The supply of available homes remains at critical levels, with both King and Snohomish counties showing less than a month’s supply of inventory. With demand far outstripping supply, home prices increased by double-digits over last year throughout the Puget Sound area. The red hot market allows sellers to call the shots. Since some sellers are hesitant to put their home on the market for fear they won’t be able to find their next home quickly enough, many are negotiating with buyers to stay in their house for several months after the sale to ease the transition.
EastsideEastside home prices were up 17 percent over last March to $739,440. That price was unchanged from February of this year. Inventory, which traditionally increases in the spring, continued to shrink. With under a month’s supply of properties on the market, homes at every price point are selling quickly and often with multiple offers.
King CountyAfter breaking records in February, home prices hit a new high in March. The median price of a single-family home soared to $531,250, a 21 percent increase over the same time last year. Homes are selling within days, and the area has only several weeks of available inventory. Frustrated buyers are waiting for more sellers to take advantage of the jump in prices and put their home on the market.
SeattleA booming economy has drawn many new residents to the Seattle area. The city has the lowest inventory in the region, and that is reflected in home prices. The median price of a single-family home was up 20 percent over last March to $640,000. That was down slightly from the high of $644,950 in February.
Snohomish CountyAfter posting more moderate gains than King County so far this year, Snohomish County home prices jumped 13 percent over last March. The median price for a single-family home climbed to $385,000. With buyers increasingly looking to the area for more affordable home options, inventory has shrunk to historic lows. Multiple offers are now the norm.
We probably don’t need to tell you that 2015 was a crazy year in real estate, especially in our area. Bidding wars and listings lasting mere days on the market is something we’ve all grown accustomed to. But it turns out we’re not alone. Curbed recently published an article that focused on the 30 most competitive neighborhoods in America. What’s the most mind blowing thing about this list? Of the 30 neighborhoods listed, 13 of them are in King County.
The Eastside was well represented on this list with Bellevue and Redmond making huge claims. Overlake was was the second-most competitive market in the entire nation! Honorable mentions were Grass Lawn (#7), Newport Hills (#14), Idylwood (#28), and Newport (#30).
It’s hard to say exactly what 2016 has in store, but our very own Chief Economist, Matthew Gardner, has a few ideas (such as expecting that housing in Seattle will continue to appreciate in value, but at a slightly lower rate than 2015).
Read more on Seattle Curbed.
The real estate market traditionally cools off in the summer, but August saw a continuation of the market’s hot streak. Home prices increased by double digits over a year ago, fueled by strong demand and the lowest inventory in more than a decade. Rising prices are kindling hopes that more sellers will be willing to put their home on the market.
Home values on the Eastside continue to be the highest in the region. The median price for homes sold in August was up 11 percent to $672,000. Very limited inventory translated into brisk sales as buyers snapped up homes at every price point. A $3.7 million home on Yarrow Point sold in just four days after being listed.
The median price for a single family home in King County was $499,950, a 14 percent increase over last August. Inventory has inched up, but the five weeks of existing supply is far below the three to six months of supply that is considered to be balanced. Condo sales were strong, with 22 percent more sales than a year ago.
Buyers frustrated with high home prices in King County have been drawn to Snohomish County in search of finding more home for their dollar. That demand has driven down inventory, which stands at just under two months of supply. Demand has also pushed prices higher. The median price of a single family home rose 11 percent over a year ago to $366,825.
We’re still having record heat in the Puget Sound region, and our home prices are rising with the thermometer. It’s still a roaring seller’s market out there, especially on the Eastside. We continue to have local markets in dire need of inventory, so this is an excellent time to list your home and take advantage of the current market.
• The months supply of inventory continues to decline from the prior year in Seattle and the Eastside, as well as King and Snohomish counties.
• Closed sales on the Eastside have started to decrease in number due to seasonal trends and lowered inventory.
• The majority of those Eastside closed sales in July sold over original list price.
The Eastside had the highest increase in home sales prices since last July, increasing 9 percent to $681,600. We continue to have the highest median home prices in the region. Inventory had the slightest increase since June's 1.1 months of inventory with July holding 1.2 months (a balanced market reflects 3 to 6 months of inventory). Total closed sales dropped to 932, 3 percent less than July 2014 and 5 percent than last month's 981 total closed sales on the Eastside.
Inventory actually increased for the third month in a row, but was still held at a stark 1.1 months supply. While median sales prices fell 3 percent from the previous month, July's sales prices were still 4 percent higher than the previous year at $485,000. With inventory so low and the county's higher prices, many potential buyers are being pushed farther out than they would have previously wanted to buy.
Snohomish County has increased its median sales price 8 percent since July 2014 to $362,987 last month. It holds a stronger, though less than normal, inventory of 1.5 months. The number of closed sales has increased sharply to 1,156 in July, a 19% increase since the previous year. While many potential buyers are being forced out of the Eastside and the Seattle area, Snohomish County proves to be a less expensive and more promising market.
Along with temperatures, the housing market sizzled in June. Continued low inventory coupled with ever-increasing demand pushed home prices in King County to an all-time high. The multiple offers and escalation clauses that have now become common make it a very hot market for sellers.
• Home prices in King County surpassed their 2007 peak.
• The number of closed sales in King County increased 17 percent over last June.
• Record low inventory continues to fuel competition among buyers.
While sales on the Eastside jumped 23 percent, inventory remains very tight. With very little new construction in the pipeline, low inventory is expected to continue until more sellers are willing to list their homes. An incentive is the continued price appreciation here. The median home price was up 6 percent to $670,000, the highest of any King County region.
There were almost 24 percent fewer homes for sale in June as compared to the same time last year. As a result, competition for homes is fierce, with first-time home buyers competing with foreign buyers and those moving here for new jobs. King County saw the median price of a home soar 10 percent over last June to $500,000 – an all-time high.
One of our favorite days every year is Community Service Day. All of our Windermere offices close so the brokers and staff can spend the day volunteering with local non-profit organizations. This year, our Windermere Bellevue South office will be spending the day helping out Mamma's Hands.
Mamma's Hands was founded to provide hope and support to those in crisis. Their mission is to help those in crisis regain their self-respect, and to provide them the support and direction they need to become productive members of society. Their vision is "Hope in Every Individual." To accomplish this mission, Mamma’s Hands has created two programs: The Phone Home program and the House of Hope program. This year marks their 25th year anniversary of helping those in the Puget Sound area!
Windermere Bellevue South brokers and staff have a lot of work ahead of them. Mamma's Hands has three homes for women and children in crisis on 15 beautiful acres in North Bend, and that's where they'll be for Community Service Day. They'll be helping Mamma's Hands by installing security cameras, staining eves, installing base trim, and installing cabinets and shelving. They'll be building deck railings, roofing the shed, and doing plenty of yard clean-up by weeding, mowing and preparing the flower beds for summer. It should be a great day to accomplish a lot!
Continued strong demand has pushed home prices in King County over their 2007 peak. Faced with record low inventory and anxiety about rising interest rates, buyers are snapping up homes as soon as they come on the market. What is tough news for buyers is a boon for sellers. A recent analysis of home sales in King County showed that 41 percent sold for over list price. • Both closed sales and pending sales (agreements that have been signed but not yet closed) in King County were up by double digits over last March. • Home prices continued their steady rise. • April was the sixth consecutive month of record-low inventory.
EastsideBoth home sales and home prices on the Eastside rose in April. The number of closed sales were up by 15 percent over last year. The median price of a single family home was up 6 percent to $654,650. Stiff competition for homes was exacerbated by lack of inventory, with just one month supply available.
King CountyApril was the second month in a row that King County had less than one month of available inventory. (A supply of three to six months is considered balanced.) The number of closed sales climbed 17 percent over the same time last year. The median price of a single family home in King County rose 11 percent over last year to $480,000.
See the original article on the Windermere Eastside blog.