Hot Summer Market

Posted: July 16th, 2014 by Brad

Listing activity increased during June. Yet strong job growth in the Seattle/King County region has brokers predicting brisk sales with competitive bidding throughout the summer.

Figures just released by Northwest Multiple Listing Service for June activity show gains from a year ago on several key indicators, including inventory, pending sales, closed sales, and prices:

  • Brokers added 735 more new listings during June than during the same month a year ago, an increase of 6.8 percent;
  • Inventory (total active listings) rose 7.5 percent compared to twelve months ago;
  • Pending sales (mutually accepted offers) are up about 4.5 percent year-over-year;
  • Closed sales rose 3.3 percent from a year ago;
  • Prices for sales of single family homes and condominiums climbed 6.9 percent from same period last year, reaching the highest level since August 2008.

Supply, as measured by the ratio between listings and sales, remains tight across many of the 21 counties in the Northwest MLS system. King County shows only 1.8 months of inventory, with Snohomish slightly better with about 2.8 months of supply. Area-wide, there is 3.35 months of inventory. Many industry experts consider 4-to-6 months to be the barometer for a balanced market.

Northwest MLS chairman Darin Stenvers said “not all sellers are feeling movement in their markets.” New home starts and a higher demand for employees will help keep the outlook optimistic, Stenvers believes – a view shared by other brokers.

A director with Northwest MLS John Deely expects the brisk market to continue into fall, citing low interest rates, increasing prices and inventory, and high demand as drivers of the positive activity.

“Brokers in the Seattle market are keeping busy as multiple offers and cash buyers dominate new, well priced listings in most markets,” Deely said. The market for homes priced at $1 million and up around Seattle is experiencing pending sales volume at levels not seen since 2007, according to his analysis.

Deely has also noticed a “marked increase in the number of contingent offers being written and accepted.”  He spoke of one listing that drew four offers, with two of them contingent on the sale of the buyer’s home, and the other two cash. The seller elected to accept one of the contingent offers because of more favorable terms, as well as because the buyers already lived in the neighborhood and the seller was confident that neighbor’s home would sell quickly due to activity in the surrounding area.

Brokers reported 9,909 pending sales during June, outgaining a year ago by 425 transactions for an increase of nearly 4.5 percent. Ten counties reported double-digit increases. Last month’s pending sales, although up from 12 months ago, declined compared to May (down about 4.5 percent).

June’s closed sales (completed transactions) climbed about 3.3 percent from a year ago. Brokers reported 7,558 closings during June, surpassing May’s mark by 371 transactions for a gain of nearly 5.2 percent.

The median price system-wide was just under $300,000 ($299,335), which represents an increase of more than 6.9 percent from a year ago. The last time the median price topped $300,000 for the overall area was August 2008 when it was $302,500.

King County continues to report the highest median price for single family homes and condos (combined) at $410,000. That’s up 7 percent from a year ago. For single family homes (excluding condos) the county-wide price jumped more than 6 percent compared to a year ago, rising from $427,500 to $453,500.

Deely said the steady increase in prices appears to be incentivizing otherwise dormant sellers to make their move to buy and sell.

Commenting on the competition between buyers, Stenvers encouraged buyers to take advantage of technology. “Buyers that want fast, accurate data should work with a real estate professional to have a home search set up so results can be emailed directly to them,” he suggested. “This will allow them first shot at all the new listings and reduce the chance of missing hot new inventory.”

Leave a Reply

justrealseattle metropolitan Seattle Real Estate
FirstLast
Helps us to help you by knowing your neighborhood.
image description
Receive a
complimentary
Just Real Seattle

Home Packet.
Selling PacketBuying Packet
Yes, I'd like to receive your newsletter.

We strongly disapprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle top five deals
FirstLast
image description
Receive a
complimentary
Just Real Seattle

Interested in knowing what the last five top
residential real estate deals were in a specific neighborhood? Just specify your neighborhod of choice and we'll send you a complimentary report.

Yes, I'd like to recieve your newsletter.

We strongly dissaprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle metropolitan real estate stats
FirstLast
Helps us to know your neighborhood.
image description
Receive a
complimentary
Just Real Seattle
Real Estate
Stats Report.

We pride ourselves on being your "local economists." Providing you with current inventory and pricing data to help you make an educated and informed decision about the selling or purchasing your home.

Yes, I'd like to recieve your newsletter.

We strongly dissaprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle newsletter

Info you can use... Local Real Estate news,
lending info, home tips, property profiles, neighborhood happenings, local culture and more!

Close