As we head toward the end of the 4th quarter and into the holidays, the mantra of low inventory still prevails. Last month’s housing inventory around western Washington fell to its lowest level since February 2006, down 30% from this time last year, according to statistics from Northwest Multiple Listing Service, and year-over-year prices on closed sales area-wide increased by double-digits for the first time since March 2007. Closed sales of single family homes and condominiums last month increased nearly 26% year over year and prices for single family homes, which accounted for more than 86% of October’s sales, rose more than 11%, while prices for condominiums jumped 16.6%.
The shortage of inventory and continued demand for houses is propelling prices along with low interest rates which is keeping the demand going at a time of year where activity normally slows. The brisk sales activity is creating imbalanced markets in some Northwest MLS counties, area-wide there is less than a three month supply of homes and it is less than two months supply in King County (industry experts consider 5-to-6 months as the indicator of a balanced market). In King County closed sales rose more than 33% last month, led by the Eastside areas, which posted a 48.5% increase from a year ago. Prices for homes and condos that sold last month in King County increased 19% compared with the same time a year ago, and rose 2.2% from September.
Bottom line, if you are a seller and thinking of selling, now is a great time. Some sellers who are on the market take their homes off over the holidays which is the wrong tactic, especially this year. Buyers sometime use the holidays to travel where they plan to move and shop for houses, if you are not on the market, they won’t find you. Usually the number of people looking is lower this time of year but the ones who are out are the serious buyers who do have to purchase soon.
Please contact me if you would like more information.
