Hot, hot, hot!

MLS figures show there is only 1.76 months of supply system-wide. In both King and Snohomish counties, there is barely more than one month of supply – well below the 4-to-6 months that many experts use as an indicator of a balanced market.

Even though brokers say paltry inventory is limiting sales, the year-over-year volume of pending sales rose more than 7.4 percent last month. Members reported 12,275 mutually accepted offers, up from the year-ago total of 11,425. MLS data going back to 2004 shows that one-month total is the highest on record.

Prices also rose. The median price area-wide for last month’s 8,630 closed sales of single family homes and condominiums (combined) was $339,950. That’s up more than 7.2 percent from twelve months ago when purchasers paid $317,000 for the median-priced home. Ten counties reported double-digit price hikes.

In King County, the median price jumped more than 11.7 percent, from $434,000 to $485,000. Prices on single family homes surged nearly 16.5 percent, rising from $480,942 to $560,000. Condo prices were up 9 percent, but finding one proved challenging as inventory dropped 29 percent in King County.

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Housing Market Slowdown

Housing market slowdown expected, but prices in most areas are still rising
KIRKLAND, Washington (October 5, 2015) – Scarce inventory, new rules for mortgage closings and affordability concerns will likely slow home sales around Western Washington during the remaining months of 2015 and into early 2016, according to spokespersons from Northwest Multiple Listing Service.

The latest statistics from the MLS show a double-digit drop in inventory, a double-digit jump in closed sales, and a near double-digit increase in prices from a year ago, prompting some industry leaders to consider the trends aren’t sustainable.

Despite an expected slowdown, closed sales through the first nine months of this year are running 16.6 percent ahead of the same period a year ago, with median prices up 9.2 percent.

The MLS report for September shows pending sales continue to outnumber new listings, resulting in inventory declines in most of the 23 counties in its service area. That imbalance leads to rising prices.

Northwest MLS members reported 9,574 pending sales (mutually accepted offers) in September for a 7.9 percent increase from the year-ago figure of 8,875.

Compared to the system-wide gain, prices rose at more modest rates in three of the four counties in the Puget Sound region, with Pierce County being the exception. Year-over-year prices there jumped 11 percent. Prices in Kitsap County were up only 4 percent from a year ago; in King County the gain was about 4.8 percent and in Snohomish County it was about 7.5 percent.

Single family homes in King County commanded the highest median price at $490,250, up 6.6 percent from the year-ago figure of $460,000, but down from June’s high of $500,000.

For September, the MLS reported 2.39 months of supply system-wide, about the same as the figure for August. The shortages were most acute in King County, with about 1.4 months of supply, and Snohomish County, with about 1.9 of a balanced market.

What does the future hold for the Seattle housing market, if this pace is not sustainable? Will Sellers be willing to put more inventory on the market as housing prices increase? Will Buyers decide to keep renting for now? What happens to the market as interest rates are expected to rise?

What do you think, dear Readers?

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House Sales Slowing Over Last Year

Today, the Northwest Multiple Listing Service (NWMLS) just released its market report for April 2014. The figures show that inventory is still tight, with only 1.74 months of inventory in King County. This makes a "Sellers market," as a more balanced market would have four - six months of inventory.

However, in April 2013 there was only 1.55 months of inventory in King County on the NWMLS. So the length of time it takes to sell a residential property has increased slightly.

Currently there are 4511 active listings in King County, with 3797 pending sales. The median price in King County of both condos and single family houses is $386,000. Overall, the median sales price of single family homes and condos on the NWMLS increased 1.9% over last year.

However, pending sales in King County are showing a 2-8% month-to-month decrease from their level in 2013.

For a free copy of the April 2014 NWMLS Market Report, please contact Wendy Ceccherelli at HomeLandInvestment@gmail.com or leave a message on our 24/7 recorded real estate hotline, 888-621-4999.

Happy Investing!