What’s Happening in the Market
Eastside (based on Residential and Condominium report):
- Closed median price at an all-time high of $748,944, up 20% from a year ago
- Price appreciation is being driven by low supply and high demand. Eastside months’ supply of inventory is less than three weeks, the lowest ever!
- 748 active listings as of 4/30/17. Down 33% from the year before and 48% from two years before.
- Scarcity has buyers paying above list price on 65% of the sales that closed in April.
- What was the cost of waiting on year (April 2016 vs April 2017) to buy? $123,944 in median price. $9,026 per year in payment.
What’s Happening in the Market
- Closed median price at an all-time high of $736,500, up 20% from a year ago.
- Price appreciation is being driven by low supply and high demand. Eastside month’s supply of inventory is less than three weeks (0.7 months), the lowest ever.
- 737 active listings as of 3/31/17. Down 21% from last year and 42% from the year before.
- Scarcity has buyers paying above list price on 61% of the sales that closed in March.
- What was the cost of waiting on year (March 2016 vs March 2017) to buy? $120,400 more in median price. Interest rates up .51%. $769 a month more for the same home.
What’s Happening in the Market
Home sales continue to be slightly above last year’s totals in the areas tracked in this report. We are continuing to see double digit price increases spread out from the core of Bellevue and Seattle due to the somewhat exorbitant prices now demanded from the metro area Sellers.
Inventory hit an all-time low in February which at last count was 3 weeks of inventory if nothing new came on the market. (That’s weeks, not months!) We do expect to see an increase in listings in March and April, but Sellers are still wary of putting their home on the market with nowhere to go. Buyers and Buyers agents are having to be creative with their offers as we are seeing at least 50% of the sales occurring are done in multiple offer situations. We don’t expect this to change anytime soon!
King County Residential Home Price-Increase in 2016
|Shoreline/Richmond Beach||$439,725–> $503,393|
|Lake Forest Park||$432,250–> $505,350|
|North Seattle||$575,000–> $679,950|
|Queen Anne/Magnolia||$780,500–> $882,500|
|Central Seattle||$689,999–> $774,995|
|SODO/Beacon Hill||$420,000–> $501,975|
|West Seattle||$450,000–> $511,500|
|Southeast Seattle||$441,500–> $500,000|
|West Bellevue||$1,751,000–> $1,948,000|
|East Bellevue||$638,950–> $730,000|
|East Lake Sammamish||$645,000–> $736,001|
|South Bellevue/Newcastle||$713,000–> $788,888|
|Mercer Island||$1,195,000–> $1,315,000|
All data compiled from information supplied by Northwest Multiple Listing Association on 1/01/2017 Accuracy of information herein is not guaranteed.
This information was only taken of single-family homes, and does not include condominiums or vacant land.
OVERVIEW of Western Washington Real Estate Market
Here is a detailed overview of Western Washington Real Estate Market. Washington State finished the year on a high with jobs continuing to be added across the market. Additionally, we are seeing decent growth in the area’s smaller markets, which have not benefited from the same robust growth as the larger metropolitan markets.
Unemployment rates throughout the region continue to drop and the levels in the central Puget Sound region suggest that we are at full employment. In the coming year, I anticipate that we will see substantial income growth as companies look to recruit new talent and keep existing employees happy.
HOME SALES ACTIVITY
- There were 19,745 home sales during the fourth quarter of 2016—up by a very impressive 13.4% from the same period in 2015, but 18.7% below the total number of sales seen in the third quarter of the year. (This is a function of seasonality and no cause for concern.)
- Sales in Clallam County grew at the fastest rate over the past 12 months, with home sales up by 47%. There were also impressive sales increases in Grays Harbor and Thurston Counties. Jefferson County had a fairly modest decrease in sales.
- The number of available listings continues to remain well below historic averages. The total number of homes for sale in the fourth quarter was down by 13.7% compared to the same period a year ago.
- The key takeaway from this data is that 2017 will continue to be a seller’s market. We should see some improvement in listing activity, but it is highly likely that demand will exceed supply for another year.
- Demand continued to exceed supply in the final three months of 2016 and this caused home prices to continue to rise. In the fourth quarter, average prices rose by 7.1% but were 0.4% higher than the third quarter of the year. The region’s average sales price is now $414,110.
- In most parts of the region, home prices are well above historic highs and continue to trend upward.
- When compared to the fourth quarter of 2015, price growth was most pronounced in Kittitas County. In total, there were eight counties where annual price growth exceeded 10%. We saw a drop in sales prices in the notoriously volatile San Juan County.
- The aggressive home price growth that we’ve experienced in recent years should start to taper in 2017, but prices will continue to increase at rates that are higher than historic averages.
DAYS ON MARKET
- The average number of days it took to sell a home in the fourth quarter dropped by 15 days when compared to the fourth quarter of 2015.
- King County was the only area where it took less than a month to sell a home, but all markets saw decent improvement in the time it took to sell a home when compared to a year ago.
- In the final quarter of the year, it took an average of 64 days to sell a home. This is down from the 78 days it took in the third quarter of 2015, but up from the 52 days it took in the third quarter of 2016. (This is due to seasonality and not a cause for concern.)
- We may experience a modest increase in the time it takes to sell a home in 2017, but only if there is a rapid increase in listings, which is certainly not a given.
This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates, and larger economic factors. For the fourth quarter of 2016, I actually moved the needle a little more in favor of buyers, but this is purely a function of the increase in interest rates that was seen after the election. Higher borrowing costs mean that buyers can afford less, which could ultimately put some modest downward pressure on home prices in 2017. That said, the region will still strongly favor sellers in the coming year.
This article were first Posted on windermere.com by Matthew Gardner, Chief Economist, Windermere Real Estate