Summary
Due to ongoing inventory shortages, well priced homes continue to receive multiple offers.
- There’s More Inventory, but it’s Going Fast: Despite about 1.5 months of supply overall, available homes for sale continue to sell quickly. With interest rates less volatile than last year, now around 6.5%, buyers are jumping on move-in-ready and well-priced homes.
- Prices are Down Compared to Last Year: The median price for last month’s sales of single-family homes and condos across the 26 counties in the NWMLS was $603,250, down about 8.6% when compared to twelve months ago.
- Prices are Up Compared to January: When compared to January 2023’s median price of $557,250, prices are up nearly 8.3%. April marked the fourth consecutive month of rising prices.
- Pricing Correctly is Key: Sellers looking to create buzz and generate competition for their homes must price correctly. An overpriced home, even with such low inventory, is sitting on the market.
- Despite Wanting to Move, Some Potential Sellers are Staying Put: After locking in low home mortgage interest rates during the past few years, more homeowners are choosing to simply stay in their current home.
Details
Market dynamics are influencing adjustments in housing prices, suggested an officer at Northwest Multiple Listing Service, but with “very constricted” inventory, he said homes that are well priced continue to receive multiple offers.
The latest report from NWMLS, summarizing April activity, shows year-over-year drops in new listings, pending sales and closed sales, an increase in total active listings, and lower prices.
Brokers reported 7,137 pending sales of single-family homes and condos during April, down nearly 27% from a year ago, but notching the highest volume so far this year, edging out March by one transaction. Pending sales are up more than 23% from January’s total (5,776).
Closed sales slipped 36%, from the year-ago total of 8,344 to last month’s total of 5,338. Compared to January’s figure of 3,264 sales, April’s completed transactions surged 63.5%.
The median price for last month’s sales of single-family homes and condos across the 26 counties in the report was $603,250, down about 8.6% when compared to twelve months ago. When compared to January’s median price of $557,250, prices are up nearly 8.3%. April marked the fourth consecutive month of rising prices.
In King County, which accounted for 35% of last month’s closed sales, the median price of $790,244 fell 10.2% from the year earlier price of $880,000. A comparison with January shows prices are up 9.3%.
Northwest MLS brokers added 7,303 new listings to the database during April. That total was down from both March, when they added 7,904 new listings, and the same month a year, when they added 11,681 new listings. On a percentage basis, the year-over-year drop was 37.5%.
With slower sales, total supply improved compared to a year ago, but it’s still well below the 4-6 months of inventory that is considered to be a balanced housing market.
At the end of April, there were 8,114 active listings in the NWMLS database, an increase of 1,600 from the year-ago supply for a gain of nearly 24.6%.
King County residential homes (excluding condos), the median price change year-over-year is down 12%. However, the median price has been going up steadily every month since January, with a median price up 12%. From March to April, it’s up over 4%.
Northwest MLS figures show the median price for single-family homes that sold last month in King County was $875,000; a year ago, it was $995,000. In January, the median price was $781,098.
The April report from Northwest MLS shows seven counties had year-over-year price increases (Adams, Clallam, Columbia, Ferry, Jefferson, Pacific, and San Juan). Five counties had double-digit price drops. Prices were unchanged in Lewis County.
In Kitsap County, prices slipped about 8.7% from a year ago, but are up 4.7% since January.
Pending sales in Kitsap County fell 18.8% — much less than nearby counties. Mutually accepted offers were down more than 27% in both King and Pierce counties and down nearly 34% in Snohomish County.
Some industry-watchers suggest easing inflation could bode well for the housing market. Inflation fell to 5% in March, the lowest rise in nearly two years. “With inflation showing some signs of slowing, mortgage rates could come down,” suggested Greg McBride, Bankrate’s chief financial analyst.
The real estate market continues to SLOWLY transition to a more balanced market, but we still have a long way to go.
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Data
*Information and statistics compiled and reported by the Northwest Multiple Listing Service.
