- The housing market is getting “more balanced, and not so crazy …and that’s a good thing”
- The Northwest Multiple Listing Service report has shown a significant increase in active listings compared to a year ago, a slowdown in sales, with prices still rising slightly.
- And yes, you are seeing more “For Sale” signs in yards and online. Right now, buyers have the largest selection of homes available since September 2020. Even with the increase in inventory, there is still less than one month of supply area-wide (specifically 0.97 months).
- Prices are slowly decelerating – last month’s sales fetched 105.7% of the asking price, down from April when it was 107.7% and March when it was 108.2%.
- For sellers, the days of multiple offers are fading, longer days on the market is a reality …and for those ignoring market pricing, price reductions are in the future.
- It will take some time, but as we move more toward a balanced market, it should be a win-win for both buyers and sellers.
NWMLS members added 13,075 new listings to inventory during May, up 9.7% from a year earlier and the highest monthly number since June 2021.
At the end of May, buyers could choose from 8,798 active listings system-wide, up a whopping 59% from a year ago when there were only 5,533 properties in the database. That is the largest selection since September 2020 when there were 9,099 single-family homes and condominiums offered for sale across the 26 counties served by Northwest MLS.
Two counties more than doubled their number of active listings from a year ago. The selection in Snohomish County jumped from 500 to 1,182 listings (up 136.4%). Douglas County had a similar increase, rising 134.5%. Also nearly doubling their inventory from a year ago were Cowlitz, Island, and Walla Walla counties.
Even with the healthy uptick in inventory, there is still less than one month of supply area-wide (0.97 months). Twenty of the 26 counties in the report are showing more than a month of supply, with the tightest inventory (0.85 months or less) in the four-county Puget Sound region.
Both pending sales (mutually accepted offers) and closed sales during May were down from a year ago, but up from the previous month.
Pending sales declined about 11.7% from twelve months ago but increased 8.2% compared with April. Members reported 10,563 pending sales of homes and condos last month, up from April’s figure of 9,760, but down from the year-ago total of 11,969.
Closed sales dipped slightly from a year ago (down about 3%) but rose 9% from April. Members completed 9,096 sales last month, which was 278 fewer than a year ago. May’s total outgained April by 752 transactions.
Buyers can expect to pay more for homes and condos, although the increases may be moderating. Last month’s system-wide median price of $660,000 was up 12.8% from the year-ago figure of $585,000. Comparing percentages, that was the smallest YOY increase since December 2020 when it was 12.2%.
NWMLS figures show last month’s sales fetched 105.7% of the asking price, down from April when it was 107.7% and March when it was 108.2%.
MLS figures show there were 95 sales of properties priced at $2 million or more in January. That number rose to 136 in February, 325 in March, 389 in April, and 353 in May.
Would-be owners of condominiums will find limited choices with inventory down more than 9% from a year ago. Prices are up nearly 15%, rising from $435,000 to $500,000.
Within King County, for example, Northwest MLS tracks data for 30 map areas. Last month’s median sales prices ranged from $565,400 in the area encompassing Dash Point and Federal Way to nearly $2.6 million on Mercer Island. Also notable is area 720 where Shoreline and Lake Forest Park are located. That area had a year-over-year price bump of 52.4%, with the median price surpassing $1 million for the first time, according to MLS records. In nine of the 30 map areas in King County, median prices exceeded $1 million last month.
So welcome back to a more normal, more balanced real estate market. During these changing and challenging market conditions, it’s even more important for you to work with a professional real estate advisor. Whether buying, selling, or investing in real estate, be sure to utilize the talent and expertise of our trusted real estate team, The Goelzer Home Team. Let us know how we can help you achieve your real estate Wants, Needs, and Dreams!