The housing market in the Pacific Northwest continued to be frenzy hot in June, but there was a short breath of fresh air for home buyers. More inventory came on the market, and that, coupled with historical low interest rates, brought some welcome relief to the backlog of buyers who have been waiting to purchase a home. Although the multiple offers in some of the higher price ranges ebbed some, 85% of homes coming on the market in June sold in the first 30 days where the average is 29%. Pending sales were up 11.6% , the highest since 2005 for June. New listings were up 17.2% for Puget Sound, however, we still have low inventory with a backlog of buyers.
We have very strong market conditions with excellent job growth and historically low interest rates (3.53% at this writing as compared to 3.98% a year ago). The months of supply of homes in King County in all price ranges last month was below 1% where 5-6 months is considered a normal market; Seattle has been averaging 12 days! In the $1,000,000 and above price range the months’ supply is 2.6 months of inventory.
The average (not median) price a home now in King County is $606,000. We are less than 1% off the all time high in 2005–a market that was based on sub-prime buyers, now we have healthy home buyers. The next 4 months through October when inventories will continue to come on will be the best time for buyers as they will have more choices. November through February will see fewer homes coming to market with typically half the inventory as the rest of the year. The next 12 months through summer of 2017 is predicated to be a continued surge market with prices continuing to be strong, sales activity brisk and interest rates to remain low.
For your personal consultation whether you are buying or selling, please contact me.
John L Scott
Mobile: 206 919-9135