Brokers report some good news for home buyers, but still expect Puget Sound’s “frantic market” to continue

Source: NWMLS

KIRKLAND, Washington (May 7, 2018) – Home buyers may be cheered by an uptick in inventory, but the
improving supply is unlikely to reverse rising prices, suggest industry leaders from Northwest Multiple
Listing Service.

Commenting on just-released figures for April, which showed the highest level of active listings since
August, OB Jacobi, president of Windermere Real Estate said, “For the first time in a long time we had
good news for buyers.” Noting supply is still lower than year-ago levels (down 5.6 percent), it jumped 14
percent from March, which Jacobi said “is a pretty significant increase even for this time of year.”

Northwest MLS brokers added 11,271 new listings to inventory during April, a gain of 6.3 percent when
compared to March, and up nearly 5.9 percent versus a year ago. April’s pending sales (mutually accepted
offers) totaled 10,574, improving on the same month a year ago and the previous month.

At month end, the active listings selection included 10,079 single family homes and condos, eclipsing the
total of 8,825 listings at the end of March. The condo segment grew 10.9 percent from March.

Of the 23 counties in the Northwest MLS service area, only six of them reported year-over-year gains in
inventory compared to a year ago. King County was the only one in the Puget Sound region to notch a gain,
up 13.6 percent from a year ago.

Commenting on the uptick, Mike Grady, president and COO, Coldwell Banker Bain, remarked “We are
still WAY below a balanced market of five months of inventory, and this is even with interest rates ticking
slightly upward.”

Area-wide there is 1.3 months of supply, with 4-to-6 months used as a gauge of a balanced market. Three
counties – King, Kitsap, and Snohomish — reported less than a month of supply. The condo component
remains very tight with slightly more than three weeks (0.87 months) of supply.

Prices are still climbing at double-digit rates in most counties. Year-over-year prices for single family
homes and condos combined jumped about 15.3 percent overall, from $360,000 to $415,000. Within the
four-county Puget Sound region, King County notched the biggest gain at nearly 18.2 percent. Prices there
rose $100,000 from a year ago, from $550,000 to $650,000.

“There’s little reason to think we’ll be seeing a change in this frantic market anytime soon,” commented
Grady, citing double-digit appreciation in many of the most populous counties, expansion plans by Alaska
Airlines and Amazon, and other positive economic news as reasons for that expectation.

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