Real estate brokers around Washington state say the market is moving in a positive direction with the spring market \u201cfinally showing up in March.\u201d<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
\u201cFrom February to March, key indicators, including new and active listings, pending sales and closed sales are trending upward,\u201d noted John Deely, executive vice president of operations at Coldwell Banker Bain. Areawide prices have also increased since January, up nearly 5.9%.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Said Deely, \u201cDespite 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.\u201d<\/p>\n\n\n\n
\u201cWith interest rates dropping and less competition overall, people who have been sitting on the sidelines are jumping back into the market,\u201d reported Deely.<\/p>\n\n\n\n
\u201cBuyers are out in droves right now looking for reasonably priced homes,\u201d according to Frank Leach, broker\/owner at RE\/MAX Platinum Services in Silverdale. \u201cOpen house activity is up and we continue to see multiple offers on well-priced homes, with seller concessions starting to wane,\u201d he stated.<\/p>\n\n\n\n
NWMLS figures show prices in Kitsap County are up 4.7% since January. \u201cThe market is hitting an equilibrium,\u201d he suggested. He also reported an increase in contingent sales where sellers must sell in order to buy their next home.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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\u2019s 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.<\/p>\n\n\n\n
Three counties \u2013 Pierce, Snohomish and Thurston \u2013 all had less than one month of supply.<\/p>\n\n\n\n
\u201cWe are experiencing a frenzied spring housing market,\u201d remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. \u201cAlthough fewer new listings are coming on the market and fewer overall transactions, the market is following a typical seasonal pattern,\u201d he added, noting he expects to see increases in new listings over the coming months. \u201cThe luxury market is seeing strong buyer activity,\u201d Scott also reported.<\/p>\n\n\n\n
Windermere Chief Economist Matthew Gardner also commented on the uptick in activity. \u201cThe spring housing market, which usually kicks off in February, finally showed up in March when new listings increased by significant numbers, month over month.\u201d<\/p>\n\n\n\n
\u201cWhile 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),\u201d Gardner observed.<\/p>\n\n\n\n
Commenting on prices, Gardner said, \u201cDespite 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.\u201d<\/p>\n\n\n\n
Dean Rebhuhn, owner of Village Homes and Properties in Woodinville, said March had \u201cgood sales activity on well-priced homes.\u201d He believes interest rates are not the deciding factor in purchases. It\u2019s prices, he suggests, proclaiming, \u201cThe spring real estate market is good!\u201d<\/p>\n\n\n\n
Pending sales jumped more than 14.5% from February, rising from 6,230 mutually accepted offers to last month\u2019s 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.<\/p>\n\n\n\n
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). \u201cEven with some tech firms trimming their workforce, other employers are hiring in high demand areas.\u201d<\/p>\n\n\n\n
\u201cAll signs point toward a rather unusual market through the end of 2023,\u201d reported Dick Beeson, managing broker at RE\/MAX Northwest in Tacoma\/Gig Harbor. \u201cLowering prices, lowering interest rates, and longer days on the market signal some of the unpredictability of the current market.\u201d<\/p>\n\n\n\n
Beeson said buyers want to buy now because they see modest reductions in prices and rates. \u201cSellers want to sell now before prices fall even further and there\u2019s less competition,\u201d he stated, adding, \u201cThere\u2019s a paradox not seen in prior markets where low inventory generally brings higher prices.\u201d<\/p>\n\n\n\n
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:<\/p>\n\n\n\n
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%.<\/p>\n\n\n\n
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, \u201cWhen 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.\u201d<\/p>\n\n\n\n
Leach said fluctuating interest rates are causing some would-be homebuyers to wonder \u201cif we\u2019ll ever see rates as low as they were \u2013 unlikely!\u201d He noted in the early \u201880s rates went from 9% to over 18%, \u201cand 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.\u201d<\/p>\n\n\n\n
\u201cWe may see more creative financing,\u201d Leach said, adding, \u201cWe already see a lot of loan programs that all but disappeared now reappearing in this market.\u201d<\/p>\n\n\n\n
Sam Khater, Freddie Mac\u2019s 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%.<\/p>\n\n\n\n
\u201cOver 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,\u201d Khater said.<\/p>\n\n\n\n
Chief economist Danielle Hale at Realtor.com agreed. \u201cAmid 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.\u201d <\/p>\n\n\n\n
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