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Local Market Update – May 2021
A sizeable increase in new listings in April offered some good news for buyers, but it was matched by an even greater increase in sales. With supplies depleted, and homes being snapped up within days, nearly every area saw double-digit price gains. The current forecast as we head towards summer: the market remains as hot as ever.
Despite the influx of new listings, inventory in the region remains one of the tightest in the country. At the end of the month there were 43% fewer homes on the market in King County than there were a year ago. Snohomish County had 49% less inventory, and has just 519 single-family homes for sale in the entire county. There were only 309 homes for sale on the Eastside, which stretches from Renton to Woodinville. Demand is so outstripping supply that 95% of the homes that sold last month on the Eastside sold within two weeks. In Seattle that number was 84%.
Home prices hit record highs in April, with nearly every area seeing double-digit price increases. The median price of a single-family home in King County last month was $830,000. Snohomish County’s median price soared to $675,000. Seattle’s median home price hit $875,000. All were new records. At $1.3 million, the median price on the Eastside was down slightly from its all-time high in March, but up a whopping 39% from the same time last year. In another show of the strength of the market, 82% of homes on the Eastside sold for over the list price. That compares with 60% of homes in Seattle. The Seattle market remains strong, however price appreciation there has slowed relative to other areas of King County and inventory has crept up. Condos present one bright spot for buyers. Price growth has been slower and inventory has been higher than for single-family homes. The $460,000 median price for a condo in King County is 45% less than the median price of a single-family home there.
Needless to say, this is a challenging market for buyers. With multiple offers and escalation clauses the norm, it’s critical to work with your broker on a plan to consider all possible scenarios when looking to buy a home. If you’re thinking about selling, it’s an ideal time to get a maximum return on your property before the prospect of rising interest rates starts to moderate the market.
The charts below provide a brief overview of market activity. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update on the US economy and housing market. You can get Matthew’s latest update here.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GettheWReport.com
Local Market Update – January 2021
The end of 2020 marked a most unusual year, and the real estate market was no exception. While homes sales usually take a holiday during December, this year saw the continuation of an exceptionally strong and competitive market. New listings, closed sales and home prices all went up. With supply nowhere close to meeting demand, the strong market is expected to extend into 2021.
Inventory continues to be the biggest challenge for buyers. While King County had a 62% increase in new listings compared to a year ago, homes were snapped up quickly, leaving the county with just over two weeks of available inventory at the end of the month. The supply of single-family homes was down 35% year-over-year. Buyers considering a condo had far more choices. Inventory was up 45%, but at about five weeks of available units the condo market is still significantly short of the four month supply that is considered balanced. Inventory in Snohomish County was even more strained, with the month end showing only a one-week supply of homes. At the end of December there were only 373 homes on the market in all of Snohomish County, a 63% drop from a year ago. With inventory this tight, it’s more important than ever for buyers to work with their agent on a strategic plan for getting the home they want.
Low inventory and high demand continued to push prices upward. The median single-family home price in King County was up 10% over a year ago to $740,000. Price increases varied significantly by area. Seattle home prices were up 10%. The traditionally more affordable area of Southwest King County, which includes Federal Way and Burien, saw prices jump 15%. And on the Eastside, the most expensive market in King County, home prices soared 17% — the largest increase of any area in the county. Home prices in Snohomish County rose 12% to $573,495, just shy of its all-time high of $575,000.
With 2021 ushering in a new record low for interest rates, and inventory at its tightest in recent memory, 2021 is expected to remain a very competitive market.
Windermere Chief Economist Matthew Gardner’s prediction: “As we move into 2021, I expect continued strong demand from buyers, but unfortunately, the likelihood that there will be any significant increase in inventory is slim. As a result, I believe prices will continue to rise, which is good news for sellers, but raises concerns about affordability. This, combined with modestly rising mortgage rates, could end up taking some steam out of the market but overall, I expect housing to continue being a very bright spot in the Puget Sound economy.”
The charts below provide a brief overview of market activity. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
This post originally appeared on GetTheWReport.com
Windermere Foundation Has Raised over $825,000 This Year!
Image source: Shutterstock
The first half of 2020 has brought uncertain times and unprecedented change, and across our network, our agents and offices have rallied with their communities through the challenges of the COVID-19 pandemic. We’ve seen offices come together in support of their neighbors by providing meals to frontline workers, donating to local food banks, and giving their time in support of low-income and homeless families impacted by COVID-19. So far this year, we’ve raised over $825,000, with over $500,000 coming in second quarter alone, bringing the total raised by the Windermere Foundation to $41.8 million.
Here’s how some of our offices have served their communities during the COVID-19 pandemic:
Sedro Woolley & Mount Vernon, WA
Over the course of the first half of the year, the Windermere Sedro Woolley and Windermere Mount Vernon offices have donated more than $5,000 combined to the Helping Hands Food Bank to help their mission of providing local families with healthy meals through the pandemic.
Gearhart & Cannon Beach, OR (Windermere Realty Trust)
In a joint effort through Windermere Realty Trust, the Oregon Coast offices of Cannon Beach and Gearhart raised $2,000 for the organization Food 4 Kids. Food 4 Kids’ goal is to supply elementary and middle school students in the Seaside School District with supplementary weekend meals during the school year, currently feeding 235 children.
Penrith Home Loans
Earlier this year, Windermere’s mortgage partner, Penrith Home Loans, donated a total of $12,000 to the Windermere Foundation.
“The Windermere Foundation’s dedication to supporting low-income and homeless families in our communities aligns with the personal values of the employees who make up Penrith Home Loans,” said Maya Dartiguenave, Marketing Manager at Penrith Home Loans.
Penrith’s donations supported the organizations Hopelink and Share Vancouver. Hopelink was chosen by Penrith because of their holistic approach to helping people out of poverty and its mission “to promote self-sufficiency for all members of our community.” Share Vancouver was chosen because of its commitment to making Vancouver, Washington a home for everyone in the community. Examples of their work include employing an outreach team directly on the streets of Vancouver, providing emergency shelters, offering free meals to hungry children and subsidized housing to low-income families.
Neighbors in Need
Between April 21 and May 5, the entire Windermere network came together to support local food banks through our Neighbors in Need fundraising campaign. Offices were challenged to raise $250,000, to be matched by the Windermere Foundation, for a total goal of $500,000. While coping with increased demand and a bottlenecked pipeline of food supply due to COVID-19, food banks were—and continue to be—desperate for funds to continue to serve those in need. Neighbors in Need surpassed the original goal of $500,000, raising a total of $690,000, and helping hundreds of food banks.
“I’m incredibly proud of how our offices and the community came together to raise much needed money and awareness to help food banks keep up with unprecedented needs,” said Windermere Foundation Executive Director, Christine Wood. “I hope we inspire others to do the same.”
These are just a few examples of how the donations flowing through the Windermere Foundation propel us forward in our mission to support low-income and homeless families in the communities across the Western U.S. If you’d like to help support organizations and programs in your community, please click the Donate button.
To learn more about the Windermere Foundation, visit WindermereFoundation.com.
This post originally appeared on the Windermere.com Blog
Western Washington Real Estate Market Update
The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.
A MESSAGE FROM MATTHEW GARDNER
Needless to say, any discussion about the U.S. economy, state economy, or housing markets in the first quarter of this year is almost meaningless given events surrounding the COVID-19 virus.
Although you will see below data regarding housing activity in the region, many markets came close to halting transactions in March and many remain in some level of paralysis. As such, drawing conclusions from the data is almost a futile effort. I would say, though, it is my belief that the national and state housing markets were in good shape before the virus hit and will be in good shape again, once we come out on the other side. In a similar fashion, I anticipate the national and regional economies will start to thaw, and that many of the jobs lost will return with relative speed. Of course, all of these statements are wholly dependent on the country seeing a peak in new infections in the relatively near future. I stand by my contention that the housing market will survive the current economic crisis and it is likely we will resume a more normalized pattern of home sales in the second half of the year.
HOME SALES
- There were 13,378 home sales during the first quarter of 2020, a drop of only 0.2% from the same period in 2019, but 27% lower than in the final quarter of 2019.
- The number of homes for sale was 32% lower than a year ago and was also 32% lower than in the fourth quarter of 2019.
- When compared to the first quarter of 2019 sales rose in eight counties and dropped in seven. The greatest growth was in Cowlitz and Lewis counties. The largest declines were in Island and Snohomish counties.
- Pending sales — a good gauge of future closings — rose 0.7% compared to the final quarter of 2019. We can be assured that closed sales in the second quarter of this year will be lower due to COVID-19.
HOME PRICES
- Home-price growth in Western Washington rose compared to a year ago, with average prices up 8.7%. The average sale price in Western Washington was $524,392, and prices were 0.4% higher than in the fourth quarter of 2019.
- Home prices were higher in every county except San Juan, which is prone to significant swings in average sale prices because of its size.
- When compared to the same period a year ago, price growth was strongest in Clallam County, where home prices were up 21.7%. Double-digit price increases were also seen in Kitsap, Skagit, Mason, Thurston, and Snohomish counties.
- Affordability issues remain and, even given the current uncertain environment, I believe it is highly unlikely we will see any form of downward price pressures once the region reopens.
DAYS ON MARKET
- The average number of days it took to sell a home in the first quarter of this year dropped seven days compared to the first quarter of 2019.
- Pierce County was the tightest market in Western Washington, with homes taking an average of only 29 days to sell. All but two counties — San Juan and Clallam — saw the length of time it took to sell a home drop compared to the same period a year ago.
- Across the entire region, it took an average of 54 days to sell a home in the first quarter of the year — up 8 days compared to the fourth quarter of 2019.
- Market time remains below the long-term average across the region. This is likely to change, albeit temporarily, in the second quarter due to COVID-19.
CONCLUSIONS
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
Given the current economic environment, I have decided to freeze the needle in place until we see a restart in the economy. Once we have resumed “normal” economic activity, there will be a period of adjustment with regard to housing. Therefore, it is appropriate to wait until later in the year to offer my opinions about any quantitative impact the pandemic will have on the housing market.
ABOUT MATTHEW GARDNER
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
This post originally appeared on the Windermere.com Blog
