year-over-year declines of 69% or higher, according to the latest report from Northwest MLS.
“This collapsing active listing volume in the face of high demand is telling. As this was occurring, the number of pending transactions year-over-year increased markedly. Double-digit price increases throughout the region are the natural result,” said Young.
Median prices system-wide surged 19.5% compared to a year ago. The median price for the 7,803 sales that closed during March was $548,199; a year ago it was $458,900. Prices rose in every county served by NWMLS, with seven counties reporting YOY price hikes of 25% or more.
Last month’s median price on closed sales of single-family homes and condos (combined) was up 7% from February’s figure of $512,000.
Excluding condos, the median price on single-family homes rose nearly 21% from a year ago, from $470,000 to $567,250. Compared to the previous month (February), prices were up 10% OR more in seven counties (Cowlitz, Douglas, Jefferson, Ferry, Island, King, and Pacific).
In King County, the median prices for single-family homes that sold last month in the Queen Anne/Magnolia area and every MLS map area on the Eastside topped $1 million.
Scott noted the local market is “nearly sold out all the way up into luxury price ranges,” adding it is not due to a lack of new listings but because of high buyer demand. “We’re seeing more luxury listings, which means there are more buyers entering into the market in these price ranges. This translates into very strong intensity into these luxury price ranges.”
A check of NWMLS statistics confirms Scott’s point. From January through March this year, brokers reported 400 sales priced at $2 million or more. That’s more than twice the highest number reported for the first quarter of any of the previous five years. (Last year, brokers reported 178 sales at $2 million-plus during the first quarter.)
John Deely, a member of the NWMLS board of directors and vice president of operations at Coldwell Banker Bain, described the numbers as “truly astounding related to price appreciation and inventory on hand.” As an example, he pointed to Snohomish County, where there is only about one week of inventory and where median prices for single-family homes are up nearly 22%.
Condominium prices rose 5.2% year-over-year on closed sales that increased 16% (from 1,015 closings a year ago to last month’s total of 1,179). The volume of new listings (1,528) was similar to the year-ago total (1,455), while the number of active listings (total inventory) dropped 23% YOY. Pending sales of condos surged nearly 43% from a year ago (from 1,101 to 1,574).
“While the data suggest housing sales overall may be slowing, that is related directly to a lack of inventory,” Deely emphasized.
Area-wide, NWMLS figures show there are only about two weeks of inventory (0.53 months of supply) of single-family homes and condominiums. Only six counties have more than one month of supply. The supply of single-family homes is even more depleted (0.47 months), Condo buyers fare slightly better with 0.86 months of supply. With demand outstripping supply, prices tend to rise.
NWMLS director, Meredith Hansen, owner/designated broker at Keller Williams Greater Seattle, noted the Seattle area ranked second nationally in-home price appreciation for the past 12 months. (Phoenix led all cities in the latest S&P CoreLogic Case-Shiller Indices.)
“If no new inventory came on the market, we are at 2.19 weeks of inventory, leading to bidding wars, escalating prices, and severe buyer fatigue,” Hansen remarked.
Windermere Chief Economist Matthew Gardner also commented on the imbalanced market. “There was a significant increase in new listings between February and March, but despite this, total active inventory was lower. This is a clear indication that the market remains very bullish, and homes are selling lightning fast across all price points, even in the luxury market.”
“I think a lot of the urgency from buyers is due to rising mortgage rates and the fear that rates are very unlikely to drop again as we move through the year, which is a safe assumption to make,” added Gardner.
Despite exhibiting a sense of urgency, buyers are doing due diligence to win the sale, reported Dean Rebhuhn, owner at Village Homes and Properties. “They are doing pre-inspections, including strong pre-approval for financing and deciding what price works for them. Many purchasers are considering the list price as the opening bid and making price decisions that work to their advantage,” he explained.
Escalating prices are found throughout the Northwest MLS service area.
“Most of the rapid price increases follow the familiar trend of late where the I-5 and I-90 corridors outside of King County are showing exceptional levels of house price growth,” observed Gardner. “Median house price growth in Skagit County (27.3%), Kittitas County (43.8%), Thurston County (21.2%), and Whatcom County (20.8%) all outperformed King County at 14.7%,” he noted.
Kitsap, Snohomish, and Pierce counties also outgained King County’s price growth.
Competition for the limited supply of homes is intense in Kitsap County, according to Frank Wilson, Kitsap regional manager and branch managing broker at John L. Scott Real Estate, Poulsbo. Inventory in that county is down more than 64% from a year ago, and like many counties, pending sales are outgaining new listings.
“The real story is about the pent-up demand of buyers who are jumping at each new listing that comes on the market,” Wilson reported. With COVID-related limitations on open houses, he said each open house is bracketed by many showing appointments. “It is not unusual to have 30 showings and half a dozen offers during the short time a home is on the market.”
Wilson estimates half the buyers in Kitsap County already live there and are just relocating. The other half are new to the area and are inclined to move there to leave more congested areas. Others are changing lifestyles now that they can work from home more, a military move, or simply to be closer to family and friends, according to Wilson.
Both local and national industry watchers detect rising optimism for the spring housing market.
“We are certainly seeing a return to optimism in our market as businesses continue to open up, more residents become vaccinated, and we all look forward to getting back to a more ’normal’ way of life,” said Mike Grady, president and CEO of Coldwell Banker Bain.
Grady pointed to a recent national jobs report as one reason for surging confidence. That report showed broad-based employment gains, including significant growth in areas hit worst by the pandemic, such as the leisure and hospitality sector. As the labor force continues to grow, Grady said, “We can expect the real estate market to continue to benefit.”
Grady acknowledged buyers will still face challenges. “We’re seeing mortgage rates and inflation start to increase, along with lumber costs, which will affect the costs of new construction.”
Other pressure may come from the migration of tech workers in our area, suggested Grady’s colleague, John Deely. He cited a new report from CBRE that shows the Seattle/Bellevue region now ranks #1 in technology office space leases, eclipsing San Francisco for the first time since 2013. “For the foreseeable future, buyers will need to bring their patience, a qualified and experienced broker, and a realistic outlook on the financial implications of this market as they search for homes.”
James Gaines, former chief economist at Texas Real Estate Research Center, noted the housing industry has been one of the country’s primary economic drivers during the pandemic “and not just because of low mortgage rates.” Pandemic lockdowns meant millennials’ spending for travel and entertainment was curtailed enabling them to save. “More than 40% of U.S. home purchases in 2020 were by first-time buyers,” he noted but said he anticipates getting back to “more normal rates of increase” marked by smaller growth in home prices and sales.
National experts believe housing activity could slow due to rising mortgage rates.
A recent report by Bloomberg noted the 30-year fixed-rate mortgage rose to 3.17%, the highest level in more than nine months, after falling to an all-time low of 2.65% in January.
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2021-04-07T09:46:00-07:002021-04-07T10:18:39-07:00Matthew Lahtitag:pnwr.com,2012-09-20:5088Housing market stays hot despite some lousy February weather
KIRKLAND, Washington (March 4, 2021) – Housing activity during February remained hot around much of Washington state despite a significant accumulation of lowland snow over the Valentine’s Day weekend, according to the latest statistical report from the Northwest Multiple Listing Service.
“It’s amazing how close the February numbers are when compared to February 2020, which was, of course, right before our world changed,” said Mike Grady, president and CEO of Coldwell Banker Bain. "Despite our similarly lousy February weather, the data show that the market continues to be hot, with residential inventory very tight and median prices rising by double digits across most of our counties.”
Northwest MLS figures show brokers added a similar number of new listings of single-family homes and condos last month (7,418) as a year ago (7,786), for a difference of 368 properties (down 4.7%). For residential units (excluding condos), there was a 6.8% year-over-year (YOY) drop.
Total active listings of single-family homes declined nearly 44% from a year ago. The selection of single-family homes fell more than 51% while condo inventory rose 7.9%.
“A decline in listing volume this year should not surprise anyone,” remarked James Young, director of the Washington Center for Real Estate Research at the University of Washington.
“We are virtually sold out of unsold inventory everywhere in the Central Puget Sound area except the Seattle city core,” stated J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.
There are only about three weeks of supply (0.74 months) of inventory in the MLS database, which covers 26 counties. For residential only (excluding condos), the shortage is more pronounced at only 0.67 months’ supply.
Condominium shoppers will find somewhat more selection, with inventory up 7.93% from a year ago, and more than a month of supply (1.12 months).
“While pending condominium sales were down slightly in King County (-0.56%), it’s worth noting that several urban neighborhoods, including Queen Anne, Downtown Seattle, and Ballard performed better than expected. That suggests to me that there may not be the mass exodus from the core urban areas that many have been predicting,” commented Windermere Chief Economist Matthew Gardner.
Nearly six of every 10 pending sales of condos took place in King County last month, according to the Northwest MLS report. Pending activity nearly matches the year-ago totals for that county (716 versus 720). Pending sales (mutually accepted offers) were up sharply in several Seattle neighborhoods, including Queen Anne (48.8%), West Seattle (42.1%), and Ballard/Green Lake (32.5%). Even the Downtown/Belltown area registered an uptick (4.8%).
Gardner said it was particularly interesting to see the jump in pending sales in the Puget Sound region from January and February. For the tri-county area encompassing King, Pierce, and Snohomish counties, the MLS report shows there were 4,896 pending sales in January and 5,232 sales in February for a month-to-month gain of 6.9%.
“This tells me that neither the snowstorm that hit the region nor the jump in mortgage rates deterred buyers who were still out in force last month,” said Gardner.
Lennox Scott also noted the slight increase in mortgage rates, saying it “created a mini power surge of sales activity intensity.”
Freddie Mac reported an average rate of 3.02% for a 30-year fixed-rate mortgage for the week ending March 4. That’s up to five basis points from the previous week, and the first time since July 2020 that the benchmark mortgage rate climbed above 3%.
Despite rates edging up and inclement weather during much of February, eight counties in the Northwest MLS report showed year-over-year gains in pending sales: Adams, Douglas, Grant, Kitsap, Lewis, Pacific, San Juan, and Walla Walla.
System-wide, there were 7,724 pending sales in February, a YOY drop of 7.5%, but compared to January when brokers reported 7,394 sales, the pending volume increased 4.5%.
Within King County, Gardner noted suburban markets such as Renton, Burien, “and interestingly, West Seattle (given the bridge issue),” continued to see significant sales activity in February, “but so too did more urban markets like Madison Park/Capitol Hill, Ballard/Green Lake, Queen Anne, and Magnolia, all of which reported sizable increases in home sales.”
Of the 30 neighborhood areas the MLS tracks within King County, thirteen of them showed year-over-year increases in pending sales.
Northwest MLS director John Deely, executive vice president of operations at Coldwell Banker Bain, said, “Like last year before we knew what was just around the corner, buyer demand is high. There continue to be opportunities for buyers seeking condos, and median prices are more stable, so that’s also good news for buyers.”
On the residential side (excluding condos), Deely said he is hearing more and more about multiple offer situations. “Our brokers are working hard to help prepare buyers both emotionally and financially for the realities they face and to help position them as the winning purchaser. With things opening up, and open house restrictions eased to allow more people at one time, brokers are also spending a good amount of time preparing their sellers to get comfortable with having people in their homes and to safely facilitate viewings, as well as managing and analyzing all the offers.”
Northwest MLS member-brokers reported 5,812 closed sales during February for a 10.4% increase over the year-ago total of 5,265 closings. The median price on last month’s completed sales jumped more than 15% from a year ago, increasing from $445,000 to $512,000. Twenty of the 26 counties in the report showed double-digit YOY price gains.
“Continuing low-interest rates, jobs, and lifestyle changes are driving the real estate market,” said Dean Rebhuhn, owner of Village Homes and Properties, who also noted the uptick in multiple offers. “Prepared, aggressive buyers are winning the competition for homes. Smart buyers are making substantial offers to sellers prior to the offer review date, and sellers are considering them.”
Scott noted March historically marks the beginning of an eight-month primetime real estate market. “After an intense winter in the local real estate market, more new resale listings are on the horizon,” he remarked, adding, “The intensity we’re seeing should come down slightly as more available homes enter the market, but we have to play catch-up with pent-up buyer demand first.”
Grady expressed similar views. “The positive, optimistic mood is unmistakable, and we expect that to continue as vaccines roll out, things continue opening, and projects like the Northgate Link Light Rail station are completed, allowing people to move further out as they can more efficiently manage their commutes. We are bullish on the market this spring, and frankly, for the rest of the year. Bring on the Roaring ‘20s, version 2.0,” he exclaimed.”
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2021-03-08T22:39:00-07:002021-04-07T10:14:03-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4860Pandemic presents new option for home buyers as market kept foot firmly on the acceleratorKIRKLAND, Washington (February 4, 2021) – Homebuyers who have been precluded from entering Puget Sound’s competitive market may want to consider condominiums as an option, according to industry experts who commented on the latest housing statistics from Northwest Multiple Listing Service.
“With the trend toward telecommuting and moving to outlying suburban areas, the Seattle/King County condominium market presents a new option,” suggested Gary O’Leyar, owner and designated broker at Berkshire Hathaway HomeServices Signature Properties. Noting the county’s bigger supply of condos – 1.67 months of inventory versus 0.69 months for single-family homes – and a slight break from double-digit appreciation, O’Leyar said buyers may want to take a closer look at this “window of opportunity.”
Northwest MLS director John Deely agreed, calling condos “one bright spot for buyers. They are more reasonably priced and there are more months of inventory than with single-family homes.” With interest rates so low, “buyers should definitely consider condos as an ownership opportunity and a way to build equity – especially if they’re currently renting,” said Deely, the executive vice president of operations at Coldwell Banker Bain.
Of 4,432 active listings in the MLS system at the end of January, about one of every four offerings (1,051 units, or around 23.7%) was a condo, with the remaining 76% (3,381 listings) being a single-family home.
In King County, where 76% of the available condo inventory is located, NWMLS data show prices range from $149,000 to $14,895,000, with a median asking price of $525,495. The median price for condos that sold in King County last month was $399,975; system-wide the median sales price was $359,950.
Single-family homes (excluding condos) had an area-wide median sales price of $509,950. That is $150,000 more than condos (nearly 42% higher).
Matthew Gardner, the chief economist at Windermere Real Estate, noted King County condo prices “entered negative territory in January,” down about one-half percentage point compared with the same month a year ago. He attributes increased inventory as “likely due to COVID-19, possibly pointing to a growing number of homeowners who are choosing to move further away from core urban areas in favor of more space. I’m not ready to say this is a persistent trend quite yet, but it’s something to keep an eye on.”
Commenting on the MLS statistics overall, Gardner said the market “ignored the traditional winter slowdown and kept its foot firmly on the accelerator in January.” While inventory levels were generally down in December, he noted there was actually an uptick in new listings in King, Pierce, and Snohomish counties last month. “Most of those homes sold so quickly they aren’t reflected in the overall total active inventory numbers,” Gardner remarked, adding, “Clearly, demand is still very strong which is further confirmed by the fact that year-over-year (YOY) price growth remains well above long-term averages.”
The NWMLS report covering 26 counties, shows a YOY increase in new listings of single-family homes and condos (up about 5.5%) and a jump of more than 16% in closed sales, rising from 5,074 transactions to 5,896. The median price for last month’s sales ($483,250) surged 14.3% from the year-ago figure of $422,750. Pending sales grew slightly from last year (less than 1%) but were up 7.4% from December.
“The economics of scarcity is driving prices up at an unsustainable pace,” said Dick Beeson, managing broker at RE/MAX Northwest. “What will happen this spring and summer will likely be more of the same. The real estate vortex we’re in of depleted inventory and high prices is real and unrelenting.”
“If interest rates weren’t historically low, buyers would be unable to afford the escalating cost of housing,” suggested Beeson. “We’re feeling nervous about where this market is headed,” he said, adding, “Help is not on the way. Sellers are almost as rare as the dodo bird.” Although he noted the number of new listings coming onto the market has kept pace or even exceeded last year’s totals in some areas, “new listings are immediately devoured by a plethora of waiting buyers.” The situation has buyers asking, “Am I paying too much?” and sellers asking, “Can we ask more?” That answer for both is “Yes,” says Beeson.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, expects more listings “after Super Bowl Sunday, which serves as the kickoff to the early spring housing market.” He described the current market as “incredibly hot, even all the way up to some luxury price ranges.” Historically low-interest rates remain a strong motivator for buyers, Scott stated. “It still feels like multiple-offer everything this winter.”
Some brokers are reporting up to 40 private showings for a single listing, according to Scott. “To compete in today’s ultra-competitive market, we’re seeing some buyers front-loading their offer above the list price,” he reported, explaining, “This is done in an attempt to ‘stop the action’ and push the sellers to accept their offer before the set review date.”
“The ongoing combination of very low mortgage rates and escalating prices has both buyers and sellers taking advantage of the market. Buyers are finding well-priced homes in good condition, and sellers are seeing many multiple offer situations,” reported Dean Rebhuhn, broker-owner at Village Homes and Properties. Lower prices near I-5 locations in Lewis, Cowlitz, and Thurston counties continue to attract buyers, observed Rebhuhn, who credited job opportunities and desirable lifestyles as market drivers.
James Young, director of the Washington Center for Real Estate Research at the University of Washington, said the search for value in outer areas has continued unabated, despite further lockdowns in January. “It is difficult to think of the last time when nearly every Western Washington county with the exception of Clallam, King, and Jefferson had double-digit percentage price growth,” he remarked.
This year’s “extraordinarily low inventory” (down 43% overall) suggests continued price growth into the spring as demand remains high and interest rates remain low, according to Young.
“It is somewhat of a ‘prisoner’s dilemma’ for the housing market in Western Washington,” Young commented. “Those who own do not want to sell because there is little inventory to buy. They will stay put. Those who want to buy (and get on the housing ladder) cannot get into the market because there is little available for sale.”
Kitsap County, where inventory is down 42% from a year ago, is experiencing pent-up demand from buyers that want to move there or convert from being a renter, according to Frank Wilson at John L. Scott Real Estate. As a result, prices continue to creep up, rising more than 10% from a year ago. “While this is great for sellers, it really hurts housing affordability,” he stated.
As an example of the competitive market, Wilson said a modestly priced 1,100 square foot, two-bedroom, two-bath house came on the market in West Bremerton on a Thursday evening, with offers to be reviewed the following Monday. “It had 34 showings and received nine offers,” Wilson reported, adding, “What was especially attractive to the sellers was the ability of the buyer to make up the difference between the appraised value and the sale price,” which he said exceeded the list price.
Commenting on the market overall, Mike Grady, CEO and president of Coldwell Banker Bain, said, “With everything that happened last month nationally with the Georgia runoff elections and the Capitol riots, and locally with ongoing COVID restrictions and one of the wettest Januarys on record, you would have thought the real estate market might take a slight break. However, as has been the story for so long, we really didn’t see much change. The data show inventory is being absorbed at a higher rate than last year.”
“We believe we may be heading into the typically busy spring real estate market any day now,” Grady remarked. Deely echoed that optimism. “With the major counties moving into Phase 2, resulting in open houses resuming with up to 10 visitors socially-distanced (including the broker), a new administration, and COVID-19 vaccinations underway, we’re hearing much optimism from our brokers.”
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2021-02-09T14:49:00-07:002021-02-09T15:02:26-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4753Northwest MLS brokers tally more than $56 billion in home sales during 2020KIRKLAND, Washington. (January 19, 2021) – Northwest Multiple Listing Service member-brokers reported 95,760 closed sales during 2020 valued at more than $56 billion. Both the number of transactions and dollar value eclipsed the totals for 2019.
Last year’s sales of residential (single-family) homes and condominiums outgained 2019 by 3,257 transactions for a 3.5% increase. Of the total completed sales, around 87% (83,410) were single-family homes and the remaining 13% (12,350) were condominiums. The activity in the Northwest MLS report reflects the work of more than 32,000 brokers in 23 counties. Collectively, these counties encompass more than 82% of the state’s population.
The area-wide median price for last year’s sales of single-family homes and condominiums (combined) was $475,000, a year-over-year (YOY) gain of nearly 11.8% from 2019’s figure of $425,000.
Prices for single-family homes (excluding condominiums) increased about 12.6% system-wide, jumping from $435,000 in 2019 to last year’s median price of $490,000. A comparison of counties shows King County with the highest median price for single-family homes at $724,950 (up 7.4% from 2019); Ferry County had the lowest median at $161,500 (up 7.7% from the prior year). On a percentage basis, Kittitas County experienced the largest price gain at nearly 21% (jumping from $351,200 to $424,925).
Condo prices area-wide rose about 7%, from $355,000 in 2019 to $380,000 for last year’s sales. In King County, which accounted for 55.7% of all condo sales, the median price was $430,000, up $25,000 (6.2%) from 2019.
Inventory was sparse throughout the year as brokers scrambled to replenish the supply. The number of pending sales (mutually accepted offers) exceeded the number of new listings added to inventory in all but two months (March and April, when strict pandemic-induced restrictions were imposed). At the start of 2020, there were 1.5 months of inventory but as the year closed, supply dwindled to 0.53 months (about two weeks), well below the 4-to-6-month range industry insiders use as an indicator of a “balanced” or neutral market, favoring neither buyers nor sellers.
Sales of high-end homes surged compared to 2019. Single-family homes that sold for $1 million or more during 2020 topped the previous year by 2,014 units, rising from 6,299 to 8,313 for a jump of nearly 32%. Included in last year’s tally were 82 homes that sold for $5 million or more. The highest-priced sale, at $17 million, was in Medina.
Condos that sold for $500,000 or more also outpaced 2019 with brokers reporting 3,552 such sales versus 2,951 for a YOY increase of 20.4%. Last year’s luxury sales included 576 condos that commanded $1 million or more, topped by a $9.5 million residence at the Four Seasons in downtown Seattle.
Among other highlights in its annual compilation of statistics, Northwest Multiple Listing Service reported:
Brokers added 110,595 new listings during the course of the year, just shy of the 2019 total of 110,940. July was the busiest month with members adding 12,514 new listings to the database.
Pending sales totaled 118,600 for the year, for an average of 9,883 per month. Last year’s total was about 3.7% higher than 2019.
Eight counties ended 2020 with double-digit gains in closed sales, led by San Juan County (up 46.6% and Chelan County (up 15.26%) – two areas dubbed as “Zoom towns” as sought-after destinations by migrating “work-from-home” (WFH) workers.
The median price for a 3-bedroom home ranged from $212,000 in Ferry County to $745,000 in San Juan County.
For the new construction component involving Northwest MLS brokers, newly built condos that sold last year continued to fetch higher prices than single-family homes. Last year’s closings included 11,134 newly-built single-family homes that sold for a median price of $569,993 and 1,289 condos that sold for a median price of $647,700.
Prices vary widely when comparing school districts in the MLS service area. In six districts, the median sales price for single-family homes was $1 million or higher, led by Mercer Island at $1.7 million. Other districts in this seven-figure segment were three others in King County: Bellevue, Issaquah, and Lake Washington, along with Bainbridge Island (in Kitsap County), and Shaw Island (in San Juan County).
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2021-01-19T18:47:00-07:002021-01-19T18:57:19-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4698Extraordinary market conditions sustain strong home sales around Washington state during holidaysKIRKLAND, Washington (January 6, 2021) – “Insatiable buyer demand” is keeping inventory scarce as house hunters try to outmaneuver and outbid each other, according to reports from Northwest Multiple Listing Service (NWMLS). Its statistical summary for December showed strong activity throughout the holiday season with double-digit increases in new listings, pending sales, closed sales, and prices.
Northwest MLS brokers added 5,260 new listings to inventory during December, a hefty 39.3% increase over the same month a year ago. Last month’s additions fell short of meeting demand as members reported 6,883 pending sales (mutually accepted offers). That number surpassed the year-ago volume by 940 transactions for an increase of 15.8%.
Pending sales were especially robust in several counties where year-over-year (YOY) gains of 25% or greater were notched, notably Grant (up 133%), Kittitas (up 55%), and Pacific (up nearly 43%).
“As more people are working from home, they are also purchasing properties further afield from Seattle,” observed James Young, director of the Washington Center for Real Estate Research at the University of Washington. He singled out Chelan, Clallam, Grays Harbor, Kittitas, and Mason as counties that had year-over-year price growth of 20% or more. The MLS report also shows Pacific and Whatcom counties with 20% or higher price gains.
“The velocity of the December market is a harbinger of the 2021 market as tight listing inventory, low-interest rates, and high buyer demand continue to drive momentum,” remarked NWMLS director John Deely, executive vice president, operations at Coldwell Banker Bain. “Every market serviced by NWMLS was trending below December 2019 for total active inventory,” he noted. “In King County, despite a nearly 62% increase in new listings compared to a year ago, the insatiable buyer demand quickly absorbed available properties,” he added.
Deely reviewed new listing activity during the month of December for the past decade and found last month’s total (5,260) was the largest since 2010 (5,460).
At month-end, there were 4,732 total active listings system-wide in the MLS database, which encompasses 25 counties. That’s down 44% from a year ago when the selection included 8,469 listings. Measured by months of inventory, there are only about two weeks of supply (0.53 months) overall. Only five counties had more than a month of supply, well below the four-to-six months of supply used by housing analysts as a gauge of a balanced market.
“With just over a two-week supply of homes on the market, last month maintained the extraordinary market we have seen all year,” commented Young. “For demand and supply to remain this out of balance for this time of year is incredible,” he added.
NWMLS director Jason Wall, designated broker at Lake & Company Real Estate, said 2020 was unusual “and it ended in the same way – surprising.” Noting the market typically slows during the holiday season, Wall said, “This year, with little to no travel and not much else attracting homebuyers’ attention, many of them remained very active in the market. Homebuyers that hoped to take advantage of less competition in a relaxed housing market instead found the same competitive market.”
NWMLS director Mike Larson, president/designated broker at ALLEN Realtors, described the market as “the best of times for sellers and a very challenging time for buyers. Sellers can be picky because there are almost always multiple offers. Buyers are being forced to add value to their offers in ways other than price.” Examples he cited included shorter contingencies, closing date flexibility, higher earnest money deposits, and agreeing upfront to pay the difference if a property’s appraised value is lower than the sales price.
Home prices continue to rise. For the 9,008 sales of single-family homes and condos that closed last month, prices jumped nearly 12.2% from a year ago, increasing from $435,000 to $488,000. Only three counties (Ferry, Okanogan, and San Juan) reported year-over-year price drops, while nearly all other counties had double-digit gains, according to the NWMLS report.
Single-family homes accounted for most of the price escalation. For the 7,848 closed sales of this property type, prices increased by nearly 12.9%. YOY prices on the 1,160 closed sales of condos rose about 1.8%.
“We see home prices continue to increase with jobs and lifestyle changes being two of the major factors in sales. Unbelievably low-interest rate and buyer demand continue to drive the market,” commented Dean Rebhuhn, broker-owner at Village Homes and Properties. Smart buyers are winning in multiple offer situations by doing pre-inspections and having financing approved, according to Rebhuhn.
“Housing market activity is truly off the charts,” exclaimed J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. He described activity for new listings going under contract as “frenzy-level,” fueled by low-interest rates and a huge backlog of buyers.
“Now that the holiday season is over, local housing markets will see a surge of buyers entering the market in 2021,” Scott predicts. He also reported those who can work from home are moving to lifestyle/destination markets further outside city centers.
Inventory continues to be the biggest issue and challenge for buyers, reported Mike Grady, president and CEO of Coldwell Banker Bain. “We’re seeing sparse inventory play out in more rural areas,” he noted, adding, “There are indications people are continuing to move farther out as they’re now able to work from home. 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,” he stated.
Grady also advised would-be purchasers to have patience and prepare for multiple offer situations. “An example is a recent sale one of our brokers facilitated for her buyers on New Year’s Eve. The buyers had been looking for months and won a bidding war on a listing located near Monroe by paying 18% over the list price. This is the reality of the market and it’s increasingly occurring outside the major metro areas.”
“COVID has not slowed the demand for housing. In fact, it has driven it up as people search for the perfect work from home location,” said Frank Wilson, Kitsap regional manager and branch managing broker at John L. Scott Real Estate.
With open houses prohibited due to the pandemic, Wilson said brokers remain busy showing new listings by appointment and in accordance with protocols. “We’re seeing increases in website traffic and virtual tours.”
Wilson said the story in Kitsap County, where his office is located, is not just about low inventory. “It’s deeper than that. We’ve had more houses come on the market when compared to last year. The real story is about the pent-up demand of buyers.” He said buyers are coming from all areas of the buyer spectrum, including those who are moving to improve their quality of life or escape densely populated cities, those who can now afford a house due to low-interest rates, and those who need a change based on life cycles.
Dick Beeson, the managing broker at RE/MAX Northwest in Tacoma-Gig Harbor, analyzed inventory and price changes in five Puget Sound area counties, concluding “The huge price rise in each county is driven by the extraordinarily low-interest rates and incredible lack of inventory.”
Beeson believes some King County sellers will opt for less expensive homes outside the county, such as the South Sound area encompassing Pierce, Thurston, and Kitsap counties. “With teleworking becoming the norm for many people, sellers in King County can buy a good home in a good neighborhood in the South Sound and have money left in their pocket. South Sound is a slowly awakening giant,” he predicts.
“The 2020 housing market was remarkable for many reasons, not the least of which was its extraordinary resolve through the COVID-19 pandemic,” stated Windermere Chief Economist Matthew Gardner, adding, “Who would’ve thought back in April that we would be ending the year with strong increases in both sales and prices?”
Deely, Larson, Rebhuhn, and Wall expect activity in 2021 to resemble 2020:
• “Demand-driven by the continued growth of the tech and biomedical sectors and our high quality of life with access to vast marine and alpine activities will continue to drive prices up and growth toward the suburbs.” ~ John Deely
• “So much of what is driving the market is interest rates and I don’t see the Fed raising rates in the foreseeable future. I expect 2021 to be much like 2020.” ~ Mike Larson
• “2020 real estate activity ended with a bang, indicating that 2021 will be an explosive year for listings and sales.” ~ Dean Rebhuhn
• “I expect the first half of 2021 will be very similar to last year: low-interest rates combined with low housing inventory resulting in a very active and competitive market. Multiple offers and waived contingencies will likely be the norm as we roll into the new year.” ~ Jason Wall
Economist Gardner echoed some of those sentiments, saying, “As we move into 2021, I expect continued strong demand from buyers, but unfortunately, the likelihood that there will be any significant increase in inventory is slim. As a result, I believe prices will continue to rise, which is good news for sellers but raises concerns about affordability. This, combined with modestly rising mortgage rates, could end up taking some steam out of the market but overall, I expect housing to continue being a very bright spot in the Puget Sound economy.”
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2021-01-07T11:36:00-07:002021-01-07T11:48:44-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4557Northwest MLS brokers say real estate activity across Washington remains strongKIRKLAND, Washington (December 7, 2020) – Some real estate brokers expect the competition for homes to ease somewhat over the holidays, but the latest statistics from Northwest Multiple Listing Service indicate activity is unusually strong heading into December.
“The rush is on for housing,” exclaimed J. Lennox Scott, chairman and CEO at John L. Scott Real Estate. “Real estate activity typically chills as temperatures drop but buyer demand remains high. “With low unsold inventory, all eyes will be on each new home that comes on the market,” he suggested, adding, “This strong demand is present in the more affordable mid-price ranges and extends into high-end homes.”
The Northwest MLS report summarizing November activity shows strong year-over-year (YOY) increases in closed sales (up about 23%) and prices (up 13.8%). Pending sales (mutually accepted offers) rose 7.9% from a year ago, and the year’s saga of depleted inventory continued last month with the number of total listings down nearly 43%.
Windermere Chief Economist Matthew Gardner said even though the housing market has started to show some signs of its traditional winter slowdown “activity remains higher than we would normally see at this time of year. This isn’t too surprising given the fact that the spring selling season was essentially cancelled due to COVID-19.”
Commenting on the low inventory, NWMLS director Meredith Hansen emphasized buyers need to be ready to compete. “Offers that have the best chance of acceptance are from buyers who are pre-approved with a local lender or have cash. Buyers also need to be prepared to have a pre-inspection in order to waive that contingency, and be ready to escalate in price if necessary,” suggested Hansen, the owner/designated broker at Keller Williams Greater Seattle.
Although inventory is limited, a check of the supply by price range shows about 25% of the listings across the 23 counties served by Northwest MLS are priced under $400,000, and a similar number (24.4%) are priced from $400,000 to $600,000. At the high end of the spectrum, about 21% of homes and condominiums in the database have asking prices of $1 million and higher.
“With listings down 42.8%, record low-interest rates, and demand very high in outer suburban areas, it seems like the perfect price storm has hit,” suggested James Young, director of the Washington Center for Real Estate Research at the University of Washington.
While overall inventory is down, a comparison of counties shows a wide range of deficits, according to NWMLS data. Perhaps surprisingly, King County’s supply declined “only” about 18% from a year ago, while five counties (Clallam, Clark, Island, Mason, and Snohomish) reported drops of at least 63%. A closer look at the MLS report for all counties shows the shortages are most acute for single-family homes (off 50.6% area-wide), while the condo supply improved (up 7.1%).
Thirteen of the 23 counties in the MLS report had less than one month of supply at month-end. Overall, there were about three weeks (0.73) of inventory at the end of November, well below the four-to-six months, many analysts use as a gauge of a balanced market.
Commenting on the depleted supply, NWMLS director John Deely noted the absorption of standing inventory kept King County’s residential supply (single-family homes) at 0.67 months and condo supply at 1.88 months by the end of November. “These are indicators of a solid sellers’ market for both but reflect differences in the demand for these two types of housing,” stated Deely, principal managing broker at Coldwell Banker Bain.
Deely described the real estate market in King County as a “tale of two cities” in November, explaining, “While the residential market continued its trend of record-low inventory, the condo market holds record high inventory when looking at the second half of the year, compared to the same periods over the past eight years.”
For many first-time buyers, a condominium is a path to homeownership.
Economist Gardner said there have been some “interesting shifts in the King County condominium market.” While the supply of single-family listings across the county remains painfully low, condo listings are 39% higher YOY. “Some are suggesting the increase in condo inventory is COVID-19 induced, but I think it’s too early to call this a trend as condo sales are actually higher than a year ago.”
A check of Northwest MLS statistics shows condo listings system-wide are up more than 7% from a year ago. Closed sales jumped nearly 34% overall and condo prices increased by more than 11%.
The MLS map areas encompassing Seattle have about 61% more condo listings than a year ago; the Eastside selection is up 36%. Year-over-year condo prices in Seattle rose about 8.7% while on the Eastside prices on condos that sold in November surged nearly 32%. In South King County, condo prices jumped 24% on shrinking inventory (down nearly 33%).
“The lack of inventory in all price ranges has caused a ‘gold rush’ of buyers,” reported Dick Beeson, managing broker at RE/MAX Northwest in Tacoma-Gig Harbor. Noting inventory in Pierce County is at about half of last year’s selection, setting the stage for increasing prices, he said the coronavirus pandemic has not fazed the multitude of house hunters. “It is not deterring determined buyers who know that competing buyers from outside the state are floating into town with a boatload of cash from sales of their previous digs.”
One indicator of brisk activity is the ratio of pending sales to new listings. November’s 8,584 pending sales outgained the month’s new listings, which totaled 6,425 area-wide, continuing a pattern reported during much of the year. New listings surpassed pending sales for only two months (March and April) this year, resulting in the depleted supply of active listings.
Brokers reported 6,505 total active listings at the end of November, down from the year-ago total of 11,366. Supply was at the lowest level since February.
Despite the limited selection, Deely said buyer demand remained strong through November and is more active than in previous years. “Even though open houses were curtailed in mid-November, buyers were making in-person appointments to view properties and many desirable listings had solid activity right up to the offer review date,” he reported.
As Young noted, attractive mortgage rates continued to fuel demand. Rates on a 30-year fixed-rate mortgage fell to their lowest level, at 2.71%, for the 14th time this year, according to Freddie Mac. The record-low rates are allowing people to bid up prices, Young stated.
“November has been one of our busiest months for sales and closings in years,” stated Gary O’Leyar, designated broker/owner of Berkshire Hathaway HomeServices Signature Properties. “Consumer confidence in both real estate and employment have been the benchmarks of our strong real estate market,” he added.
O’Leyar said the COVID-19 crisis has many households investing more time and monetary resources into their primary residences, with many of these homes becoming primary workplaces as well. “I see this as an ongoing trend even as we move out of the COVID crisis into the next phase of the real estate market,” he remarked.
Dean Rebhuhn, broker-owner at Village Homes and Properties in Woodinville, said the “COVID Effect” is causing purchasers to want more space, both inside and outside. “Working and schooling from home, whether full- or part-time is the new normal,” he commented, noting buyers are finding suburban and rural solutions to these lifestyle changes.
Industry watchers say the in-migration of people from larger, more expensive locales is driven not only by low-interest rates, but also by workers freed by the pandemic to work from home long-term, and by a desire for more living space by those who are working remotely, supervising their children’s schooling, or accommodating adult children and aging parents who may have been displaced because of the virus.
Organizers of a forum for the Pacific NorthWest Economic Region (PNWER) said the rise of virtual platforms like Zoom has prompted knowledge workers to flock to new frontiers known as “Zoom towns” – scenic destinations where they can live more cheaply and “achieve a work/life balance which many never dreamed of achieving.” Speakers identified several “Zoom towns” including two areas in Washington, the San Juan Islands and the Methow Valley.
Year-to-date closed sales in San Juan County are up more than 48% compared to the same period last year. In Okanogan County, where the Methow Valley is located, sales are up more than 17%.
“People are seeking space and value since they feel working from home may be a feature of their lives into the future,” commented Young, from the Center for Real Estate Research. He said Chelan County’s price movement is notable, saying it reflects that trend. Prices for sales that closed in that county last month surged 36% from a year ago.
Prices on last month’s 8,875 closed sales were up nearly 14% from a year ago, rising from $434,900 to $495,000. Seventeen of the 23 counties in the report had double-digit price gains compared to a year ago.
Kitsap County is among the areas experiencing double-digit activity in pending sales, closed sales, and prices. “Competition in the fast-moving market is fierce with buyers now using non-refundable earnest money and waiving inspections and financing. This is unprecedented compared to past markets,” stated Frank Leach, broker/owner at RE/MAX Platinum Services.
Leach said new construction in Kitsap County is at an “all-time high with numbers not seen since the ‘90s.” Even so, he said new construction is not keeping pace with demand. “That coupled with people looking to upsize for in-home offices or expanding families, or downsize for retirement, or looking for starter homes makes for an extremely competitive market.” Additionally, he continued, the sub-3% interest rates are converting many renters into homeowners. “This is a pivotal time for many and an opportunity of a lifetime to be a homeowner versus renting.”
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-12-07T21:58:00-07:002020-12-07T22:05:37-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4455Anxiety among home buyers incredibly high as they vie for unprecedented shortage of homes across much of Washington stateKIRKLAND, Washington (November 5, 2020) – “Finding and buying a home today is more difficult than at any time in the past 40 years of my career,” was how broker Dick Beeson summed up the latest statistics from Northwest Multiple Listing Service.
The Northwest MLS report recapping October activity showed a 40% drop in active listings compared to the same month a year ago, an increase of 16% in pending sales (mutually accepted offers), and a year-over-year (YOY) jump of nearly 30% in closed sales. The median price of single-family homes and condominiums that sold last month was $500,000, up 19% from the same period a year ago, according to the MLS summary, which encompasses 23 counties, mostly in Western and Central Washington.
Beeson, the managing broker at REMAX Northwest in Tacoma-Gig Harbor, said he has never seen so many buyers needing to write multiple offers before securing a home. “Interest rates are incredibly low. Inventory is incredibly low. And anxiety is incredibly high among buyers,” he remarked.
“Sellers are struggling, too,” Beeson said. “They worry they’re leaving money on the table by accepting an offer within days of their property coming on the market,” he remarked, adding, “But brokers know that in this market, if a seller doesn’t receive an offer within a short time after the property is listed, the home is most likely overpriced.”
NWMLS members added 10,428 new listings to the supply during the month, improving on the year-ago total of 8,394 for a gain of 24%. In keeping with the pattern of previous months, October’s 11,039 pending sales surpassed the number of new listings.
“Yet again, the four-county area of King, Snohomish, Pierce, and Kitsap counties broke the record for the month of October for the number of homes going under contract,” stated J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. The MLS reported 7,934 pending sales for the four-county region. A comparison of October pending sales dating to 2002 shows the previous high of 7,740 occurred in 2017.
Matthew Gardner, chief economist at Windermere Real Estate, said his biggest concern continues to be the ongoing lack of homes for sale in the Central Puget Sound area. “Keep in mind that a four-month supply of homes for sale is a sign of a balanced housing market, but in 14 counties, including the King/Pierce/Snohomish region, there is currently less than one month of supply. This is what is allowing home prices to escalate at double-digit rates.”
Whether Boeing’s recent announcement of significant layoffs will affect the housing market is being watched by industry experts.
“I’ve been watching the Snohomish County housing market closely but, as I predicted last month, there has not been any negative fallout so far,” Gardner stated. “In fact,” he continued, “compared to a year ago the number of homes for sale is down and home prices are still rising.”
Gardner said he maintains his position that “any additional inventory that may come to market will likely be absorbed swiftly as we continue to see buyers moving from the more expensive King County market to the relative affordability that Snohomish County offers.”
According to the latest MLS report, the median-priced single-family home (excluding condos) that sold in Snohomish County last month was about $165,000 (about 28.5%) less than the figure for King County ($579,972 vs. $745,000).
Area-wide the median price for last month’s sales of single-family homes (excluding condos) was $515,000, a 20.2% jump from a year ago. For single-family homes and condos combined, prices rose by double digits in 21 of the 23 counties in the MLS market area. The highest median prices for homes and condos that sold last month were in San Juan County at $705,000 and in King County at $685,000. Those two counties also had the highest median prices for single-family homes (excluding condos). In San Juan County the price was $753,250, while in King County it was $745,000.
Scott noted the luxury market in the Puget Sound region also had record-breaking sales for the month. Last month, NWMLS brokers notched 1,004 sales priced at $1 million or more in the tri-county area of King, Kitsap, and Snohomish. That volume easily surpassed the previous high of 553 luxury sales in 2019.
“Supply and demand continue to drive the real estate market,” observed Dean Rebhuhn, broker-owner at Village Homes and Properties in Woodinville. Record low-interest rates have increased purchasing power with mortgage programs such as FHA 3.5% down payments, he noted. Also, he added, “The availability of funds has allowed record refinancing for purchasing second homes and investment properties.”
With home prices increasing, which Rebhuhn believes indicates strong jobs and lifestyle demand, he said it raises questions about whether our market is underpriced. “Highly likely,” he suggested.
Brokers in Kitsap County reported a “huge pent-up demand.” Frank Wilson, the Kitsap regional manager and branch managing broker at John L. Scott Real Estate in Poulsbo, said, “The lack of listings and the extremely low-interest rates are two of a growing number of reasons why buyers are looking in our area.” He said they’re beginning to see a flight from larger cities as more and more jobs can be done remotely.
Wilson also reported strong traffic at open houses since the Governor announced in early October that limited open houses would be permitted in all counties with strict adherence to occupancy restrictions and other safety guidelines.
“Now that we can hold homes open again, we are seeing anywhere from five to 20 small groups coming through, with showings often resulting in multiple offers,” Wilson stated, adding, “It is good to see both brokers and buyers working together plus the stringent use of masks, social distancing, hand sanitizer and other tools to ensure safe and healthy showings.”
Broker/owner Frank Leach at RE/MAX Platinum Services in Silverdale said Kitsap County continues to enjoy brisk activity, “but not without the frustration of having historically low inventory. Although new listings are on the rise, they are being stripped from the market at a stunning pace. Buyers are bidding up properties as demand stays steady and inventory continues to dwindle.” He attributes part of the surge to buyers east of Kitsap County coming into the market.
Northwest MLS data show Kitsap has only about two weeks of supply (0.57), with inventory plummeting more than 41% from a year ago.
Mike Grady, president and COO at Coldwell Banker Bain, said October reflected a continuation of the summer market well into autumn and puts sellers in a great position. “We’re seeing buyers snapping homes up almost as fast as they’re listed,” he commented, adding, “With interest rates remaining at record lows and employment in major tech industries very strong, this is a good indication that we may well skip the usual slowing in the winter market altogether.”
Rebhuhn said the coming holiday season may present more opportunities for buyers, with less competition for new listings. However, given the current sparse inventory and keen competition, broker Frank Leach, a member of the NWMLS board of directors, emphasized buyers must be prepared when entering the marketplace “with funds and financials at the ready.”
Condo shoppers are less pressured in some parts of the market. System-wide, inventory is up about 5.4% compared to twelve months ago, aided in part by the addition of 1,589 new listings during the month – a healthy 37.6% YOY improvement. At month end there were about 1.5 months of supply.
Pending sales of condos jumped nearly 35%, while area-wide closings nearly doubled from a year ago, rising from 950 transactions to 1,414. Prices were up slightly more than 14%. The overall median price for last month’s sales was $395,000. In King County, which accounted for nearly six of every 10 sales (58.7%), the median price was $459,970, which reflects a 19.5% increase from this time a year ago.
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-11-13T12:24:00-07:002020-11-13T13:21:49-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4303Northwest MLS brokers say September’s home sales reached highest level since June 2018KIRKLAND, Washington (October 7, 2020) – Northwest Multiple Listing Service brokers completed 10,175 sales transactions during September – the highest monthly volume since June 2018 when MLS members reported 10,072 closed sales. September’s closings also marked a jump of nearly 28% from the same month a year ago, according to the latest statistical summary from the MLS.
“I believe this significant increase speaks to sellers becoming much more confident and buyers competing more effectively, most likely due to low-interest rates,” remarked Mike Grady, president and COO at Coldwell Banker Bain. “It’s as if we just completed our typical ‘spring’ market,” he added.
The new report from Northwest MLS showed a sharp year-over-year (YOY) drop in inventory (down 43% from a year ago), a robust increase (23%) in pending sales (mutually accepted offers), and a sizeable surge (19%) in prices for single-family homes and condos combined. Northwest MLS serves 23 counties, mostly in Western and Central Washington.
Whether last week’s announcement from Boeing to consolidate to a single 787 production location in South Carolina resulting in the loss of about 900 Puget Sound jobs will dampen home sales is unclear.
“It’s too soon to make any solid predictions about how Boeing’s announcement will affect the Snohomish County housing market, but I am watching it closely,” stated Matthew Gardner, chief economist at Windermere. “We could see an increase in the number of homes for sale as workers either leave the area or decide to sell to access the equity they have in their homes. If this does happen, the increased supply will likely be absorbed by buyers who currently have a limited number of homes to choose from and counter any downward pressure on prices.”
Grady believes any impacts will be counteracted “given recent expansion announcements by Facebook, Amazon, and Microsoft to either purchase, build or renovate major office buildings in the region.”
Impacts of the coronavirus pandemic on the housing market are prevalent, according to several Northwest MLS representatives who commented on last month’s activity.
“COVID-19 has made many reflect on what their home means to them,” remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “As a result, many people are looking to create that ideal place to call home. We are seeing a rotation of homeownership, whether that means refinancing, remodeling, or moving.”
“With the trend toward employers allowing (and in some cases, requiring) employees to work remotely, we have seen a very noteworthy increase of sales in the more affordable suburban cities,” stated Gary O’Leyar, owner and designated broker at Berkshire Hathaway HomeServices Signature Properties.
“I consistently hear examples of COVID-related housing movement from our agents, such as a willingness to live further out, plans to move to the Pacific Northwest due to the ability to work remotely, a desire for a yard, home office, vacation property, etc.” said Robb Wasser, branch manager at Windermere Real Estate/East, adding, “But I do wonder if I'm noticing these instances because I'm on the lookout for them.”
James Young, director of the Washington Center for Real Estate Research at the University of Washington, also commented on shifting desires. “People working from home, especially those with kids being schooled at home, seek both space and value. Those who already have a home have little incentive to leave.” He described the current scenario of “too much demand and limited supply” coupled with low-interest rates as “the perfect price storm.”
Supply continues to be inadequate to meet demand.
Brokers added 11,210 new listings to inventory during September, a healthy increase from a year ago when they added 9,435 for a YOY gain of 18.1%. Compared to August, the volume declined by 733 listings (down about 6%).
At the end of September, the supply totaled 9,099 active listings, well-below the year-ago selection of 15,982 listings (down 43%), and the lowest level since February.
Measured by months of supply, there is less than one month of supply (0.89) system-wide. In the Puget Sound region, only King County notched more than a month’s supply, but if condos are excluded there is only 0.85 months of supply. Mason, Thurston, and Snohomish counties had the tightest inventory, with only about two weeks of supply.
Dean Rebhuhn, broker-owner at Village Homes and Properties in Woodinville, attributes the “very active market” to record low-interest rates, jobs, and lifestyle choices. “We see a desire for homes with large yards or with acreage. Prepared purchasers are bringing strong offers to sellers, at or over asking prices with few, if any, contingencies,” he stated.
“In most areas, we are virtually sold out in the more affordable, mid-price and upper-end segments of the market,” stated Scott, adding, “We’re also seeing a record-setting number of luxury properties going under contract across King, Pierce, and Kitsap counties.”
Statistics compiled by Northwest MLS for these three counties show there were 883 closed sales of single-family homes and condos last month in the “luxury” segment based on selling prices of $1 million and above. A year ago, there were 429 sales in this category.
“With the region’s supply plummeting by over 43% compared to a year ago and month’s supply below one, double-digit house price growth should come as no surprise,” remarked Gardner.
The median price for homes and condos that sold last month across the Northwest MLS market area was $499,950, a hefty 19% jump from the year-ago figure of $420,000. San Juan County had the highest median price at $850,000, followed by King County at $698,230.
For single-family homes only (excluding condos), last month’s median price system-wide was $519,864. In King County, the median price for single-family homes was $753,600. Within King County, where NWMLS tracks 30 sub-areas, six of these areas had median prices over $1 million; five of those areas were on the Eastside.
One of the few counties that did not have double-digit price increases from a year ago was Kitsap. Prices there were up almost 8.9%.
Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, described Kitsap County as a “hotspot” for both first-time homebuyers and high-end buyers. “The phenomenal affordability factor in Kitsap bodes well for first-time buyers and those looking to downsize or upsize.” The median price for last month’s sales in Kitsap County was $418,000, according to the MLS report. That was $280,230 less than the price in King County.
Leach has noticed significant movement in the million-dollar-plus segment and said many rentals are now going on the market as investors look to move into new investments or change platforms.
Considering depleted inventory (down nearly 44% from a year ago) and vigorous demand, Leach said buyers need to “step up with their best foot forward to compete in the multi-offer environment or deal with the frustration of being outbid. Those without a pre-approval letter are not even going to get on the playing field.” He reported a resurgence of offer escalation clauses, adding, “The Kitsap market is exceptionally hot on anything below $375,000.”
“Kitsap County, like all regions, is going into year-end with an extreme deficit of listing inventory,” said Frank Wilson, the Kitsap regional manager and branch managing broker at John L. Scott Real Estate in Poulsbo. “With 507 new listings come to market and 564 go to pending status, our deficit is deepening.”
Wilson also reported a backlog of buyers. “Our brokers are working with buyers who have made offers on 10 or 12 homes only to lose out to cash buyers or buyers who were willing to pay significantly more than the list price and waive all conditions, including an inspection.” He said brokers are bracing for an influx of buyers from King County where some residents have concerns about living in the Seattle area. Wilson believes “more buyers in the hunt for homes in Kitsap will only intensify competition and inflate prices.”
O’Leyar believes Seattle continues to be a desirable destination. “Despite the numerous negative news stories about Seattle and anecdotes of an exodus out of the city, it is still a city where more people are moving into versus out of.” MLS figures indicate YOY closed sales of homes and condos in Seattle jumped from 750 sales in September 2019 to last month’s total of 1,189 (up 59%).
Notably, the Seattle map areas tracked by Northwest MLS showed a modest 8.4% gain in active listings compared to a year ago, fueled by the addition of 527 listings of condos. That’s up from the year-ago total of 308. The median price for last month’s closed sales in Seattle (including single-family homes and condos) rose 11%, from $684,500 to $760,000.
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-10-12T17:59:00-07:002020-10-12T18:10:42-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4157Would-be home buyers have more buying power, but also more competition for meager inventoryKIRKLAND, Washington (September 4, 2020) – Extremely low-interest rates mean would-be home buyers have more buying power, but sparse inventory and increasing home prices in many parts of Washington state are leaving many buyers unable to take advantage of these attractive rates, reported broker Frank Wilson upon reviewing the latest statistical report from Northwest Multiple Listing Service.
The August report from Northwest MLS, which covers 23 counties, shows pending sales surged nearly 25% from a year ago, rising from 10,602 mutually accepted offers to last month’s total of 13,224. Within the four-county Puget Sound region encompassing King, Kitsap, Pierce, and Snohomish counties, brokers reported 9,179 pending sales. A review of MLS records dating to January 2002 shows that volume was surpassed only once, in May 2017 when brokers notched 9,188 pending sales.
“In order for buyers to be successful in purchasing a home in today’s climate, they have to do some pretty illogical things,” remarked Wilson, the Kitsap regional manager and branch managing broker at John L. Scott Real Estate in Poulsbo. As examples, he listed waiving inspections, paying more than the house is worth, or agreeing to pay the difference in cash between the lower appraised value and the sales price. “These are counterintuitive to what we used to see with a negotiation process,” he lamented.
“The lowest number of homes for sale in more than 20 years combined with the lowest mortgage rates on record are resulting in the perfect storm of frustration for buyers – but they are still out in force,” stated Windermere Chief Economist Matthew Gardner. “The few homes that are on the market are being snapped up quickly, and this excess of demand is causing record-high prices for single-family homes in the Puget Sound area.” He also noted rising demand for lower density housing in outer suburbs.
Brokers added 11,943 new listings to inventory during August, down from July, when they listed 12,514 homes and condominiums, but up from the 10,488 properties they listed during the same month a year ago. Commenting on the dwindling supply, J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, said “For the greatest selection and availability, the next two months of September and October will be the best months until next March.”
At the end of August, the Northwest MLS database included 9,591 total active listings, down almost 43% from a year ago when the selection totaled 16,697 listings. With pending sales (13,224) outpacing new listings (11,943), the months of inventory continues to shrink. Area-wide there is less than one month of inventory (0.97). Nine counties had under a month’s supply. Four-to-six months is a common indicator of a balanced market, according to industry experts.
“The housing inventory deficit continues in Kitsap County with 558 new listings coming on the market during August and 664 going under contract, leading to an ever-declining number of available homes to purchase,” said Wilson. NWMLS statistics show there is 0.81 months of supply in that county. “There currently seems to be no path back to a ‘normal’ market of 1,400 to 1,600 homes available, which has historically been a balanced market in Kitsap County,” he added.
“Kitsap County continues to have a competitive market,” agreed Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale. He noted buyers from eastern Puget Sound and South Sound are among those who are competing for the depleted inventory.
“Many buyers are bidding up their offers. We are also seeing some of the highest historical numbers of contingent offers,” added Leach, a member of the Northwest MLS board of directors. He also noted builders are scrambling to get projects approved. “Builders were looking for some relief from the COVID shutdown and a quick startup only to be faced with runaway prices on building materials and supplies which has caused delays in delivering new homes on time.”
With an insufficient supply, prices are appreciating at double-digit rates in most counties in the NWMLS report. Systemwide, for last month’s closed sales, prices increased by nearly 14% compared with a year ago. Member-brokers reported 9,847 closed sales, up more than 4.8% from a year ago. That volume was the highest since June 2018 when there were 10,072 completed transactions.
In the four-county Puget Sound region year-over-year (YOY) prices jumped 17%, from $500,000 to $585,000.
Commenting on prices, James Young, director at the Washington Center for Real Estate Research, noted prices all along the I-5 corridor and the Puget Sound increased by double digits. “As people continue to seek housing outside the urban centers and within a two-hour drive of Seattle, the expected seasonal increases in prices in areas such as Island and San Juan counties have been extraordinary,” he remarked. NWMLS reports show San Juan County experienced the most notable spike at 43.6%. Island County prices increased by nearly 22% from twelve months ago. Also noteworthy was Jefferson County where YOY prices jumped 27.9%.
“Home prices continue to increase, suggesting that now is a good time to buy,” stated Dean Rebhuhn, broker-owner at Village Homes and Properties in Woodinville. He described low inventory as “problematic,” adding “Based on current low inventory and low-interest rates, I expect the real estate market will continue to be robust into 2021.”
“We continue to see a flurry of activity in a market that has not allowed the pandemic to have a continued effect,” observed Mike Grady, president and COO at Coldwell Banker Bain. “Case in point: in January, the median sales price for the entire NWMLS was $422,750 and it is now $490,000 – a 15.9% surge in eight months. At the same time, we have nearly half as many months of inventory now than April – just four months ago (0.97 vs. 1.75). “The competition for buyers continues to be relentless, but luckily, much lower interest rates offer some relief.”
Scott said one area of note is luxury sales. “We’re seeing strong luxury activity in all areas locally. August brought strong and at times record luxury sales numbers in many areas.”
John Deely, the principal managing broker at Coldwell Banker Bain, agreed, saying his analysis indicated the luxury market of residential properties priced at $2 million or more reached all-time highs in several areas during August. “The number of both pending sales and closed sales over $2 million hit new records in August. The number of new listings coming to market in the $2 million-plus range also set records.”
Deely also reported seeing “many more low appraisals with the rapid price increases and bid up prices due to the low inventory.”
Another metric cited by one of the Northwest MLS representatives was the “sale fail rate,” which tracks the percentage of failed transactions as a part of total written transactions. “What’s interesting is that it hasn’t changed through this entire year,” according to Grady in referencing Coldwell Banker Bain’s experience. “This seems to indicate that brokers are able to quickly move and successfully close a high number of sales. COVID conditions have had little or no effect on buyers and sellers closing transactions.”
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-09-10T09:26:00-07:002020-10-12T18:04:59-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4156Virtual tours proving popular among Northwest MLS brokers and their clientsKIRKLAND, Washington (September 1, 2020) – Conducting business virtually “has been quite a shift for us,” admitted Frank Leach, a director at Northwest Multiple Listing Service. Now, he added, “I don’t see it reverting to what we had done in the past. Even our broker tours are now done virtually.”
Although “shelter in place” directives, bans on group gatherings, office closures, and other mandates prompted by the coronavirus pandemic were disruptive to the housing market when first implemented, Northwest MLS data and members indicate home sellers, buyers, and real estate brokers have pivoted to various forms of virtual tools and are routinely using software and apps to manage tours and transactions.
“ShowingTime has been a huge success. Utilization of tools within it continues to multiply as more and more agents realize the flexibility of the system,” reported Leach, broker/owner of RE/MAX Platinum Services in Silverdale. (ShowingTime, an online home showing scheduling and management tool, is used by more than 250 multiple listing organizations in the U.S. and Canada.)
Northwest MLS records show impressive year-over-year surges in the number of showing appointments. In June 2019 member-brokers logged 20,998 appointments. For the same month this year the volume increased eightfold, to 168,546. Similar jumps occurred in July when ShowingTime appointments increased from 20,246 a year ago to last month’s total of 189,832.
Before scheduling an onsite tour of a listing, house-hunters can preview properties and neighborhoods from the comfort of their homes, phones, or mobile devices.
In May, NWMLS enabled listing brokers to input up to three links for touring choices on each of their listings, including options such as 3-D tours, recordings of video walk-through tours of the home, or photo reels.
On June 1, only about 2% of listings with virtual tours had two or more links, according to Northwest MLS statistics. By July 27, more than 12% of the listings (including active, contingent and pending) featured two or more touring options.
Leach said the response to adding multiple options “has been incredible from both brokers and consumers. Our clients are finding they can cover a lot of ground by using virtual tours and Live Stream Open Houses. The Live Stream Open House option enables agents to set up chats with prospective buyers and interact with them live on various platforms.”
Matterport videos and imagery are well received, Leach stated, in part because they allow visitors to walk through a house and see more details, such as floor-to-ceiling and fully immersive 3D floor plan views.
“The viewer can fully control their experience of the home and its surroundings,” Leach continued, adding, “Many folks from the east side of Puget Sound preview properties using Matterport videos before traveling to Kitsap County and booking an in-person tour.”
House hunters can tour properties anytime, from almost anywhere, and with an assortment of devices. “It’s like holding a 24-hour open house,” remarked one broker.
Member-brokers at NWMLS can also showcase their listings at specific times using the Live Stream Open House option. Viewers can interact with the listing broker in real time while adhering to social distancing guidelines. No driving required!
Live streaming is also used by affiliated services such as home stagers and inspectors who can exchange information with the listing broker and provide feedback before the broker holds open houses for the public or other brokers.
Renee Vanous, a luxury marketing specialist and founder of The Vanous Group at Windermere Real Estate/East in Bellevue, said she and her team use both Live Stream Open Houses and live virtual tours on her listings and other “unique listings.” In addition to generating “great feedback,” she believes these guided tours give her team an edge over brokers who don’t do them.
Vanous’ team produces video tours for all their listings. Facebook and Instagram are among tools they use to attract viewers. The videos have proven to be a successful tool, even though Vanous readily admits the quality is not perfect. “Some people have said that’s why they like it. It is authentic and true to who we are,” she stated.
Virtual tours are increasingly popular with NWMLS members. That previewing option is offered on more than 10,000 listings in the MLS database (including active, contingent, and pending listings).
RAREnorthwest, a group of women at Windermere that works as a team, has embraced virtual open houses for their listings. Team member Trish Englund said they use Facebook Live to stream their videos. “Our video tours, Facetime and YouTube channel are a hit with many of our clients who prefer that option for previewing during COVID,” reports Englund.
The Milkovich Team at John L. Scott adopted virtual open houses on Facebook Live at the beginning of the COVID-19 shutdown. They use Facebook Live to promote open houses, then boost their posts afterward to targeted audiences, and send the link of the recording using BombBomb (a video email marketing platform) to their database. “We may even coach the seller to use the video on their own social media platforms,” added Kristine Milkovich.
Unlike traditional open houses, virtual open houses are accessible to thousands of viewers – more than could possibly tour a traditional open house, explained Lisa Milkovich. Additionally, she noted clear messaging about the property comes from the listing broker “and it can be shared and distributed in a number of different ways.”
“We have experienced tremendous traction and social media engagement on these videos,” they reported. As examples, a video tour of a listing in a gated community in Mukilteo has drawn around 500 views and another video of a home in Redmond’s Grass Lawn Park neighborhood has attracted more than 1,000 views.
Leigh Buchan Harvey, managing broker and branch manager at Windermere Real Estate/M2, LLC, in Lynnwood, has mixed opinions on virtual open houses based on early experiences in her office. “The process of doing virtual open houses is pretty intense,” she stated, citing various steps to attract viewers. She suggested more efforts may be needed to broaden the reach and increase public awareness of this option, adding she intends to continue experimenting with promotional tools.
Harvey believes virtual open houses are a viable option, saying, “They provide great opportunities to interact with the listing broker or broker hosting the event” but also noted the “timing to keep the home on the market until the advertising concludes can add to the tension.” Many of the brokers in her office “are more seasoned veterans” who are not doing virtual opens “because they don’t have to” in the current fast-paced market.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS (www.nwmls.com) is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.2020-09-10T08:31:00-07:002020-09-10T09:23:03-07:00Matthew Lahtitag:pnwr.com,2012-09-20:4053Opportunities abound for home buyers and sellers, but brokers say don’t delayKIRKLAND, Washington (August 6, 2020) – Brokers added the largest monthly number of new listings during July since May 2019, but pent-up demand from homebuyers meant inventory remained tight, according to Northwest Multiple Listing Service (NWMLS) representatives who commented on the latest housing activity report.
The Northwest MLS report for July, which covers 23 counties in Washington state, shows brokers added 12,514 new listings during July, up from the year-ago total of 11,193 for a gain of 11.8%. Pending sales jumped nearly 14%, while inventory remained well below year-ago levels (down about 39%). Measured by months of inventory, the system-wide supply slipped to about a month (1.04 months).
MLS member-brokers reported 9,840 closed sales during July, up slightly more than 3% from a year ago and the highest volume since June 2018 when they notched 10,072 completed transactions. Overall prices on those sales, which include single-family homes and condominiums, jumped 12.8% from twelve months ago, rising from $429,900 to $484,995. Prices on single-family homes (excluding condos) surged 13.6% (to $499,950), while year-over-year (YOY) condo prices rose about 8.6% (to $380,000).
“Opportunities abound for both buyers and sellers if they’re willing to act quickly,” said Mike Grady, president and COO of Coldwell Banker Bain in Bellevue. Interest rates at historical lows means those who are looking to purchase their first or even their second home can get much more for their money, he explained. He mentioned a broker in their Kirkland office reported her first-time homebuyer client obtained a 30-year, fixed-rate FHA secured loan “at an incredible rate of 2.25%!”
Conversely, Grady acknowledged, depleted inventory means “We are seeing multiple offers in just about every market and at every price point.” He estimates there are only about 24 days of inventory in the major population centers in King, Kitsap, Pierce, and Snohomish counties.
“We’ve seen an uptick in the number of listings in King and Snohomish counties, but it’s still well below what we need to meet the volume of buyers right now,” emphasized Matthew Gardner, chief economist at Windermere Real Estate.
NWMLS director John Deely characterized the market as being in “high gear” during July, with pent-up demand and the need for housing outweighing fears of the coronavirus. “Although new listings of single-family homes in King County jumped more than 24% from a year ago, the total available inventory dropped to a 10-year low for the month,” he remarked. “Single-family listings priced at or below market are receiving multiple offers with one recent Seattle listing attracting 40 offers,” reported Deely, the principal managing broker at Coldwell Bank Bain in Seattle.
“I see a lot of people who I think would otherwise be content to stay in their homes now rushing to get their homes on the market. Likewise, for buyers – particularly first-timers. It’s the fear of missing out,” stated Mike Larson, president/designated broker at ALLEN Realtors and a director at NWMLS.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noted that last month’s pending sales in King, Snohomish, Pierce and Kitsap Counties were the best-ever for the month of July. “Sellers benefit from the highest median home prices, while buyers are taking advantage of the lowest interest rates on record. The combination of the huge backlog of home buyers and being virtually sold out of inventory makes it feel like it’s a multiple-offer everything,” he exclaimed, saying, “This is a historic moment in residential real estate.”
An unprecedented eight counties in the NWMLS report had less than one month’s supply of homes and condominiums for sale at the end of July. They included Clark, Cowlitz, Island, Kitsap, Mason, Pierce, Snohomish, and Thurston.
“Kitsap County continues to be attractive to East Puget Sound buyers as well as stay-at-home professionals,” said Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale. Residents are now enjoying the speedy open-access fiber-optic connections that Kitsap PUD started installing years ago, initially to serve rural areas that lacked broadband access, according to Leach. “High-speed internet access has become a definite selling point for many homes and building sites,” stated Leach, who also serves as a director at NWMLS.
Leach noted July’s 527 pending sales of single-family homes in Kitsap County outgained new listings (508), contributing to a 37% YOY deficit in active listings (382 last month versus 606 a year ago). “As market demand continues, the median value jumped 11.7% from a year ago.” MLS figures show the median price on that county’s single-family home sales rose from $383,500 to $428,193. “Buyers are frustrated with the low inventory but elated to see interest rates continuing to drop. We are seeing offers coming in well over the list price, but this may not last long as inventory continues to inch up.”
“Suburban lifestyle continues to draw buyers,” agreed Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. “July sales suggest homes may be underpriced. With record low-interest rates under 3%, buyers have increased purchasing power, but with low inventory prices continue to increase,” he observed.
Economist Gardner suggested the double-digit home price growth in Pierce County “might point to the theory that there’s a COVID-induced flight from more urban markets,” adding, “This also supports my forecast that home prices in Pierce County in 2020 will rise a significant 10.6% compared to 2019.”
Grady suggested the median price increases of around 20% or more in counties outside of the metro job centers, including Cowlitz, Grays Harbor, Lewis, and Okanogan “show that remote work practices are having an effect, and people can now move to more rural areas and work from home.”
James Young, director at the Washington Center for Real Estate Research, also commented on increased activity in areas outside of King County. “Outer areas continue to outperform. There not only appears to be a continued move to value in areas outside the Seattle region, there also appears to be a move outside the main cities.”
“Everyone is buying now,” Young remarked. “With the virus and increased home working, people are able to move to suburbs and outer areas in search of value and lower population density,” he added, pointing to dwindling supply in several outlying areas. “Demand will continue to far outstrip supply for a quite a while,” he predicts, adding, “When you can work from home, why pay a premium to be close to the office?”
Median prices area-wide rose 12.8% from a year ago, with only two counties (Jefferson and Pacific) reporting small declines. Fourteen of the 23 counties in the report had double-digit price increases.
Gardner predicts 2020 home prices will rise by 5.4% in King County and 5.8% in Snohomish County compared to 2019 due to the continued shortage of homes for sale and market demand.<br />
King County continues to have the highest median price for homes and condos at $670,000 (up 7.2% from a year ago), but a look at that county’s 29 map areas covered in the report shows price changes ranging from an increase of 21.6% in North Seattle to a 17.4% decrease in the Bellevue area west of I-405.
Commenting on prices, Deely said properties with aggressive (over-market) pricing “are sitting idle as the current pool of savvy buyers waits for price reductions or for properly priced, new listings.”
"July was great month,” Grady concluded. “The trend we’re seeing foretells stronger results going forward for the next three months, especially in the context of the slowdown we experienced in April and May.”
Scott agreed but expects robust activity to continue for a longer period. “We anticipate the market will remain this way until at least April 2021. At that time, we believe normal seasonal patterns will emerge.”
Leach reported builders are frustrated at not having the inventory to meet current demand and “tradespeople are strained to meet the construction needs.” He also noted more and more buyers are making buying decisions based on virtual tours and cautioned buyers, “If you see something that piques your interest, don’t delay!”
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS (www.nwmls.com) is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-08-12T22:36:00-07:002020-08-12T22:45:46-07:00Matthew Lahtitag:pnwr.com,2012-09-20:3890Northwest MLS brokers report robust activity amid low interest rates, tight inventory, changing lifestylesKIRKLAND, Washington (July 6, 2020) – Historically low-interest rates and lifestyle changes are fueling housing activity around Washington state, according to Dean Rebhuhn, president of Village Homes and Properties in Woodinville. Commenting on just-released June statistics from Northwest Multiple Listing Service, he and other brokers say multiple offers are common “especially in the median price range.”
Brokers in the 23 counties that are part of Northwest MLS point to a shortage of homes as a key factor in the bidding wars. At the end of June, there was only 1.16 months of supply system-wide, which is the second-lowest level in the past decade. (The lowest mark, at 1.12 months, was in December 2017.)
Not surprisingly, the supply/demand imbalance is causing prices to ratchet up. Median prices for last month’s 8,312 closed sales of single-family homes and condos increased by nearly 5.7% compared to a year ago, rising from $440,000 to $465,000. A comparison to May shows an increase of more than 3.3%.
In the four-county central Puget Sound area, year-over-year prices rose even more. Of these counties, King County had the smallest increase at nearly 5.9% (rising from $637,675 to $675,000). Pierce County prices jumped nearly 8.2%, from $372,500 to $403,000. Prices were up nearly 6.7% in Snohomish County and more than 7.7% in Kitsap County.
“Multiple offers are back with a vengeance as buyers are handicapped by having only about half the inventory of a year ago,” noted Dick Beeson, managing broker at RE/MAX Northwest in Tacoma-Gig Harbor. “The refrain, ‘Sorry to tell you, but the seller has accepted another offer,’ is heard with regularity,” he stated, adding, “If a buyer finds a home they like, it’s likely 20 other people will be vying for it, and the battle is on.”
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noticed a major increase in sales activity intensity, which measures the percentage of homes that sell within the first 30 days of going on the market. “It’s almost as if the cupboards were bare in the more affordable to mid-price ranges where the majority of sales take place,” he remarked.
“What a difference a month makes,” exclaimed Matthew Gardner, the chief economist at Windermere Real Estate. “What is abundantly clear is that the COVID-19 induced slowing in housing activity that we saw in May was not enough to freeze the Seattle housing market for very long,” he added.
Gardner described the month-over-month gains in pending sales, closed sales, and prices as “very significant” and indicators of a housing market that is “very robust.”
The new report from Northwest MLS shows last month’s volume of pending sales surged 15% from May (increasing from 10,389 to 11,916); closed sales jumped more than 39% (from 5,957 to 8,312), and month-over-month prices rose more than 3.3% (from $449,850 to $465,000).
Year-over-year comparisons show pending sales increased by nearly 3%, closed sales dropped about 12.3% and prices increased by 5.7%.
James Young, director of the Washington Center for Real Estate Research, noted the shortage of inventory is resulting in higher prices and rising demand “in places that are more rural and popular with older people trading down.” He named Jefferson County (Port Townsend), Kittitas County (Suncadia), and Chelan County (Wenatchee and Chelan) as examples. NWMLS figures show all three areas had some of the steepest price gains coupled with a rapidly shrinking supply.
“Extraordinarily low month’s supply indicates that prices may have more room to move in areas popular with people trading down or seeking more space but still close to Seattle,” suggested Young. “Mason County and Thurston County come to mind, but interestingly, several Central Washington counties had strong year-over-year price growth including Kittitas (30%), Chelan (22%) and Grant (9.4%).”
Young also noted the pre-pandemic migration patterns to outer suburbs or more rural areas appear to have accelerated now that lockdowns have eased.
Some MLS representatives who commented on June’s numbers were encouraged by listing activity. NWMLS members added 10,709 new listings last month, lagging a year ago when brokers added 11,977 new listings, but improving on May’s total by 838 listings (up 3.5%).
“In many areas we are seeing new listings making a comeback, which is a welcomed sight for buyers encountering stiff competition,” stated Scott. “As the economy continues to open up at a steady pace, we anticipate more sellers will choose to list their homes,” he added.
Gardner called the number of homes for sale “perilously low,” but said, “The month-over-month jump in new listings was encouraging but it did not help overall inventory levels as they all sold too quickly!”
The MLS report shows pending sales totaled 11,916 to outgain the 10,709 new listings. At month-end, there were 9,670 active listings in the MLS database, well below a year ago when the selection included 16,680 homes and condos for a drop of 42%. June’s total also declined from May when there were 10,357 active listings.
“No wonder the number of closed sales is down – there’s hardly anything to buy,” proclaimed Beeson.
Mike Grady, president and COO of Coldwell Banker Bain, said agents are reporting a lot of interest in outlying areas such as Bellingham, Bainbridge Island, Eastern Washington, Bend, Oregon and other destinations with recreational amenities that appeal to buyers who are able to work from home or take early retirement. As inventory diminishes in those areas, Grady is hoping this trend may open up additional inventory in the Puget Sound region.
Grady also commented on the industry’s increased use of technology during “stay-at-home” directives. “Virtual transactions are becoming more common,” he stated, citing the experience of a broker at their Issaquah office. She recently handled two transactions 100% virtually with the buyers purchasing their homes without ever personally stepping inside, according to Grady.
Rebhuhn also reported rising interest in moving to suburban neighborhoods and to Central and Eastern Washington. “The reasons are more space, lower prices, and lower taxes. They have found they can accomplish most of their work and business from home.”
“If we were not amid a pandemic and the restrictions on showings and public open houses, it seems like just another summer real estate market,” said Gary O’Leyar, designated broker/owner at Berkshire Hathaway HomeServices Signature Properties in Seattle. “We continue to see price appreciation over last year as well as the all too common shortages of inventory. Buyers are wisely taking advantage of record low-interest rates. Potential sellers might take note: If you have given any thought about selling, this may well be a particularly good time to do so!”
In a recent report, Housing Wire, a news portal for mortgage and housing professionals, indicated last week’s average rate for a 30-year fixed mortgage, at 3.07%, was the lowest in a Freddie Mac data series that goes back to 1971. Its Housing Recovery Index shows Seattle is among the markets showing the greatest recovery.
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-07-07T09:11:00-07:002020-08-12T22:38:37-07:00Matthew Lahtitag:pnwr.com,2012-09-20:3752Housing activity in Western Washington shows resiliency as buyers, sellers, and brokers adjust to COVID-19 restrictionsKIRKLAND, Washington (June 5, 2020) – “The market has proved to be very resilient,” remarked Northwest Multiple Listing Service director Mike Larson upon reviewing the statistical report for May. “Buyers in Pierce County stepped on the gas last month after a brief, but significant, tap of the brakes in April,” added Larson, the president and designated broker at ALLEN Realtors in Lakewood.
Despite the economic downturn and disruptions stemming from the coronavirus pandemic, Northwest MLS member-brokers reported impressive improvement from April to May on some key indicators. The volume of new listings, including single-family homes and condominiums, rose 29.2% and pending sales jumped more than 44% systemwide.
Not surprisingly, year-over-year comparisons showed sharp declines. The number of new listings fell nearly 33%, total active listings plummeted nearly 36%, pending sales declined 13.5%, and closed sales dropped about 35%. Prices remained in positive territory, rising about 2.3% from a year ago.
“The resiliency of the market is amazing,” remarked Dean Rebhuhn, owner of Village Homes and Properties in Woodinville. “I didn’t think I would miss open houses until they could not happen,” he said, referring to limitations on in-person interactions. “The pandemic may be causing buyers to move farther out, wanting to get some space and a useable yard.” Amenities such as parks and trails are also important in current homebuying decisions, he added.
Brokers and homebuyers alike seem to be adjusting to restrictions imposed on the real estate industry because of the coronavirus pandemic.
“The local real estate market is hot, but it looks different than it traditionally does,” remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “The constraint on available inventory makes it feel like we’re running out of homes to sell.”
Brokers added 9,871 new listings to the MLS database during May, which compares to 14,689 for the same period a year ago. At month-end, the selection included 10,357 active listings; that volume was 5,766 fewer than the year-ago total of 16,133.
Stated another way, at the end of May there were 1.74 months of supply across the 23 counties served by Northwest MLS. Inventory levels ranged from 1.1 months of supply in Thurston County to more than 8 months in San Juan County. Within the four-county Puget Sound region, supply ranged from 1.2 months in Pierce County to 1.74 months in King County.
Scott said buyers are “eagerly waiting for each home to come on the market with an increased focus on homes in the more affordable and mid-price ranges.”
“Anything under $1 million is selling quickly, and most new listings coming to market are going pending in just a few days,” stated Mike Grady, president and COO at Coldwell Banker Bain. Multiple offers seem to be in play on homes in median price ranges. “We don’t think we’ll see a balancing of the market in the short term until more sellers decide to list their homes and until new construction accelerates to meet demand.” He noted activity was showing steady improvement in each passing week and month. “The stories I hear continue to be filled with improving outlooks and activity so we’re cautiously optimistic about what summer will bring.”
Larson agreed, saying “Multiple offers and waived inspections are common as we head into the prime selling season. Underwriting requirements have tightened a bit, but rates are still very low.”
Commenting on Gov. Jay Inslee’s “Stay Home, Stay Healthy” order in effect since March and the more recent “Safe Start Proclamation,” Northwest MLS director John Deely said the challenge was met with new processes and tools to help comply with social distancing and other protocols. “Brokers jumped in with both feet to produce and use a new live-streamed open house feature released by the MLS in late April,” added Deely, the principal managing broker at Coldwell Banker Bain in Seattle. “Buyers could also use virtual tours to view homes, recorded virtual tours, videos, 3-D tours, drone photos and interactive floor plans,” he added.
Appointments to show properties under the limitations of a broker and one or two others (depending on the county where the property is located) “were booked solid from dawn to dusk in many areas,” according to Deely. “Multiple offers and a competitive environment prevailed through the month of May. We found many sellers accelerated their plans to sell upon hearing the forecast for an extended “stay home” order. Many buyers were impacted by layoffs or furlough and had to put their home purchase plans on hold for now.”
The NWMLS report shows 10,389 pending sales during May, improving on April’s total of 7,207 (up 44%), but down about 13.5% from the year-ago total of 12,006.
NWMLS director Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, said sales are brisk in the $350,000 and below range, and sales of $1 million and up are gaining. “The tempo of the market seems to be very hot, with buyers trying to take advantage of lower interest rates, and both lenders and real estate agents scrambling to meet demand.”
Leach believes this is “likely one of the best markets we have ever seen both in interest rates and affordability. People who are betting there will be a bubble burst are going to miss the market.”
NWMLS members completed 5,957 transactions during May, a slight improvement from April’s total of 5,866. When compared to a year ago, however, the number of closed sales, at 9,153, marked a decline of about 35%.
The median price on last month’s closed sales was $449,950 across the NWMLS coverage area. That compares to the year-ago figure of $440,000 an increase of about 2.3%.
Five of the 23 counties in the report had year-over-year price drops: Ferry (-30%), King (-2.8%), Kittitas (-2.95%), Pacific (-12.8%), and San Juan (-17.8%). The biggest increases were in Okanogan County (30.3%) and Grays Harbor County (15.7%).
“I don’t think anyone should be surprised that home prices in King County took a ‘breather’ in May,” said Matthew Gardner, chief economist at Windermere Real Estate. “Clearly COVID-19 was the cause for this drop, but I’m confident this is a temporary situation that will be reversed as King County starts to reopen, and fresher inventory comes to market.” The robust increase in listings between April and May combined with pervasively low mortgage rates “tells me prices will resume their upward trend in the coming months,” he added.
Leach said when Kitsap County moved into Phase 2 of the governor’s reopening plan, the Kitsap Department of Community Development processed over 400 permits, which he believes “is just the tip of the iceberg as builders rush to meet consumer demand. Builders are now seeing folks who commuted to work looking to purchase homes with an extra den or office as they anticipate the “work from home” aspect is here to stay.”
Grady also commented on the slight price drop in King County, saying he believes it’s a reflection of reduced activity in the luxury home market ($2+ million), which disproportionately impacts over price averages. “This may be a reflection of a ‘wait and see’ attitude or just the uncertain times we’re in.”
Northwest MLS statistics for King County show a correlation of declining sales in the luxury market and the impact of COVID-19:
<img src="https://assets.site-static.com/userfiles/1399/image/blog/nwmls-king-county-luxury-real-estate-market-may-2020.png" width="50%" height="auto" alt="NWMLS Luxury Real Estate Market King County May 2020" title="NWMLS Luxury Real Estate Market King County May 2020" />
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-06-07T08:53:00-07:002020-06-07T09:20:28-07:00Matthew Lahtitag:pnwr.com,2012-09-20:3676Western Washington housing market adjusting to new ways of operatingKIRKLAND, Washington (May 6, 2020) – Residential real estate activity around Western Washington reflected expected declines during April with the impact of the coronavirus pandemic taking its toll. A new report from Northwest Multiple Listing Service shows year-over-year (YOY) drops system-wide in new listings, pending sales and closed sales, but prices increased by nearly 6.4%.
“With the first full month of post-COVID-19 data in hand, it’s clear the Puget Sound housing market has been hit but not knocked out,” stated Windermere Chief Economist Matthew Gardener. “The normally active spring market is significantly slower than normal due to COVID-19, but it has not come to a halt,” he observed, adding, “In my opinion, it is responding to the current circumstances exactly as expected.”
Some industry veterans expected more severe declines. “As we look at the numbers for April, typically one of the most active months in regard to new listings, the impact of COVID-19 on the real estate market is now clear, although I personally thought it could have been worse,” remarked Mike Grady, president and COO at Coldwell Banker Bain.
The Northwest MLS report for April shows area-wide inventory fell nearly 21% from a year ago, dropping from 12,955 listings to 10,282. A comparison of the 23 counties in the report shows only four counties with YOY increases (Jefferson at 0.9%, Whatcom at nearly 6%, Douglas at 13.8% and Lewis at 17.7%), while three counties had shrinkages of around 30% or more (King at -29.6%, Clallam at -32.9% and Island at -39.2%).
The volume of new listings added during April was off 34.7% compared to the same month a year ago. Brokers added 7,641 new listings last month, down from both March when 10,291 new listings were added, and April 2019 when brokers added 11,697 new listings.
Despite the slower activity, the months of supply improved only slightly, rising from the March figure of 1.4 months to 1.75 months of inventory at the end of April.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, described the market as “virtually sold out everywhere locally in the more affordable and mid-price ranges.” Commenting on the local market, he said, “We are seeing buyer demand coming forward. With historically low-interest rates, the local market needs additional listings to meet pent-up demand from the backlog of buyers,” he stated.
“We continue to see a shortage of inventory, along with multiple offers on newly listed homes, and we still have a backlog of buyers who line up (virtually) to view new listings,” reported Frank Wilson, branch managing broker at Kitsap regional manager at John L. Scott Real Estate. “With exceptionally low-interest rates, there is no change in sight,” he suggested.
Gary O’Leyar, designated broker/owner at Berkshire Hathaway HomeServices Signature Properties, reported seeing “only a slight increase in average market time for some listings,” along with “instances of multiple offers.” Acknowledging it was anyone’s guess as to how the March 25 “Stay Home, Stay Healthy” orders would play out, he suggested the Greater Seattle real estate market “continued to show its fundamental strength in April.”
In comparing April to March in the tri-county area (King, Pierce and Snohomish counties), economist Gardner noted the total number of active listings rose (up 14,8%), but new listings dropped (down 25.5%), which he said suggests sellers may be waiting until the shelter-in-place order is over. In the same area, home prices were essentially flat, which Gardner said, “This tells me that sellers are having realistic expectations about value and buyers, hoping for deep discounts, are not finding them.”
Wilson agreed, reporting, “We have had quite a few buyers who have come into the market thinking this is a good time to make lower offers on houses, but that is just not the case in Kitsap County.” Northwest MLS figures show the median price for homes and condos that sold last month in Kitsap County rose more than 13% from a year ago, from $349,500 to $395,178.
Another broker in Kitsap County, Frank Leach, broker/owner at RE/MAX Platinum Services in Silverdale, attributed part of that area’s 35% drop in pending sales to COVID-19 restrictions affecting showings. Nevertheless, his analysis showed more than half the sales in Kitsap County were over the asking price. “The market continues to be very competitive,” he stated.
Eight other counties, like Kitsap, reported double-digit jumps in median sales prices compared to a year ago, while four counties had declines.
In King County, prices rose 4% from a year ago, from $625,000 to $650,000. Snohomish County prices were up nearly 6% and Pierce County joined Kitsap with a double-digit gain; prices there increased from $355,000 to $397,750 for a 12% gain.
System-wide, prices were up about 6.4%, rising from the year-ago figure of $424,950 to last month’s figure of $452,030. Year-to-date prices are up nearly 9.3% compared to twelve months ago.
“With peripheral areas still showing price increases higher than the Seattle area core, April’s figures highlight the trend of migration to outer suburban areas, along freeway corridors,” suggested James Young, director at the Washington Center for Real Estate Research (WCRER). He also believes the figures illustrate “a continued preference for lower density areas given the likely persistence of distancing measures in the future. The virus has refocused many potential buyers, especially for those owning high- density properties in Seattle and elsewhere, on more space and less density. It makes social distancing easier!”
Young expects the trend of households moving to outer counties will likely accelerate in the coming weeks. “Older households in Seattle and other urban centers will be attracted to lower density areas because it is easier to maintain social distance while possibly gaining more space at a lower price point. As long as older householders in urban areas are able to sell, other counties will continue to see increased prices,” he stated.
Changes in lending practices could influence activity according to some market watchers, including Young. “The biggest factors in mortgage markets are first-time buyers, who may not qualify under new criteria, and jumbo markets,” he remarked.
Broker Dean Rebhuhn, the owner at Village Homes and Properties, also commented on shifts in financing. “When the pandemic struck, fear came to play with sales under contract. Buyers became concerned, banks became concerned, appraisers became concerned,” according to Rebhuhn. Some buyers terminated their transactions, in some cases even forfeiting deposits. Nationwide lenders tightened their policies, he noted adding, “Jumbo loans became much harder to obtain, as did home equity loans and refinances.”
Rebhuhn said noticeable changes occurred in mid-April. “New lenders saw opportunities in the market- place and filled the space left by the national lenders. Sellers and buyers became more active,” he reported, adding, “It is amazing how resilient the real estate market has become in the face of the new normal.”
Other representatives from Northwest MLS echoed comments by Rebhuhn.
“Buyers are relying more and more on technology and tools to allow for virtual open houses and viewings. Social distancing, face masks, showings by appointment only and only two people in a home at a time with one of them being the broker are the new norm,” stated Wilson. Like WCRER’s Young, he said he could imagine homeowners wanting to change their living conditions to accommodate for more room or more outdoor space. “This could well cause a shift in what buyers are looking for in the future.”
Leach also reported, “Buyers in Kitsap County are very active on the internet and are checking out properties the minute they go on the market,” with corresponding surges in activity at title companies and by lenders. “Virtual tours are getting a lot of attention.” He said homebuilders “are ready to go full steam ahead.”
Grady also observed upticks in activity and optimism. In tracking their company numbers since March 29, he said they’ve averaged about a 10% increase in production (new listings, new transactions, and closed sales) in each subsequent week. He expects activity will continue to increase throughout May and June, which he says, “speaks to a market that is slowly adjusting to new ways of operating.”
“Optimism is rising,” Grady reported. “We have seen a drastic increase in views of virtual tours.” He also believes consumers are gaining confidence around safety measures for touring homes and as brokers become more adept at hosting live stream open houses. “Buyers are utilizing virtual technology, electronic signatures, and remote online notary processes for closing. All in all, we’re getting through this together,” he proclaimed, adding, “We are truly fortunate to live in a region that has navigated this crisis as adeptly as possible.”
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-05-16T10:07:00-07:002020-05-16T10:19:39-07:00Matthew Lahtitag:pnwr.com,2012-09-20:3435Northwest MLS report for March shows initial disruptions from coronavirus pandemicKIRKLAND, Washington (April 6, 2020) – Like many sectors of the economy, residential real estate is experiencing disruption and uncertainty just when the vigorous spring market was ramping up. Not surprisingly, the March activity report from Northwest Multiple Listing Service, which covers 23 counties across Washington state, was mixed as guidelines affecting how brokers conduct business evolved.
Housing activity around Western Washington in March showed the volume of new listings added during the month surpassed February’s total, as did both pending and closed sales. Year-over-year prices increased. However, commenting on the latest report, Northwest MLS brokers emphasized the numbers do not yet reflect the impact the coronavirus pandemic is having on local real estate.
“We expect that all numbers will decline in April and May as a direct result of the governor’s “Stay Home” order that became effective on March 26,” stated Mike Grady, president, and COO at Coldwell Banker Bain. He also expects April and May will be “bridge months” before the market returns to a “more normal” activity level, “assuming we all abide by Governor Jay Inslee’s directives.”
Windermere Chief Economist Matthew Gardner described the numbers for March as “essentially irrelevant given the fact that the economy went into freefall during the month.” He also noted that for a period, real estate was not considered to be an essential service, which he said: “suggests that April’s numbers will also not be an accurate representation of the market.”
“The local real estate market experienced a bit of turbulence in late March as the coronavirus crisis evolved,” reported J. Lennox Scott, chairman, and CEO of John L. Scott Real Estate. “Following statewide orders, the market virtually paused for a few days, but began picking up after real estate guidelines were adjusted to support social distancing,” he remarked.
Note to editors: On March 17, in accordance with an emergency declaration by Gov. Inslee limiting the size of public gatherings, Northwest MLS announced it was temporarily disabling the public and broker open house features in the MLS system. Following modifications made on March 28, brokers were urged to restrict in-person engagements and advised that limited personal interactions to show properties when necessary were permitted by appointment only with no more than two people, including the broker. Additionally, those two persons must strictly follow the CDC (Centers for Disease Control and Prevention) social distancing guidelines. NWMLS provides ongoing updates to its members that emphasize balancing housing needs with the industry’s paramount concerns for the safety of the public and preventing the spread of the virus.
“As our real estate industry has adapted to the evolving waves rippling from the COVID-19 pandemic, the response from the agents in my office has been to go slow,” stated NWMLS board chairman Robb Wasser, branch manager at Windermere Real Estate/East in Bellevue. “While we have been given the latitude necessary to help clients in pending transactions get to the finish line, the recent revision from the Governor’s Office allowing agents to show homes has been met with significant caution and care within my office,” he added.
“The ability to transact business at all has been facilitated and allowed with tight restrictions and major concerns,” stated Dick Beeson, managing broker at RE/MAX Northwest Realtors in Gig Harbor. “Like Interstate 5, if there’s an accident ahead, you creep along as you pass by it. The market is not totally stopped, but around half the business is on hold. And we’re creeping along right now.”
Despite limitations, Northwest MLS brokers added 10,291 new listings to the database during March, outgaining February by 2,505 listings (up 31.2%) and nearly matching the year-ago number (10,516). At the end of March, there were 9,418 active listings in the NWMLS database, a drop of nearly 22% from twelve months ago, but a gain of 23% from February. Area-wide, there was 1.4 months of supply, but it ranged from less than a month in both Snohomish and Thurston counties to more than nine months in San Juan County.
“I am enthused by the strong number of new listings and new sales,” stated Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. “With low-interest rates and more technology jobs, residential housing inventory will remain low and demand high,” he added. He also noted a statement by an economist at a major bank who expects demand for single-family homes will remain high “as buyers will not want to be jammed together.”
Pending sales (mutually accepted offers) slowed during March, dropping about 13.5% from a year ago. Brokers reported 8,880 pending sales during the month, which compares to 10,261 for the same month a year ago. Compared to February, pendings rose by 525 transactions.
“Many buyers and sellers’ real estate needs continued despite coronavirus concerns,” reported NWMLS director John Deely. He said pressure from the short supply of listings dropped off as the “Stay Home, Stay Healthy” order was implemented, but buyers who previewed and pre-inspected properties before the order made offers in a climate of less competition. “Buyers found an opportunity to insert more standard and normal conditions in their offers, reminiscent of a slower, balanced market,” stated Deely, principal managing broker at Coldwell Banker Bain in Seattle.
“COVID-19 has put a new wrinkle in the Northwest real estate food chain. That wrinkle has produced fewer pending sales and fewer homes coming on the market, and that means buyers are taking more time to make decisions in this new environment,” said Beeson. “It also means sellers, for the first time in a long time, don’t have instantaneous offers and must exercise patience, too.”
Contrary to some areas, activity in Kitsap County has been quite brisk, according to Frank Leach, broker/owner of RE/MAX Platinum Services in Silverdale. Brokers added 516 new listings during March for an increase of 10.7% from a year ago. Compared to February, new listing activity surged 52.7%. “Inventory has increased over the past few weeks,” reported Leach, a member of the NWMLS board of directors. With 1.3 months of supply, there’s a “very competitive market in all price ranges,” he added
Leach is optimistic about how Kitsap County will fare as the COVID-19 crisis continues. “Kitsap’s unemployment rate remains relatively low with many businesses looking for employees. While we anticipate unemployment claims to spike, Kitsap will likely be on the lower end of the scale compared to most counties due to its diversity of jobs and the large government sector that works and resides here.”
Kitsap County’s number of closed sales fell 2.8% during March, one of 10 counties to report year-over-year drops. Within the Puget Sound region, only King County reported a gain; closed sales there were up about 7% from a year ago, with condo closings surging more than 20%. System-wide, closings were nearly even with a year ago (6,735 versus 6,750), a reflection of strong activity at the start of the year.
Median prices on last month’s completed transactions rose 10.3% from a year ago, increasing from $415,950 to $458,900. Only two counties (San Juan and Ferry) reported year-over-year price drops.
Northwest MLS representatives were generally upbeat about the adjustments being made and the prospects for recovering as brokers navigate through the crisis, although one broker noted the high-end market has been affected in a negative way.
“Some lenders pulled back from the market and more so in the upper-end price range jumbo market,” Deely reported. “One lender pulled funding on fully approved jumbo loans only days from closing, leaving buyers unable to perform,” he explained, adding, “The luxury market has had a distinct drop in showing traffic as compared to other price ranges.” He also said the use of virtual showings and web site viewings “are experiencing record traffic as potential buyers utilize today’s advanced, remote viewing tools.”
“The good news is that it’s a great time now for both buyers and sellers,” said Grady. “Buyers have access to extremely low-interest rates and those sellers in the market are motivated,” he explained. “For sellers, the continued low inventory and expected slowing of new listings over the next few weeks means their homes can be seen now like never before.”
Lennox Scott agreed. “With social distancing guidelines in place, buyers and sellers can take advantage of historically low-interest rates in the mid-threes. With inventory shortages in many price ranges, the focus remains on each new listing. Though our business practices have adjusted, we’re seeing sales activity starting to pick back up.”
“The Puget Sound was in a strong position when COVID-19 hit and will be set to flourish again once this situation has passed,” suggested Gardner, adding, “Mortgage rates have been making some unusual moves over the past few weeks and are highly likely to retest historic lows in the next few months.”
“Real estate professionals across all markets have stepped to the plate providing resources to their clients and the public at large in a time when there is so much noise and misinformation,” noted Leach.
Veteran broker Gary O’Leyar said he has not seen anything comparable to what is currently taking place during his 45 years in real estate, but he noted there is a historical precedent. “During the Great Depression, real estate values only fluctuated by about 7% while the stock market crashed,” stated O’Leyar, the designated broker/owner at Berkshire Hathaway HomeServices Signature Properties.
“The Stay Home, Stay Healthy order truly underscores some of the most positive, basic core values and benefits of our region’s real estate,” O’Leyar believes. “Homemade”, “Home Sweet Home”,” Home is Where the Heart Is” and “There’s No Place Like Home” are just a few visceral perks as well, he suggested. “Although the stock market has certainly created and affected great wealth, real estate investment provides tangible value with shelter, comfort, and places to conduct our business enterprises. The inherent benefits and qualities of real estate ensure long-range value and provide tangible proof of its place in our economy as an alternative gold standard.”
Information and statistics compiled and reported by the Northwest Multiple Listing Service.
Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers.
2020-04-14T09:07:00-07:002020-04-14T09:25:57-07:00Matthew Lahti