Tag Archives: markets

NWMLS brokers report brisk activity, noting “too early to tell” if coronavirus will soften sales

Source: NWMLS

KIRKLAND,Washington (March 5, 2020)

“We’re entering prime time for the real estate market, and more listings are on the way,” stated industry veteran J. Lennox Scott, as he reviewed the latest statistical report from Northwest Multiple Listing Service. MLS figures for February show year-over-year (YOY) gains in new listings, pending sales, closed sales, and prices. Scott, the chairman and CEO of John L. Scott Real Estate,expects a bump-up in inventory during March and April, but said, “We remain virtually sold out in many areas in the more affordable and mid-price ranges.”

Northwest MLS representatives who commented on last month’s activity reported little impact so far from the coronavirus (COVID-19) threat.

“It’s still too early to tell if the broadening effects of the coronavirus will sideline buyers,” said Matthew Gardner, chief economist at Windermere Real Estate. “What we do know is that news of the virus led equity markets sharply lower and this caused mortgage rates to drop significantly. Therefore, the question is whether buyers will put their search on hold until the virus has abated, or if they will decide to move forward so they don’t miss out on near historic low mortgage rates,” he added.

David Maider, broker/owner at Windermere Real Estate/M2 in Everett, agreed with Gardner. “It remains to be seen if the coronavirus scare will have any impact at all on the local real estate market other than to lower interest rates,” he stated.

“While the news is full of COVID-19, the stock market correction, and an unexpected interest rate cut that didn’t impress Wall Street, the Puget Sound region’s real estate market continues to stand strong,” stated Mike Grady, president and COO at Coldwell Banker Bain in Bellevue. “Our agents aren’t yet seeing any impact on open house attendance due to the COVID-19 outbreak. We continue to be bullish on the Puget Sound economy and real estate market.”

“I haven’t noticed any decrease in open house activity or in sellers being reluctant to have buyers view their home,” reported NWMLS director Mike Larson, the designated broker at ALLEN Realtors in Lakewood. “Short term, the coronavirus outbreak has resulted in investors turning to the bond market, which means lower interest rates and more buying power. Long-term, this virus could start to wear on overall consumer confidence, which is never good for real estate markets.”

“Historically low interest rates should help the housing market sustain strong momentum during the coronavirus outbreak,” according to Scott.

Member-brokers added 7,786 new listings to the MLS database during February. That was a jump of nearly25% from the same month a year ago when record snow hindered activity. Compared to January, last month’s inventory improved by 1,269 listings for a gain of nearly 19.5%.

February’s new listings (7,786) were the highest since October, but they fell short of matching demand. Brokers reported 8,355 pending sales (mutually accepted offers) for a YOY gain of more than 21%.

Inventory remained tight. At month end,there were 7,655 active listings in the 23 counties included in the MLS report. That was a 32% drop from the year ago total of 11,275. All but two counties (San Juan and Douglas) reported declines. Thurston County had the largest year-over-year drop, at 45.7%, followed by Snohomish (down 42%) and King (down 40.7%).

There is only 1.45 months of supply area-wide, according to Northwest MLS data. It is even more sparse in the four-county Puget Sound region where there is barely over a month’s supply (1.1 months). Snohomish and Thurston counties had the distinction of having the sparsest inventory, with both areas reporting less than a month (0.93)of supply.

“The Snohomish County housing market continued on a torrent pace during February,” said NWMLS director David Maider. Low inventory, a return to historically low interest rates, and plenty of buyer demand are stimulating the activity, according to Maider, owner/broker at Windermere Real Estate M2 in Everett. In many cases, sellers are receiving multiple offers exceeding the asking price, he added.

“The spring market has arrived,” exclaimed Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. Multiple offers are normal in hot market areas, and many buyers are having pre-inspections before making offers to sellers, according to Rebhuhn. He said buyers are taking advantage of historically low interest rates and low down payment programs such as FHA with 3.5% down, zero down VA, and low down conventional mortgages.

Current listings are attracting brisk activity, stated John Deely, principal managing broker at Coldwell Banker Bain in Seattle. “Almost every new listing has had tremendous showing activity and multiple offers,” he remarked.

Deely described open house activity as “above average.” More than 400 buyers previewed four listings in the past 10 days. A north King County property in the $600,000 price range that was on the market for a week with an offer review on Tuesday had eight offers at $100,000 over the asking price, according to Deely, a member of the Northwest MLS board of directors.

“Ultra-tight inventory is terrific news for sellers, but it creates challenges for buyers, especially move-up buyers who are selling and buying in the same market,” said Larson. “Buyers who need to sell before they buy a different home are experiencing the very real dilemma of either being a contingent buyer, which no seller will even remotely consider, or of possibly being temporarily homeless if their home sells quickly and they can’t find a replacement,” he explained, adding, “Having a broker who can help navigate that terrain is super important.

”Frank Wilson, branch managing broker at John L. Scott in Poulsbo, said buyers’ pent-up demand continues to grow despite “turmoil in the marketplace, stocks riding a roller coaster, falling mortgage interest rates and shrinking inventory.” He noted buyers in Kitsap County have little to choose from with YOY inventory being down about 30%. “At any given open house there is heavy traffic and most new listings that are correctly priced are receiving multiple offers,” Wilson remarked.

Due to the housing shortage in Kitsap County, Wilson said some buyers are turning to alternatives, such as buying land and moving a mobile home onto it or purchasing land with the intent to build a home. “New construction cannot go up fast enough and unless it is already permitted, there would be two years’ worth of studies and permitting before any nails are driven.

”Grady reported similar demand in other areas. “Agents in our Kent Station office recently reported putting homes on the market and receiving multiple offers within three days,” he reported. At a Bellevue listing, more than two dozen couples attended an open house this past weekend.

Brokers say the supply-demand imbalance is contributing to rising prices.

The Northwest MLS report shows the median price system-wide for the 5,265 homes and condos that sold in February rose 9.34% from a year ago, from $407,000 to $445,000. Thirteen counties reported double-digit increases, while four counties had price drops.

“Skagit County continues to outperform, along with other areas immediately outside the Greater Seattle area,”noted James Young, director of the Washington Center for Real Estate Research. Prices in Skagit jumped nearly 27.8%. He also mentioned Kittitas, where prices surged 21.9%. “Price movements now are more like the spring season –it looks like the groundhog was right, spring came early!

”Young also described Kitsap and Thurston counties as outperformers in the Puget Sound region, noting prices rose 16.9% and 13.1%respectively. “This is consistent with recent activity in perimeter areas as home buyers seek value,” he suggested.

Grady said,“While we don’t have a crystal ball for these uncertain times, I continue to believe the indicators and information I’m hearing from agents on the ground support that our market will continue strong.” He believes 2020 will rival 2017 with similar short days on market, tight inventory and in many markets, a return to multiple offers.

Nationally, an editor with realtor.com reported the U.S. housing market is already feeling the effects of what could soon be declared a pandemic. “The already sluggish luxury real estate market has depended in recent years on an injection of Chinese buyers,”wrote Clare Trapasso in her report on coronavirus fears and possible impacts on real estate. She found that fewer Chinese buyers who account for a “significant chunk”of luxury buyers are touring properties in the U.S., thanks in part to the temporary travel ban enacted to prevent the spread of the virus.

“China has been the most important source of foreign demand for real estate,” says Lawrence Yun, chief economist at the National Association of Realtors®. Wealthy Chinese buyers often purchase luxury properties, such as high-rise condos, in California and New York. “The upper-end market can expect to be softer as a result.

“Northwest Multiple Listing Service is a not-for-profit, member-owned organization that facilitates cooperation among its member real estate firms. With more than 2,300 member firm offices and 30,000 brokers across Washington state, NWMLS(www.nwmls.com)is the largest full-service MLS in the Northwest. While based in Kirkland, Washington, its service area spans 23 counties and it operates 20 local service centers. ###For more news, visit nwmls.com and select “News & Information,” (includes latest press release, statistics and Northwest REporter),plus the NWMLSMedia Kit.

Home buyers in Western Washington “hit the ground running” in January

Source: NWMLS

“All indicators point to a vigorous spring market,” suggested broker Dean Rebhuhn when reviewing just-released statistics from Northwest Multiple Listing Service. The report covering 23 counties shows pending sales outgained new listings, record-low inventory that’s down 33% from a year ago, and double-digit price increases.

Matthew Gardner, chief economist at Windermere Real Estate(the largest regional real estate company in the Western U.S.), noted home buyers did not take very much time off during the holidays. “They hit the ground running as soon as the new year kicked off.”(Windermere has 140offices in the NWMLS market area.)

Rebhuhn, the owner of Village Homes and Properties in Woodinville, said new jobs, low interest rates, and lifestyle changes continue to drive the market. “Hot spot markets are experiencing multiple offers,” he reported.

Northwest MLS brokers added 6,517 new listings during January, a year-over-year decline of more than 8%. Pending sales (mutually accepted offers) topped new listing activity by 871 units. Brokers reported 7,388 pending sales last month, a 2.3% decline from the same month a year ago.

“So now we have a three month trend where we’re seeing pending transactions exceeding new listings addedin all major counties in the Puget Sound region,”observed Mike Grady, president and COO of Coldwell Banker Bain. “Inventory continues to decline slowly to barely more than a month’s on hand.

Our brokers are reporting it ‘feels like 2017,’ with multiple offers returning and review dates (where sellers identify a date to review all offers) being added to the mix because of the number of offers they are receiving,” he added.

At the end of January, the MLS database totaled only 7,791 active listings of single family homes and condos, well-below the year-ago figure of 11,687 (down 33.3%).

A check of records dating to 2005 shows the selection is at a new low level, shrinking below the previous low of 7,921 reported for February 2018.In fact, for the 15 year span from 2005-2019 (180 months), inventory has dipped below 10,000 listings during only eightof those months.

Measured by months of supply(the ratio of active listings to closed sales), there was 1.54 months of inventory system-wide at the end of January. The selection was even more meager around Puget Sound, ranging from 1.1 months in Pierce County to about 1.3 months in King County.

“The fever in the real estate market is over the lack of inventory and competition from high buyer demand, not the flu,”said NWMLS board member John Deely, principal managing broker at Coldwell Banker Bain.

Looking at the report for single family homes in King County(excluding condos), he noted the number of active listings is down nearly 44% from a year ago, while closed sales rose more than 7.1%.

The Future of the US Housing Market

Source: Peter DeVries, Loan Depot

This month marks the 11th anniversary of the government takeover of the mortgage giants Fannie Mae and Freddie Mac. Last Thursday, The Trump administration released its long-awaited blueprint to reform the nation’s housing finance system and privatize GSEs Fannie and Freddie.

The plan consists of a series of recommended legislative administrative reforms aimed to create a competitive mortgage market with a limited government role, protect American taxpayers against future bailouts, and help guide Americans toward the path to homeownership.

Whether the government successfully recapitalizes these agencies and ends this conservatorship or not, loanDepot is uniquely and proactively positioned with capital and a world class capital markets team to benefit from any changes that may transpire.

Home Price Trends

  • The CoreLogic HPI Forecast indicates that home prices will increase by 5.4% on a year-over-year basis from July 2019 to July 2020
  • Over a quarter of Millennials have expressed interest in buying a home in the next year
  • Connecticut and South Dakota were the only states to post declines in their year-over-year home prices

The expected reacceleration of home prices over the next year to just over 5% is caused by lower mortgage rates, making it more affordable for millennials to enter the market in the upcoming months. This increased demand for housing is the major driver for higher home prices, which we’ll likely continue to see rise for the foreseeable future.

Source: https://www.corelogic.com/insights-download/home-price-index.aspx

Home Price Trends

Mortgage rates dropped again this week! The 30-year fixed mortgage rate averaged 3.49% for the week ending September 5, a slight drop from 3.58% prior week. By contrast, mortgage rates stood at 4.54% a year ago, almost a full percentage higher than today. The historic low for 30-year rates was 3.31% in November 2012.

If you or your clients are in the market for a purchase or refinance, this fall may be a favorable time to apply for one and save on interest overtime. Don’t forget to ask me about loanDepot’s mello smartloan™ and how it could help enjoy a faster, more secure, stress-free mortgage process.

Source: http://www.freddiemac.com/pmms/

If you have any questions, contact me anytime! I can help your clients explore the best mortgage option for both purchase and refinancing.

Peter DeVries
NMLS# 1156114
Loan Consultant
1025 Black Lake Blvd SW Ste 1C
Olympia, WA 98502-1120
Office: (360) 706-6104
Cell: (360) 791-8064
My Website
Email Me

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.

Homebuyers Resuming Search Amid Improving Inventory, Attractive Terms

Source: NWMLS

KIRKLAND, Washington (February 7, 2019) – Homebuyers around Washington state are making their
way back to the market, hoping to take advantage of improving inventory, attractive interest rates, and
more approachable sellers, according to officials with Northwest Multiple Listing Service.

Northwest MLS statistics for January show year-over-year improvement in the volume of new listings
and total inventory, along with moderating selling prices. Although fewer pending sales (mutually
accepted offers) were reported than a year ago (down about 3.3 percent), January was the smallest year-
over-year decline since May 2018 when the drop was about 2.7 percent.

Commenting on the MLS statistics summarizing last month’s activity, broker Gary O’Leyar said
January’s post-holiday real estate activity doesn’t normally pick up until later in the month, but this year
the uptick began early. “January started as a bit of a surprise. Open house activity was very robust, and we
saw multiple offers in numerous instances again,” reported O’Leyar, the owner of Berkshire Hathaway
HomeServices Signature Properties in Seattle.

Brokers tallied 7,564 pending sales during January, a decline from a year-ago when they recorded 7,820
transactions.

Seven counties had increases in pending sales of single family homes and condos compared with 12
months ago, including King (up nearly 7.5 percent) and Snohomish (up 3.8 percent).

James Young, director of the Washington Center for Real Estate Research at the University of
Washington, commented on pending sales. The mixed results, including “healthy growth” in King and
Snohomish counties, “corresponds well to upward movement in mortgage applications late in December,
a leading indicator for the month to follow,” he noted, adding, “One should expect to see increased sales
activity in the coming months throughout the region if mortgage applications continue to stabilize or
increase.”

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, said buyers “came out of the
woodwork” after the holidays, eager to take advantage of better housing conditions. “Areas close to the
job centers are seeing improved affordability from spring 2018,” he said, attributing it to lower interest
rates, strong job growth, and adjusted pricing.

Scott said buyers are also attracted by expanded inventory resulting from the addition of new listings and
a higher number of unsold inventory, although he noted “inventory levels are still considered a shortage.”
Prospective buyers who sat out the second half of 2018 or were pushed to the sidelines during last year’s
heated market are finding better buying conditions, agreed Robb Wasser, branch manager at Windermere
Real Estate/East. “Interest rates are near a nine month low and buyers have a stronger platform for
negotiating, which have helped drive a 9 percent increase in pending sales of single family homes in King
County,” Wasser stated.

Attentive Home Buyers Can Find “Good Values and Receptive Sellers”

Source: NWMLS

KIRKLAND, Washington (January 7, 2019) – December brought few surprises for real estate brokers in
Western Washington with holidays, fluctuating interest rates, and volatility in consumer confidence
contributing to slower activity. Several leaders from Northwest Multiple Listing Service described 2018
as a transition year for residential real estate.

New data from the MLS show inventory in its 23-county market area dipped below two months of supply
for the first time since July. A year-over-year comparison of the number of new listings, pending sales,
and closed sales show drops overall, while prices rose from the same month a year ago.

Member-brokers added 3,631 new listings of single family homes and condominiums during December
(10.4 percent fewer than a year ago), boosting total active listings to 12,275, up from the year-ago volume
of 8,553. Pending sales were down about 8.4 percent from twelve months ago (5,677 versus 6,198), and
the volume of closed sales dropped nearly 16.6 percent (6,374 versus 7,642).

For 2018, members of Northwest MLS reported completing 92,555 transactions, which compares with
99,345 closed sales during 2017 for a drop of about 6.8 percent. The median price on last year’s closed
sales of single family homes and condominiums combined was $402,000, up $32,000 (8.64 percent) from
2017.

Commenting on inventory, declines in closed sales and the drop in month’s supply, MLS director Dick
Beeson said, “There’s lots of speculation as to the reasons why. One thing for sure: this situation can
make for a deliciously deceptive market for either buyers or sellers.” The veteran Realtor said buyers who
are paying attention will find very good values and receptive sellers.

“Timing the interest rate market is beyond the capability of most everyone. Therefore, buyers should act
now, act deliberately, act decisively, and act in conjunction with an experienced real estate professional,”
advised Beeson, the principal managing broker at RE/MAX Northwest in Gig Harbor.
Brokers said many of last month’s buyers took advantage of the shifting market.

“Buyers in December were reaping the benefits of market-weary sellers who were willing to give up part
of their bloated home equity to make a deal and move on,” reported John Deely, principal managing
broker at Coldwell Banker Bain.

James Young, director of the Washington Center for Real Estate Research at the University of
Washington, noted last month was a very different December from a year ago. “While active listings are
up significantly (43.5 percent) from a year ago, interest rates have also gone up by over 80 basis points,
meaning the typical mortgage repayment has increased by about 10 percent for those looking to buy. That
limits spending power and stops buyers from bidding up for the house they want rather than the house
they can afford.”

Slower Market Means Homebuyers Have “Newfound ability to negotiate”

SOURCE: NWMLS

KIRKLAND, Washington (November 6, 2018) – Seven months of steadily rising housing inventory
reversed course in October when Northwest Multiple Listing Service brokers added the fewest new
listings since February, according to a new report. MLS members believe the onset of wintry weather and
transition to the holiday season are factors, but suggested the slower pace also signals improving
conditions for house-hunters.

“After months of inventory growth that more than quadrupled the number of homes buyers have to
choose from, things got back on a seasonal track with new listings and total supply falling in October,”
said Robert Wasser, a director with Northwest MLS, when comparing those metrics with September.
“Buyers are catching on to their newfound ability to negotiate. For the first time since 2012, closed sales
system-wide rose from September to October,” noted Wasser, a branch manager with Windermere Real
Estate in Bellevue.

Northwest MLS members added 8,865 new listings to inventory last month in the 23 counties it
encompasses, down from September’s volume of 10,458, but up 4.7 percent from the year-ago total of
8,466 new listings. Compared to September, last month’s number of total active listings shrunk nearly 6.7
percent, but year-over-year inventory rose 33.2 percent, from 13,680 to 18,223 offerings.

Brokers generally welcomed the bump-up in inventory.

Real estate veteran Mike Grady, the president and COO of Coldwell Banker Bain, commented on the
current “win-win” conditions. “We’re entering that time of year when historically the market slows a bit
as we head into the holidays. Buyers continue to see an improving market compared to last year with the
inventory increasingly to 2.4 months of supply in King County, compared to the year-ago figure of less
than a month (0.98),” he stated.

Area-wide there is nearly 2.3 months of inventory, slipping from more than 2.5 months in September, and
improving on the year-ago figure of about 1.5 months of supply.

The year-over-year gains in supply, while notable, are still “way off from a balanced market that provides
five to six months of inventory,” Grady remarked, adding, “Contrary to recent media reports, the sky is
not falling,” he emphasized, pointing to rising prices and strong jobs reports as factors for a positive
outlook. (The State Employment Security Department reported Washington gained 4,500 jobs in
September.)

“Home prices in King County are up nearly 8.6 percent year over year, so we’re still experiencing
significant appreciation,” Grady stated. Given continued reports of hiring by companies in the Puget
Sound region and recent increases in inventory, he expects homebuyers will continue entering the market,
adding, “And sellers can still expect to get good prices — all this without the frenzy. A win-win,” he
proclaimed.

A Decade Low in Housing Affordability Won’t Kill the Real Estate Boom

Source: Dr. Steve Sjuggerud, Stansberry Research

I’ve spent years urging anyone who would listen to buy a house…

Folks didn’t want to hear that story back in 2011, when I first began pounding the table. Investors were scared. Nobody wanted to buy.

That’s why housing was such a great deal, though. It was dirt-cheap and hitting all-time levels of affordability.

Plenty has changed since then…

U.S. home prices have steadily climbed, and housing affordability has fallen as a result.

Today, housing affordability is at a decade low. But as I’ll show, that doesn’t mean the boom is dead.

Let me explain…

The idea of housing affordability is simple. When someone buys a home, he doesn’t worry so much about the purchase price… He worries about the monthly payment. If he can afford the payment, he can afford the house.

The monthly payment includes a few numbers… namely the home’s price and the interest rate. Compare that with the person’s income, and you know how affordable (or not) a home would be.

Importantly, these numbers are similar for a lot of folks. So the National Association of Realtors uses median home prices, median income, and mortgage rates to build an overall measure of housing affordability in America.

This indicator tells us if housing is cheap, expensive, or somewhere in between.

Again, things have changed since I first began urging readers to buy real estate. Housing affordability is now at a 10-year low. Take a look…

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A high affordability number indicates housing is cheap… signaling a great time to buy. A low number indicates an expensive market, where folks will have to stretch to buy.

You can see that housing is getting less affordable. It recently fell to affordability levels not seen since 2008. But that doesn’t tell the full story.

Despite a decade low for affordability, we’re now right at the long-term average. Check it out…

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It’s true that the easy money in real estate might be behind us. But affordability hasn’t completely dried up.

We are clearly in the late innings of this boom. The great deals are getting harder to find, but certain markets still have plenty of value remaining.

I’ve personally put a large chunk of my net worth into Florida real estate. I’ve sold some of those properties for big profits… but I’ve been able to find new deals too.

So while affordability is down, I remain bullish on U.S. housing. We’re still near the long-term average for affordability in U.S. housing. And folks can still make money in U.S. real estate.

If you’re looking to put money to work, buying a house is still a solid deal today.

Brokers Seeing “Simple Economic Recipe For a Softening Housing Market”

Source: NWMLS

KIRKLAND, Washington (July 5, 2018) – Home buyers around many parts of Washington state had
more choices and less competition during June, prompting some industry leaders to comment on “a
feeling of change in the market.”

“Inventory is up and demand has dropped,” reported Robert Wasser, an officer with the board of directors
at Northwest Multiple Listing Service. That combination is “a pretty simple economic recipe for a
softening market,” he added in commenting on the latest MLS statistics.

Figures for June show a 5.2 percent improvement in the number of active listings system-wide, coupled
with drops in the volume of pending sales (down 8.4 percent) and closed sales (down .07 percent)
compared with a year ago. Despite the shift of some indicators favoring buyers, prices area-wide
continued to rise, increasing more than 10 percent from twelve months ago.

“There was a feeling of change in the market this June and the numbers supported that feeling,” remarked
John Deely, principal managing broker at Coldwell Banker Bain. He noted many brokers also reported an
increase in properties going past their offer review date, more price reductions, and an increase in reverse
prospecting (a tool that allows the listing broker to view a list of brokers with potential buyers for that
listing). “We’re also experiencing a decrease in multiple offers and the number of buyers participating in
multiple offers,” added Deely.

Northwest MLS brokers added 13,153 new listings to inventory during June, a drop from both a year ago
when they added 13,658, and from May when 14,524 new listings were added. With new listings
outgaining sales, total inventory as measured by active listings and months of supply improved.

At month end, Northwest MLS reported 15,234 active listings and 1.5 months of supply. Inventory of
single family homes and condos reached its highest level since October. The supply of active listings in
King County surged 47 percent from a year ago, boosting the months of supply to just under 1.3 months –
the highest level since September 2016 when there was 1.37 months of supply.

“Although still a quick response market, with more new listings coming on the market during the summer
months, we experienced dispersed buyer energy due to the greater availability and selection,” stated J.
Lennox Scott, chairman and CEO of John L. Scott Real Estate. He estimates sales activity is off 15-to-20
percent for each new listing’s first 30 days on the market. “Now through October will be the best time of
year for homebuyers,” he remarked.

“Sellers are becoming more active in the market as they sense buyers pulling back,” suggested George
Moorhead, designated broker and owner at Bentley Properties. Improving supply, a marked increase in
expired or cancelled listings, and market times almost doubling are factors he mentioned when describing
the market as “more than just lackluster” with summer showing no sign of improvement.

Home Prices: Boom Continues, but Leveling Out Needed

Source: RISMedia

The boom is continuing for home prices, with a gain in March of 6.5 percent, according to the S&P CoreLogic/Case-Shiller Indices.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index’s 10-City Composite, which is an average of 10 metros (Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C.), rose 6.5 percent year-over-year, an increase from 6.4 percent in February. The 20-City Composite—which is an average of the 10 metros in the 10-City Composite, plus Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle and Tampa—rose 6.8 percent year-over-year, which is comparable to February. Month-over-month, both the 10-City Composite and the 20-City composite rose, 0.9 percent and 1 percent, respectively.

“The home price increases continue, with the National Index rising at 6.5 percent per year,” says David M. Blitzer, chairman and managing director of the S&P Dow Jones Indices Index Committee.

“Looking across various national statistics on sales of new or existing homes, permits for new construction, and financing terms, two figures that stand out are rapidly rising home prices and low inventories of existing homes for sale,” Blitzer says. “Months-supply, which combines inventory levels and sales, is currently at 3.8 months, lower than the levels of the 1990s before the housing boom and bust.

“Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising,” says Blitzer. “Compared to the price gains of the last boom in the early 2000s, things are calmer today.”

“The solid gain in home prices of 6.5 percent in March added roughly $150 billion to housing wealth during the month,” said Lawrence Yun, chief economist at the National Association of REALTORS® (NAR), in a statement. “The continuing run-up in home prices above the pace of income growth is simply not sustainable. From the cyclical low point in home prices six years ago, a typical home price has increased by 48 percent, while the average wage rate has grown by only 14 percent. Rising interest rates also do not help with affordability; therefore, more supply is needed to level out home prices. Homebuilding will be the key as to how the housing market performs in the upcoming years.”

The complete data for the 20 markets measured by S&P:

Atlanta, Ga.
Month-Over-Month (MoM): 0.8%
Year-Over-Year (YoY): 6.2%

Boston, Mass.
MoM: 1.2%
YoY: 5.8%

Charlotte, N.C.
MoM: 1%
YoY: 6.2%

Chicago, Ill.
MoM: 1.1%
YoY: 2.8%

Cleveland, Ohio
MoM: 0.3%
YoY: 4.6%

Dallas, Texas
MoM: 0.7%
YoY: 5.8%

Denver, Colo.
MoM: 1.4%
YoY: 8.6%

Detroit, Mich.
MoM: 1.1%
YoY: 7.9%

Las Vegas, Nev.
MoM: 1.5%
YoY: 12.4%

Los Angeles, Calif.
MoM: 0.9%
YoY: 8.1%

Miami, Fla.
MoM: 0.7%
YoY: 5%

Minneapolis, Minn.
MoM: 1.7%
YoY: 6.1%

New York, N.Y.
MoM: 0.1%
YoY: 5.2%

Phoenix, Ariz.
MoM: 0.9%
YoY: 6.8%

Portland, Ore.
MoM: 1%
YoY: 6.7%

San Diego, Calif.
MoM: 1%
YoY: 7.7%

San Francisco, Calif.
MoM: 2.1%
YoY: 11.3%

Seattle, Wash.
MoM: 2.8%
YoY: 13%

Tampa, Fla.
MoM: 0.6%
YoY: 7.5%

Washington, D.C.
MoM: 1.1%
YoY: 3%