Kari's BlogReal Estate Market Updates & InsightReal Estate Related January 29, 2024

Local Market Update – January 2024

Despite moments of snow in Western Washington, the local real estate market is slowly warming, as new opportunities arise for both home buyers and sellers. Lower mortgage rates are welcome news for buyers, and low inventory means sellers are starting the year with minimal competition.

King County continues to see residential price gains, with last month’s median sold price of $849,950 up from $825,000 a year ago. Condo prices also rose, up 15% from $465,000 in December 2022 to $537,000 last month. King County is also experiencing a reduced supply of available single-family homes. At the end of last month, inventory stood at 1.3 months, down from 1.6 months at the end of November and 2.0 months a year prior.

In a slightly different dynamic, Seattle experienced a decrease in both inventory and home prices last month. The median residential sold price was down from $879,975 in December 2022 to $850,000 last month. And December ended with 1.7 months of inventory, down from 1.9 months the previous month. While 16% of homes sold above list price in December, that was significantly lower than November, when 29% sold above asking. Seattle condo prices rose year-over-year, from $512,500 in December 2022 to $585,000 last month, with supply dropping 22 percent.

Following a modest decline in November, the Eastside rallied with an 11% bump in the median residential sold price, up from $1,400,000 last year to $1,440,000 last month. Further proof of a warming Eastside market: residential inventory is less than half of what it was last year, down from 2.5 months at the end of 2022 to just 1.2 months at the end of 2023. Mirroring the residential market, Eastside condominiums experienced a healthy 12% price increase last month, up from a median of $565,000 a year ago to $630,000.

Snohomish County was an interesting tangle of contradicting sales data. Median residential sold prices saw a slight year-over-year decrease last month, down from $700,000 to $684,995. This price decrease occurred despite a dramatic drop in inventory. The supply of Snohomish County single-family homes stood at just 0.8 months at the end of December, down from 1.8 months the year prior. Of the four areas reported in this market update, Snohomish County saw the lowest percentage of sold homes that had experienced a price reduction, at 41%, perhaps a reflection of the drastically reduced supply. Another possible outcome of the limited supply of single-family homes: the median sold price for Snohomish County condos jumped 11% year over year, from $469,950 in December 2022 to $523,500 last month.

As we move further into the new year, buyers remain hopeful that interest rates will continue to drop. The inventory of homes on the market has declined from a year ago in most markets, prompting price gains during what’s normally a slower time of year. Overall, the regional condo market has seen sustained activity, with unit sales experiencing only a modest decrease in the face of lower inventory and higher prices.

With regional submarkets exhibiting varying dynamics, it’s more important than ever for buyers and sellers to have a knowledgeable expert at their side. So connect with your Windermere broker to co-create a strategy that’s best for your buying or selling journey.

EASTSIDE

King County

Seattle

Snohomish County

 

Real Estate Market Updates & Insight September 14, 2023

September 2023 Real Estate Market Update

As summer draws to a close, the local housing market remains somewhat unsettled. This is due to persistently high interest rates that have caused buyers to pause and sellers to hold onto their pandemic-era mortgage rates, as well as low inventory increasing competition for the available listings. Sold home prices in some areas have begun to see year-over-year price increases in relation to the slowdown that hit the market at the end of last year.

Windermere’s Chief Economist Matthew Gardner remarked on this trend. “Historically, the number of homes for sale slows in August,” he said. “Where sales did occur, prices rose between July and August in King and Pierce counties.” Gardner also described these conditions as “very unique times” in the housing market.

While these conditions may be challenging to navigate, sellers are still finding success with correctly-priced listings. New listings are attracting multiple offers and often sell over list price. Buyers who come prepared with strategic offers and a willingness to waive contingencies can break into the market with the guidance of a savvy broker.

King County was one of the regions that saw year-over-year price gains. The median price for a single-family home rose 0.7% from $899,999 in August 2022 to $906,250 last month. Condos saw even bigger gains, likely due to their better affordability for new homebuyers. The median price for condos in August was $525,000, up 8.25% from $485,000 the same time a year ago.

The Seattle market hasn’t quite caught up to its pricing from this time last year. There, the median price for single-family homes in August was $899,000, down about 3% from $927,000 in August 2022. On the other hand, the condo market saw a 10.5% price increase year-over-year, rising from $520,000 in 2022 to $575,000 last month.

Eastside median sold prices fared better. After a somewhat sluggish summer in terms of pricing, last month the median price for single-family homes rose to $1,453,000. That’s an increase of 7.6% from $1,350,000 in August 2022. Condos in the area also saw price growth, with median sold prices increasing 5.4% from $569,000 last year to $600,475 in August.

Like Seattle, Snohomish County also hasn’t caught up to its 2022 prices, though this is likely because the county had fewer fluctuations in the last year and may be experiencing the typical end-of-summer slowdown that is common in the housing market. There, the median price for single-family homes was down 2.6% from $749,999 last August to $730,563 this year. The condo market was virtually unchanged in pricing, increasing from $474,999 in August 2022 to an even $475,000 last month.

In all the areas mentioned above, condos generally saw the most notable price gains. This is likely due to their greater affordability for first-time homebuyers and those in the median price-bracket. With interest rates still fluctuating, many buyers are rethinking their plans and may be pivoting to the condo market, thus driving up demand and prices.

Matthew Gardner sees the current real estate market as still “lack[ing] direction,” due to the ongoing interest rate issues. He says “it likely won’t find its footing until mortgage rates start to pull back, which I expect to see as we enter the fall months – and assuming the U.S. economy continues to moderate.”

The remainder of the year will set the tone for how the market looks in 2024. Until then, your Windermere broker can help you navigate these changing conditions and find a strategy that’s best for your buying or selling journey.


EASTSIDE

VIEW FULL EASTSIDE REPORT


KING COUNTY

VIEW FULL KING COUNTY REPORT


SEATTLE

VIEW FULL SEATTLE REPORT


SNOHOMISH COUNTY

VIEW FULL SNOHOMISH COUNTY REPORT


This post originally appeared on GetTheWReport.com.

For Home OwnersFor SellersKari's Blog September 6, 2023

If You’re Renovating Your Home, This Guide is for You

The Kari Haas Real Estate Team has a genuine desire to help you achieve your real estate goals while negotiating smartly to protect your best interests. Connect with us today to learn more!

Home renovations can be exciting and rewarding, but they can also be overwhelming. There are so many things to consider when planning one, from the budget to the timeline to finding the right contractors. Today, the Kari Haas Real Estate Team walks you through everything you need to know about home renovations, from start to finish.

Home Renovation Options

There are nearly limitless possibilities when it comes to home renovations. Some common types of home renovations include:

  • Kitchen renovations: Limitless Renovations points out that a new kitchen can add both value and functionality to your home. When planning a kitchen renovation, be sure to consider the layout, appliances, countertops, and backsplash.
  • Bathroom renovations: A bathroom renovation is a great way to update an outdated space or add an extra bathroom to your home. When planning a bathroom renovation, be sure to consider the layout, fixtures, tile, and lighting.
  • Whole-house renovations: A whole-house renovation is a big undertaking, but it can completely transform your home. When planning a whole-house renovation, be sure to consider the layout of each room, the flow of the house, and how all of the spaces will work together.

 

The Need for a Home Warranty

It’s important to get a home warranty when your renovation is complete. But does the cost of a home warranty pencil out? This type of insurance will cover repairs or replacements of items in your home that break down due to normal wear and tear. This can save you thousands of dollars in unexpected repairs down the road, overriding the initial cost of the insurance itself.

You only need some basic information to determine what the costs are to add a warranty to your home, like the square footage and the plan type you’re interested in. Factor this cost into your overall budget to protect yourself after the remodel.

A Home Office Addition

One popular type of home renovation is adding a home office. With more and more people working from home these days, it’s no surprise that this is a popular trend. When adding a home office, be sure to consider the layout, furniture, and storage needs. And don’t forget about lighting! Make sure your office has plenty of natural light so you can avoid eye strain.

Your Contractor Is Your Ally – Choose Wisely

One of the most important things you can do to ensure that your renovation goes smoothly is to find a reputable contractor. A good contractor will be able to take your vision and turn it into reality while also staying on budget and on schedule. Furthermore, a reputable contractor will be honest and transparent, letting you know if there are any potential problems with your plans. Finally, a good contractor will have a strong team of experienced workers who will be able to complete the job quickly and efficiently.

Clearly Conveying Your Ideas

One of the most important things you can do during a home renovation is communicate your ideas clearly with your contractor (or contractors). Be as specific as possible about what you want — and don’t be afraid to ask questions if you’re unsure about something. After all, it’s your home, and you should love the final result!

Budgeting for Your Home Renovation

One of the most important aspects of any home renovation is budgeting — Houselogic.com notes that you need to know how much money you have available to spend on your project. Estimating costs can be tricky, so be sure to get multiple estimates from different contractors before making any final decisions. You should also factor in unforeseen costs like permits or materials that end up being more expensive than expected.

Take the time to set up a digital filing system. You’ll find that it helps you to keep track of your budget, schedule, contact information, warranties, and anything else that comes up during your renovation. Once you have the files digitized, you can easily combine them using a free merge tool; you can use this to combine PDFs in just five quick steps.

Negotiating a Timeline

Once you’ve settled on a budget and estimated costs, it’s time to establish a timeline and schedule for your project. Be realistic about how long it will take and factor in buffer time for unexpected delays or setbacks. You should also coordinate with your contractor(s) to ensure that their schedule works with yours. The last thing you want is for your contractor(s) to show up when you’re not ready!

Essential Contractor Apps

Last but not least, let’s talk about contractors — specifically, the apps or software they use during construction projects (like yours!). Some common apps or software used by contractors include: project management software, accounting software, communication tools, time tracking software, and scheduling software. These can all lead to a better overall remodel experience.

What If You Decide to Sell?

Once you’ve finished your renovations, you might decide to sell. Or maybe you’ll even enjoy the process so much that you’ll decide to get into house-flipping. Obviously, location matters a great deal, so research your local market to get a feel for how lucrative this new venture can be!

Move Forward with Purpose

Now that we’ve gone over some key things to expect during a home renovation project, you should have some peace of mind as you begin planning your own project. It can seem like a lot, but with the right attitude (and contractor!), you can achieve a successful remodel.

 

Image via Pexels

This post was written by Michah Norris for the Kari Haas Real Estate Team blog.

For Home Owners July 25, 2023

How Smoking Can Affect a Home’s Value and How to Mitigate This

Smoking in the US has hit an all-time low in recent years, but millions continue to smoke to this day. Most smokers in America use around six to ten cigarettes daily. With smoking in public laws becoming much stricter across the country, more smokers are choosing to smoke at home. However, this convenient solution has negative impacts not only on health but on houses as well. Cigarette smoke can linger in the interior of your home, decreasing its value and making it harder to sell. Here’s how smoking can affect a home’s value and how to mitigate this:

Why smoking devalues a home

Persistent stains and smells

Constant smoking in the home leaves behind yellow stains on walls, carpets, and furniture due to cigarette tar and nicotine. This dramatically affects your home’s value as many people would be less likely to purchase a home with an unsightly look from smoking, especially if they will be forced to pay extra for the renovations. The smell of smoke also lingers in rooms for a long time, affecting air quality and the home’s living environment. The build-up of smoke can even get into your home’s ventilation systems and may need to be replaced if too damaged. Potential buyers may not be happy about your home’s condition, which can keep property value low and drive people away.

Health risks

The effects of smoking in your home don’t go away even if you sell the house. Insights from the National Insititute on Drug Abuse highlight that chemical residue from smoking can linger on surfaces even after smoke has cleared; this phenomenon is called thirdhand smoke, and it still poses many health risks to people who may inhale fumes or touch stained parts of the property. These issues can turn potential buyers off from purchasing your home, especially if lingering toxins can complicate existing health issues and affect new house residents. It also takes a lot of time, effort, and money to replace and repair contaminated items, which is both a hassle to you and the buyer and increases the liability of the sale.

How to preserve your home’s value

Try smokeless alternatives

If you still want to get a dose of nicotine in your home while preventing stains and smells from worsening, smokeless and tobacco-free nicotine products like patches, gums, and pouches are a great alternative to cigarettes. Nicotine pouches tucked between the gum and upper lip are one of the newer alternatives to hit the US market, with brands such as ZYN growing in popularity. Prilla’s deep dive into ZYN pouches outlines how they are tobacco-free and are made with food-grade fillers, nicotine salts, flavorings, and artificial sweeteners instead. You also have the option to choose from flavors like mint, citrus, and coffee and pick from different nicotine strengths like 3mg and 6mg to suit your preferences. Nicotine lozenges are similarly new products and are increasingly available on store shelves. Perrigo’s coated mint nicotine lozenges have recently gained FDA approval, allowing for more convenient options to keep your house smoke-free.

Maintain cleanliness

Cleanliness is crucial for any home and keeps stains and smells at bay. While it may not get rid of them completely, routine cleaning will help ensure your house doesn’t get too damaged and devalued. Cleaning your furniture, walls, floors, and ceilings should be done as much as possible; you can use ingredients like white vinegar or dish soap and baking soda solutions to scrub these areas spotless. You can also enlist the help of professionals to get a deeper cleaning now and then. Our Ultimate Spring Maintenance Checklist post notes that checking your HVAC systems and inspecting your windows and doors are good to do every year. However, you may want to do that more regularly if you’re a smoker to ensure these aren’t too damaged.

Quit smoking

Without a doubt, one of the best things you can do for your house and health is to quit smoking. You can clean your home as often as you want, but it won’t be effective if you continue to smoke. By reducing the smoke in the house, you can prevent stain and smell build-up and minimize harmful toxins. These things can stay in a property for a long time, but quitting smoking can ensure you don’t worsen these issues. Kicking the habit also improves your health drastically and will increase the chance of potential buyers purchasing your home.

 

If you have any questions about maintaining your home and it’s value or how to mitigate smoke damage or other types of damage, give Kari a call. We are here to help!

 

This post was written by Samantha Wise for the Kari Haas Real Estate Team blog.

Real Estate Market Updates & Insight July 18, 2023

July 2023 Real Estate Market Update

This summer’s local housing market is seeing low inventory feed higher prices, putting the squeeze on would-be buyers. June is typically the month where home prices reach their apex, and last month was no exception as King and Snohomish counties’ prices neared the peaks seen during the sugar high of the pandemic market.

Approximately 80% of recent transactions have been in the more affordable and mid-price ranges, which are nearly sold out at the moment. Because of this, multiple offers and offers over list price were more prevalent in June’s closed home sales than at any other point this year.

Windermere’s Chief Economist Matthew Gardner addressed the inventory shortfall. “The number of homes for sale in the Central Puget Sound area in June was down 48% from the same month in 2019 (pre-pandemic),” he said. “I believe much of the reason for this is that almost 33% of in-state homeowners have mortgage rates at or below 3%, and 87% of owners have rates below 5%. There is little incentive to list your home for sale if you don’t have to.”

In King County, the median sold price for a single-family home landed at $935,000 in June. This is just a notch below the median price of $938,225 in June 2022. The scarce inventory has caused buyers to compete more aggressively and sellers to list higher, thus leading to comparable peaks as the pandemic market in the summer of 2022. Likewise, condos were up from $525,000 in June 2022 to a median of $529,975 last month.

In Seattle, June’s median sold price for a single-family home was $930,000, down 7% from June 2022. Condo prices in the city were up year-over-year, with a median price of $550,000—an increase from $538,700 last June. This jump could be due in part to rising residential prices pushing some buyers into the more affordable condo market.

The Eastside, meanwhile, is seeing sales activity slow because of extremely limited supply. The level of new inventory coming onto the market is just 44% of the 10-year average. As a result, median prices have held strong. In June, the median sold price for an Eastside single-family home was $1,450,000, barely off last June’s mark of $1,500,000.

In Snohomish County, the median price for a single-family home last month was $774,975, down from $799,950 in June 2022. Condos actually saw a year-over-year price increase, from $500,000 last June to a median of $506,000 last month. The strength of Snohomish County condo prices is likely tethered to low inventory—there is just over a two week-supply of condo units in the area.

Economist Matthew Gardner notes that “Sale prices in King and Snohomish counties rose for the fifth consecutive month and are only modestly lower than a year ago. It will be interesting to see if this trend can continue given the stubbornly high mortgage rates.”

Despite the high-interest rates and scant supply, buyers who are educated on the market and working with a trusted broker should be able to navigate these changing market conditions. For more information on how you can make the most of your real estate endeavors, reach out to your Windermere broker.


EASTSIDE

VIEW FULL EASTSIDE REPORT


KING COUNTY

VIEW FULL KING COUNTY REPORT


SEATTLE

VIEW FULL SEATTLE REPORT


SNOHOMISH COUNTY

VIEW FULL SNOHOMISH COUNTY REPORT


This post originally appeared on GetTheWReport.com.

Real Estate Market Updates & Insight June 27, 2023

June 2023 Real Estate Market Update

The more frenetic activity of a typical spring real estate market has certainly hit our area, with buyers out in droves looking for homes. What they’ve found, however, is high competition and scant listings. The region’s low housing inventory has been a constraint that has resulted in fewer closed sales than we’ve seen in recent spring markets.

According to real estate experts, housing supply and interest rates are the defining obstacles for buyers at the moment. On the Eastside, active inventory is only 32% of the 10-year average, and new listings are off 34% year-to-date. This is driving prices up, while interest rates put a damper on what buyers can afford. While recent demand has been strong, experts expect that demand will taper off as interest rates approach the 7% mark.

However, because inventory is so scant, sellers who adequately price their homes are seeing success in this market. As an example, around 44% of properties on the Eastside are selling above their asking price, at an average of 5% over list. Anecdotally, the homeowners who are most likely to sell at the moment are those who purchased before the historic low-interest rates of the pandemic or have paid off their homes and are thus mortgage-free. Buyers in this market also have some negotiating power, having successfully negotiated pre-inspections, homeowner warranties, and seller-paid closing costs to mitigate the high rates.

In King County, with just shy of one month’s inventory, competition in the area is fierce, and buyers will need to be ready to negotiate when the right listing comes along. The county’s median sold price for a single-family home dropped almost 9% year-over-year, from $998,888 in May 2022 to $910,000 this year. However, that’s still an increase from April’s median of $875,000.

Seattle had a similar low inventory, at one month’s supply. The median sold price for single-family homes rose from $886,000 in April to $905,125 last month. While there’s been continued monthly price growth so far this year, May’s median sold price was still down 11.7% from the median of $1,025,500 in May 2022. Although residential inventory is tight, buyers in the city may have more luck with condos, which are both more affordable and plentiful. The Seattle condo market currently has almost two months of inventory and a more reasonable median price of $550,000.

Like Seattle, the Eastside has just one month of inventory at the moment. However, higher interest rates are being felt a little more in this pricier area, as May’s median sold price for a single-family home did not change from April’s median of $1,450,000. This is down 8.8% from the median of $1,590,000 in May 2022. The supply of Eastside condos is lower than the residential supply, with just .8 months’ inventory. At a median sold price of $582,000 last month, condos may be a slightly easier path to homeownership for those searching on the Eastside.

Finally, Snohomish County saw month-over-month price gains in May, landing at a median sold price of $780,000 for a single-family home, up from $767,500 in April. May’s median price was down 8% from $782,000 in May 2022. The county’s more affordable price points may allow for better appreciation in the area, despite the continued higher interest rates that have stifled other local markets. With just two weeks of inventory, the Snohomish County condo market is the tightest regional market at the moment. The median price for condos in the area is $544,900, down less than 1% from $550,000 in May 2022.

As buyers and sellers navigate continued low inventory and high-interest rates, they both must be comfortable negotiating terms to achieve the best possible outcome. Buyers should be ready to move fast and bring as much cash as possible, while sellers should be cognizant of the burden higher rates can create and price their listings accordingly.

If you have questions about these housing market trends or real estate, please give the Kari Haas Real Estate Team a call.


EASTSIDE

VIEW FULL EASTSIDE REPORT


KING COUNTY

VIEW FULL KING COUNTY REPORT


SEATTLE

VIEW FULL SEATTLE REPORT


SNOHOMISH COUNTY

VIEW FULL SNOHOMISH COUNTY REPORT


This post originally appeared on GetTheWReport.com.

For BuyersFor Home OwnersFor SellersKari's BlogReal Estate Market Updates & Insight May 11, 2023

May 2023 Real Estate Market Update

As the weather warms, so too does our real estate market, it seems. With dwindling inventory and climbing prices, the housing market is on an upswing, even if it’s a small one. This places sellers back in the driver’s seat, with buyers forced to compete against multiple offers and in the face of higher interest rates than last spring.

The evidence for the market’s positive growth can be found in higher median closed sales prices, an increased percentage of multiple offers, and a higher median percentage paid above the original asking price. At this point, the primary constraint on the market is a lower number of active listings. Many sellers are reluctant to part with their historically low-interest rates from the pandemic years, and with volatile interest rates, it’s an understandable predicament.

The lower number of available homes on the market has contributed to rising prices as buyers compete for a limited pool of properties. This trend often leads to multiple offers and bidding wars, further increasing prices.

For those buyers who do decide to jump into the fray, interest rates remain a key factor in determining their buying power. For the last few months, activity in the market has ticked up when rates dip, but some buyers are willing to face higher interest rates with the plan of refinancing when rates settle.

Even with that in mind, interest rates can have a huge impact on a buyer’s price bracket. For example, the median Seattle home price has declined by about 13% ($133,950) year-over-year. However, the increase in interest rates has offset this reduction. As a result, the median monthly mortgage payment remains around $5,507, which is comparable to the payment amount from a year ago — despite a lower median sold price.

Although home prices in our region may be lower year-over-year, prices have generally been increasing each month this year. In King County, April’s median single-family home price was $875,000. That’s down 12.6% from last April’s $995,000 but up from a median of $840,000 in March. A single month of available inventory means competition for homes is tight throughout the county.

In Seattle, April’s median price for a single-family home was $886,000 — down quite a bit from the same month last year, when the median price was $1,019,950. However, prices were up from a median of $869,975 in March, and a low inventory of just over a month’s supply means demand is still high, and prices are likely to keep inching upward. Condo prices in the city were actually up year-over-year, with a median sold price of $539,000 in April, compared to $512,500 in April 2022.

The Eastside also saw month-over-month price growth in April, with the median price for a single-family home landing at $1,450,000. This is up from $1,411,500 in March. Despite a 15% decrease in year-over-year prices, the current monthly price growth trend is notable. It’s likely we will not see the exponential price increases of the pandemic again anytime soon, making slow, steady growth the norm once again. The Eastside also has about one month of inventory for single-family homes, making it once again a competitive market.

Finally, Snohomish County saw month-over-month price growth in April as well. The median price of a single-family home was $767,500, up from $724,000 in March. With less than one month of available inventory, the housing market in Snohomish County is trending warm-to-hot. Condos in the county had the tightest inventory of any market, with less than two weeks’ supply. That, combined with April’s median sold price of $544,900, makes the Snohomish County condo market a competitive market for buyers to break into.

If you have questions about these housing market trends or real estate in general, please reach out to Kari (206)719-2224


EASTSIDE

VIEW FULL EASTSIDE REPORT


KING COUNTY

VIEW FULL KING COUNTY REPORT


SEATTLE

VIEW FULL SEATTLE REPORT


SNOHOMISH COUNTY

VIEW FULL SNOHOMISH COUNTY REPORT


This post originally appeared on GetTheWReport.com.

For BuyersFor Home OwnersFor SellersReal Estate Market Updates & Insight April 28, 2023

Q1 2023 Western Washington Gardner Report

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 Kari Haas (206)719-2224.

REGIONAL ECONOMIC OVERVIEW

The pace of employment growth in Western Washington continues to slow. The region added only 90,340 new jobs over the past 12 months. That said, the annual pace of employment growth was a respectable 3.6%. Three counties have not recovered completely from their pandemic job losses: Whatcom, Skagit, and Snohomish. However, they are short by just under 10,000 jobs, which should be recovered by this fall. Regionally, the unemployment rate in February was 4.1%, marginally above the 3.8% level of a year ago. The employment outlook has improved modestly, with the likelihood of a recession in 2023 down to about 50%. That said, I expect the pace of job growth to continue to slow as businesses remain concerned about a contraction in consumer spending and facing tighter credit conditions following recent bank failures.

WESTERN WASHINGTON HOME SALES

In the first quarter of the year, 10,335 homes were sold. This was down 30.9% from the same period in 2022 and 18.9% lower than in the fourth quarter of 2022.

Lower sales activity was more a function of the limited number of homes for sale than anything else. Listing activity in the first quarter of 2023 was down 43% from the final quarter of 2022.

Home sales fell across the board compared to the same quarter of last year and were lower in every county compared to the final quarter of 2022.

Pending sales rose in all but three counties compared to the fourth quarter of 2022. This suggests that sales in the year’s second quarter may tick higher. That said, the region is in dire need of more inventory.

WESTERN WASHINGTON HOME PRICES

Home prices fell an average of 6.9% compared to the first quarter of 2022 and were 1.3% lower than in the fourth quarter of 2022. The average home sale price in the first quarter of 2023 was $692,866.

Compared to the fourth quarter of 2022, prices were higher in Kitsap, Skagit, Lewis, San Juan, and Whatcom counties.

Even though prices fell in the region, five counties saw sale prices rise modestly from the first quarter of 2023.

It’s worth noting that median listing prices rose in all but two markets compared to the previous quarter. This suggests that sellers are getting a little more comfortable with the market. If listing prices continue to rise, one can surmise that home prices will follow suit.

MORTGAGE RATES

❱ Rates in the first quarter of 2023 were far less volatile than last year, even with the brief but significant impact of early March’s banking crisis. It appears that buyers are jumping in when rates dip, which was the case in mid-January and again in early February.

❱ Even with the March Consumer Price Index report showing inflation slowing, I still expect the Federal Reserve to raise short-term rates one more time following their May meeting before pausing rate increases. This should be the catalyst that allows mortgage rates to start trending lower at a more consistent pace than we have seen this year. My current forecast is that rates will continue to move lower with occasional spikes and that they will hold below 6% in the second half of this year.

DAYS ON MARKET

It took an average of 56 days for a home to sell in the first quarter of this year. This was 32 more days than in the same quarter of 2022 and 16 days more than in the fourth quarter of last year.

King County remains the tightest market in Western Washington, with homes taking an average of 41 days to sell. Homes in San Juan County took the longest time to sell.

Market time rose in all counties contained in this report compared to the same period in 2022 and compared to the fourth quarter.

The greatest increase in market time compared to a year ago was in Grays Harbor County, where homes took an average of 41 more days to sell. Grays Harbor County also saw the greatest increase in market time compared to the final quarter of 2022 (from 46 to 76 days).

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.

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.

Although the regional economy is still expanding, it shows signs of slowing. With the probability of a national recession this year now fifty-fifty, I do not see any reason for buyers to lose confidence in their housing decisions based purely on economic factors. Sellers appear to be a little more confident in the market, as shown by rising listing prices. Periods of lower mortgage rates and the lack of homes for sale are likely contributors to this. Whatever the case, I am not seeing any signs of panic in the market.

Even in the face of higher financing costs, low inventory levels support home values, and the data suggests that the worst of the price declines are now behind us. The region had fewer sales, modestly lower prices, and higher average days on market, all favoring home buyers. However, lower inventory levels, higher pending sales, higher listing prices, and a higher absorption rate of homes for sale favor sellers. As such, I am moving the needle towards a balanced market, but one that ever so slightly favors sellers.

 

ABOUT MATTHEW GARDNER

Matthew Gardner - Chief Economist for Windermere Real Estate

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.

For BuyersFor Home OwnersFor SellersReal Estate Market Updates & Insight April 12, 2023

April 2023 Real Estate Market Update

Spring has truly arrived in our region, with longer days and blooming cherry blossoms. Along with these harbingers of the season, the pace of the local real estate market has also picked up, indicating that the spring market is finally here. An uptick in new listings and price gains in the last month demonstrates a typical seasonal pattern, and buyers and sellers are adjusting their strategies accordingly.

According to Windermere’s Chief Economist Matthew Gardner, the total inventory in King, Snohomish, and Pierce counties grew over 14% from February. However, the number of homes for sale in the tri-county area was down about 40% when compared to pre-pandemic stats from March 2019. This gives sellers the advantage when it comes to setting prices for their listings.

Gardner noted this as well. “Despite the growing number of available homes for sale, sellers in King County are holding firm, with listing prices increasing by over 5% compared to February. In Snohomish County, listing prices were up just shy of 5%,” he said.

While the monthly increase in listings is good news for buyers, fluctuating interest rates and steadfast prices from sellers mean some borrowers are getting creative with their financing. Bridge loans, home equity loans, and purchases contingent on the sale of the buyer’s previous home are coming back into circulation.

These factors and more are that buyers are eager to take advantage of the market when interest rates dip down to more comfortable levels. As rates continue to fluctuate and gradually level off, prices may once again become the major determining factor for which listing a buyer may pursue.

In King County, the median price for a single-family home rose about 4.8% from $800,000 in February to $840,000 last month. While that’s still down 9.68% from the median price of $930,000 in March 2022, steady price growth in the face of higher interest rates is certainly notable. With about one month of inventory, the ball is still in the sellers’ court, despite lower year-over-year prices.

Seattle followed a similar pattern. The median price for single-family homes dropped 10.3% from $970,000 in March 2022 to $869,975 last month. However, that’s an increase of over 5% from February’s median price of $825,000. The condo market saw year-over-year gains of 4.9%, increasing from a median price of $510,025 in March 2022 to $535,000 last month. The residential market still had relatively tight inventory at about 1.1 months’ supply. However, compared to the scant .3-month’s supply of March 2022, buyers seem to have their pick of listings.

The Eastside saw the greatest year-over-year price decrease, which is to be expected considering the already high price point of the area. While the median single-family home price decreased almost 17% from $1,700,000 in March 2022 to $1,411,500 last month, the area did see monthly gains; the median price increased just over 5% from $1,340,000 in February. Condos in the area also had monthly increases, from a median price of $540,000 in February to $585,000 last month.

Snohomish County — while still more affordable than its neighbors — was up compared to February. Last month, the median price for single-family homes in the area was $724,000, up from $690,560 in February. The area had the smallest relative year-over-year price decrease of 9.5%, coming down from a median of $800,000 in March 2022. With just .8 months of inventory, Snohomish is still a desirable area for buyers looking to get the most bang for their buck.

Over the last few weeks, tapering interest rates have brought buyers back to the market, but low inventory remains a key challenge for prospective buyers moving forward. If you’d like to learn more about what these market conditions mean for you, please reach out to Kari at (206)719-2224


EASTSIDE

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KING COUNTY

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SEATTLE

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SNOHOMISH COUNTY

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This post originally appeared on GetTheWReport.com.

For BuyersFor Home OwnersFor SellersReal Estate Market Updates & Insight March 10, 2023

March 2023 Real Estate Market Update

A recent surge in purchase activity indicates that the early spring real estate market is in full swing in our region. Fluctuating interest rates have caused some buyers to converge on properly-priced listings when rates are down, while potential sellers have been hesitant to let go of the historically low mortgages they have on their homes. This has led to a well-known dynamic in our region: not enough inventory to meet the current demand, causing buyers to compete again in multiple offer scenarios. The likely effect of this push-pull will be higher prices in the coming months, despite the constraints of higher (and unpredictable) mortgage rates.

The current interest rate environment is the difference between the level of competition the market is experiencing now and the frenzy of the pandemic market. Buying power is lessened by higher mortgage payments, and with rates still in flux, creative financing is key for many buyers.

That being said, Windermere’s Chief Economist Matthew Gardner notes buyers are eager to take advantage of brief dips in rates when they appear. “What is interesting is that home prices rose between January and February, which tells me that buyers jumped on the opportunity to take advantage of mortgage rates that dipped below 6.1% five times between mid-January end early February,” Gardner said.

In King County, single-family home prices did rise from $781,098 in January to $800,000, though that’s down 6.7% from $857,750 in February 2022. Condos were also up, with a median price of $468,500 last month compared to $450,000 in January.

Seattle followed the same pattern, with the median price of single-family homes rising from $803,750 in January to $825,000 last month. While that is still down 11% from $925,000 this time last year, interest rates have played a large part in what buyers can reasonably afford. In the last two years alone, the median interest payment for a single-family home has risen 54%, from $3,283 in February 2021 to $5,085 — an increase of $1,802. Despite this, demand is still high, as buyers do what they can to break into the market. In February, 28% of Seattle homes sold above list price, and 53% of listings sold in under two weeks.

On the Eastside, the median price of a single-family home last month was $1,340,000 — down over 21% from a year ago, when the median was $1,697,500. However, February sold prices were up from January when the median was $1,320,000. A sure sign that the Eastside market is becoming more competitive, in the last three months, both the number of homes selling above the asking price and the amount over list price have doubled.

In Snohomish County, the median price for single-family homes fell 7.4% year-over-year to $690,560. Unlike the other regions, that’s also down from January’s median price of $699,000. The higher interest rates could be causing more buyers in this market to pause as they wait for prices and rates to stabilize. The relative affordability of Snohomish County has long been a draw for many buyers, who now may be more sensitive to the fluctuations of the market.

Looking ahead, Matthew Gardner predicts we will see more of the same trends. “Year over year, home sales prices are down, but that isn’t surprising given that a year ago, homebuyers were scrambling to buy in the face of mortgage rates that were about to skyrocket,” he said. “I expect we will see a similar story for the next few months.”

If you have questions about what these market conditions mean for you, please give the Kari Haas Real Estate Team a call!


EASTSIDE

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KING COUNTY

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SEATTLE

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SNOHOMISH COUNTY

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This post originally appeared on GetTheWReport.com.