{"id":1488,"date":"2020-08-14T07:23:26","date_gmt":"2020-08-14T07:23:26","guid":{"rendered":"https:\/\/www.nwmls.com\/opportunities-abound-for-home-buyers-and-sellers-but-brokers-say-dont-delay\/"},"modified":"2023-08-29T10:12:13","modified_gmt":"2023-08-29T17:12:13","slug":"opportunities-abound-for-home-buyers-and-sellers-but-brokers-say-dont-delay","status":"publish","type":"post","link":"https:\/\/www.nwmls.com\/opportunities-abound-for-home-buyers-and-sellers-but-brokers-say-dont-delay\/","title":{"rendered":"Opportunities abound for home buyers and sellers, but brokers say “don’t delay”"},"content":{"rendered":"\n

KIRKLAND, 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.<\/p>\n\n\n\n

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).<\/p>\n\n\n\n

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).<\/p>\n\n\n\n

\u201cOpportunities abound for both buyers and sellers if they\u2019re willing to act quickly,\u201d 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 \u201cat an incredible rate of 2.25%!\u201d<\/p>\n\n\n\n

Conversely, Grady acknowledged, depleted inventory means \u201cWe are seeing multiple offers in just about every market and at every price point.\u201d He estimates there is only about 24 days of inventory in the major population centers in King, Kitsap, Pierce, and Snohomish counties.<\/p>\n\n\n\n

\u201cWe\u2019ve seen an uptick in the number of listings in King and Snohomish counties, but it\u2019s still well below what we need to meet the volume of buyers right now,\u201d emphasized Matthew Gardner, chief economist at Windermere Real Estate.<\/p>\n\n\n\n

NWMLS director John Deely characterized the market as being in \u201chigh gear\u201d during July, with pent-up demand and the need for housing outweighing fears of the coronavirus. \u201cAlthough 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,\u201d he remarked. \u201cSingle family listings priced at or below market are receiving multiple offers with one recent Seattle listing attracting 40 offers,\u201d reported Deely, the principal managing broker at Coldwell Bank Bain in Seattle.<\/p>\n\n\n\n

\u201cI 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 \u2013 particularly first-timers. It\u2019s the fear of missing out,\u201d stated Mike Larson, president\/designated broker at ALLEN Realtors and a director at NWMLS.<\/p>\n\n\n\n

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noted that last month\u2019s pending sales in King, Snohomish, Pierce and Kitsap Counties were the best-ever for the month of July. \u201cSellers 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\u2019s a multiple-offer everything,\u201d he exclaimed, saying, \u201cThis is a historic moment in residential real estate.\u201d<\/p>\n\n\n\n

An unprecedented eight counties in the NWMLS report had less than one month\u2019s supply of homes and condominiums for sale at the end of July. They included Clark, Cowlitz, Island, Kitsap, Mason, Pierce, Snohomish, and Thurston.<\/p>\n\n\n\n

\u201cKitsap County continues to be attractive to East Puget Sound buyers as well as stay-at-home professionals,\u201d 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. \u201cHigh speed internet access has become a definite selling point for many homes and building sites,\u201d stated Leach, who also serves as a director at NWMLS.<\/p>\n\n\n\n

Leach noted July\u2019s 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). \u201cAs market demand continues, the median value jumped 11.7% from a year ago.\u201d MLS figures show the median price on that county\u2019s single family home sales rose from $383,500 to $428,193. \u201cBuyers 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.\u201d<\/p>\n\n\n\n

\u201cSuburban lifestyle continues to draw buyers,\u201d agreed Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. \u201cJuly 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,\u201d he observed.<\/p>\n\n\n\n

Economist Gardner suggested the double-digit home price growth in Pierce County \u201cmight point to the theory that there\u2019s a COVID-induced flight from more urban markets,\u201d adding, \u201cThis also supports my forecast that home prices in Pierce County in 2020 will rise a significant 10.6% compared to 2019.\u201d<\/p>\n\n\n\n

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 \u201cshow that remote work practices are having an effect, and people can now move to more rural areas and work from home.\u201d<\/p>\n\n\n\n

James Young, director at the Washington Center for Real Estate Research, also commented on increased activity in areas outside of King County. \u201cOuter 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.\u201d<\/p>\n\n\n\n

\u201cEveryone is buying now,\u201d Young remarked. \u201cWith the virus and increased home working, people are able to move to suburbs and outer areas in search of value and lower population density,\u201d he added, pointing to dwindling supply in several outlying areas. \u201cDemand will continue to far outstrip supply for a quite a while,\u201d he predicts, adding, \u201cWhen you can work from home, why pay a premium to be close to the office?\u201d<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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\u2019s 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.<\/p>\n\n\n\n

Commenting on prices, Deely said properties with aggressive (over-market) pricing \u201care sitting idle as the current pool of savvy buyers waits for price reductions or for properly priced, new listings.\u201d<\/p>\n\n\n\n

“July was great month,\u201d Grady concluded. \u201cThe trend we\u2019re seeing foretells stronger results going forward for the next three months, especially in the context of the slowdown we experienced in April and May.\u201d<\/p>\n\n\n\n

Scott agreed but expects robust activity to continue for a longer period. \u201cWe anticipate the market will remain this way until at least April 2021. At that time, we believe normal seasonal patterns will emerge.\u201d<\/p>\n\n\n\n

Leach reported builders are frustrated at not having the inventory to meet current demand and \u201ctradespeople are strained to meet the construction needs.\u201d He also noted more and more buyers are making buying decisions based on virtual tours and cautioned buyers, \u201cIf you see something that piques your interest, don\u2019t delay!\u201d<\/p>\n\n\n\n

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About Northwest Multiple Listing Service<\/strong><\/p>\n\n\n\n

As the leading resource for the region\u2019s residential real estate industry, NWMLS provides valuable products and services, superior member support, and the most trusted, current residential property and listing information for real estate professionals. NWMLS is a broker-owned, not-for-profit organization with more than 2,500 member offices and 30,000+ real estate brokers in Washington state and Oregon. NWMLS operates regional service centers throughout its coverage area, providing dedicated support to its members and fostering a robust, cooperative brokerage environment.<\/em><\/em><\/p>\n\n\n\n

NWMLS offers a home listing search and comprehensive broker database at<\/em> https:\/\/www.nwmls.com<\/a>.<\/em><\/strong><\/p>\n<\/div><\/div>\n\n\n\n

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