Buyers getting “some relief” as key indicators point to strong summer for housing market

Source: NWMLS
KIRKLAND, Washington (July 8, 2019) – Inventory, pending sales and prices all increased during June
compared to a year ago, according to the latest report from Northwest Multiple Listing Service. The same
report, which covers 23 counties in Washington state, shows year-over-year drops area-wide in both the
volume of new listings and closed sales.


“Clearly we now see that the market is moderating – that is we’re definitely moving from a ‘hyper-
market’ to one where a correction is underway compared to last year,” remarked Mike Grady, president
and COO of Coldwell Banker Bain. “While it’s the best time to buy that we’ve seen in some time, and
buyers are getting some relief, it is still a seller’s market,” he added, noting some buyers are experiencing
multiple offer situations, or considering inspection waivers, or are even forced to consider markets outside
King County for affordability.


Three Northwest MLS directors from Pierce and Kitsap counties suggest their counties are attracting
some of the frustrated buyers from King County.


“The darling of the Puget Sound real estate market is Tacoma/Pierce County,” stated Dick Beeson,
principal managing broker at RE/MAX Northwest Realtors in Gig Harbor, pointing to low inventory and
appreciating values. “The secret is out about Pierce County,” agreed Mike Larson, the president at
ALLEN Realtors in Lakewood. “You can buy twice the house for about half the price. You just have to
be willing to deal with the traffic if you work north or south of here,” he proclaimed.


“The Kitsap market continues to be robust and is maintaining its velocity in sales,” added Frank C. Leach,
broker/owner at RE/MAX Platinum Services in Silverdale. He believes Kitsap County will continue to be
strong given its economic foundation together with its affordability factor and quick access to Seattle, but
noted it is constrained by available inventory (currently at 1.4 months of supply).


MLS figures show the median price for single family homes and condos that sold last month in King
County was $637,675. In Pierce County it was $372,500, about 58 percent of the King County price, and
in Kitsap County it was $387,000, about 60 percent of the sales price in King County.


System-wide prices increased more than 3.5 percent from a year ago, from $425,000 to $440,000,
although four counties registered declines, including Douglas, Ferry, Jefferson, and King. June’s median
price was unchanged from May.


At midyear, the overall median price was $424,517, which compares to $405,000 for the first six months
of 2018, an increase of 4.82 percent.


“As long as interest rates stay low and people seek value outside of King and Snohomish counties, house
prices should continue their upward momentum,” stated James Young, director of the Washington Center
for Real Estate Research (WCRER) at the University of Washington.

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