{"id":4893,"date":"2016-08-06T08:59:46","date_gmt":"2016-08-06T08:59:46","guid":{"rendered":"http:\/\/easyrealestatehelp.info\/agent\/?p=4893"},"modified":"2016-08-08T04:30:35","modified_gmt":"2016-08-08T04:30:35","slug":"western-washington-real-estate-brokers-see-early-signs-of-a-more-balanced-market","status":"publish","type":"post","link":"https:\/\/easyrealestatehelp.info\/agent\/western-washington-real-estate-brokers-see-early-signs-of-a-more-balanced-market\/","title":{"rendered":"Western Washington real estate brokers see early signs of a more balanced market"},"content":{"rendered":"

FOR IMMEDIATE RELEASE FOR INFORMATION*<\/span> <\/p>\n

\"northwest-Multiple-Listing-Service\"<\/a><\/p>\n

KIRKLAND, Washington (Aug.4, 2016) \u2013 Home prices are still rising but the supply of homes is
\nimproving, prompting brokers to suggest some relief is in sight for would-be buyers. \u201cWe might actually be starting to move very slowly back toward a more balanced market,\u201d said OB Jacobi, president of Windermere Real Estate, in commenting on July\u2019s figures from Northwest Multiple Listing Service.<\/p>\n

The MLS report summarizing last month\u2019s activity shows active listings (including single family homes and condominiums) are at the highest level since September 2015 and the volume of new listings added to inventory topped the 12,000 marked for the third consecutive month.<\/p>\n

With inventory shortages apparently easing in some areas, once-sidelined and frustrated house-hunters may be resuming their search, based on the latest statistics. Pending sales for the 23-county service area rose nearly 4 percent compared to a year ago, setting a new high for volume during July.<\/p>\n

Member brokers reported 11,657 pending sales system-wide last month, a slight drop from June when they notched 11,995 mutually accepted offers. Despite that dip, the four-county Puget Sound region had its best-ever volume of pending sales for July (8,545), eclipsing last year\u2019s record number (8,248).<\/p>\n

\u201cWe are experiencing a record breaking market,\u201d exclaimed J. Lennox Scott, chairman and CEO of John L. Scott, Inc. \u201cLast month was the best July in history in the Puget Sound real estate market. We\u2019re in a frenzy hot market with a large backlog of buyers.\u201d He credits improving inventory with spurring sales. \u201cThat additional inventory gave us the boost to not only be able to claim an all-time, best ever July, but to also position the last three months as the best in history for [pending] sales activity in the Puget Sound region.\u201d<\/p>\n

Some brokers, including MLS director Frank Wilson, expect the robust activity will slow in August as families focus on vacations and back-to-school preparations.<\/p>\n

Brokers added 12,178 new listings to the selection during July, which compares to 11,198 additions during the same month a year ago for an improvement of nearly 8.8 percent. At month end, there were 18,287 active listings for sale versus the year-ago figure of 21,069. That represents a year-over-year drop of \u201conly\u201d 13.2 percent; it\u2019s been hovering in the minus-20 ranges for most months since spring 2015.<\/p>\n

King, Snohomish and Pierce counties still have less than two months of supply, with double-digit increases in prices compared to a year ago, prompting some buyers to expand their search to outlying areas.<\/p>\n

\u201cBuyers are feeling the squeeze every day, and now, outlying areas are seeing multiple offers like the major cities have been experiencing the last two years,\u201d noted Northwest MLS director George Moorhead.<\/p>\n

Buyers are using driving apps with their searches to determine whether or not to consider a home and its proximity to their workplace, according to Moorhead, the designated broker at Bentley Properties.<\/p>\n

\u201cOur difficulty with limited inventory and multiple offers continues in Snohomish County,\u201d reported Diedre Haines, a past chairman of the Northwest MLS board. \u201cThe biggest problem right now is a resurgence of low appraisals \u2013 often between $30,000 and $35,000 below the agreed upon price.\u201d<\/p>\n

Also concerning to Haines is a tendency to forgo due diligence during competitive bidding situations,something she says she sees nearly every day. \u201cIn my opinion, sellers and buyers should not consider offers with waived financing, inspection, investigations, etc. as good offers,\u201d she stated, adding, \u201cThey should be mindful of our state\u2019s \u2018buyer beware\u2019 protections and allow buyers the time and ability to perform their due diligence.\u201d<\/p>\n

Haines, Coldwell Banker Bain\u2019s principal managing broker for South Snohomish County, said the appraisal problem is plaguing all market areas of the county, and involves different appraisers.<\/p>\n

\u201cThis is indeed a strange situation, especially when taking into consideration that most sellers are cautious in their decision to not take the highest offer \u2013 even in multiple offer scenarios,\u201d Haines remarked. She is also troubled by appraisers\u2019 current practice of using comparable properties that are only with one-half mile of the subject property, rather than the historically typical 2-to-3-mile radius, resulting in a \u201cnot good comp\u201d that sometimes leads to failed sales.<\/p>\n

One notable exception to the existence of low appraisals is new construction, according to Haines. \u201cIt continues to return to our marketplace at a slow but steady pace.\u201d<\/p>\n

\u201cOur brokers in Seattle proper, and now more broadly in King County, say sales are slowing down. With the increase in inventory, there may finally be some relief for home buyers,\u201d suggested Mike Grady, president and COO at Coldwell Banker Bain. However, he added, \u201cPrices continue to rise at impressive rates in many areas.\u201d<\/p>\n

Grady also mentioned the \u201cripple effect\u201d is continuing, with Seattle\u2019s experience of shrinking inventory and rising prices occurring in surrounding areas.<\/p>\n

The median price for last month\u2019s 9,466 closed sales of single family homes and condos (combined) was $350,000. That reflects a jump of 9.6 percent from a year ago when it was $319,250. Within the 23 counties in the report, the median price ranged from $57,950 in Ferry County to $505,000 in King County.<\/p>\n

A comparison of prices by counties shows San Juan County topping the chart. The median price on last month\u2019s sales (including single family homes and condos) was $507,500, a jump of nearly 21 percent from a year ago. That edged out King County where the median sales price of $505,000 was up 15 percent from twelve months ago when it was $439,000, but down slightly from June\u2019s figure of $510,000.<\/p>\n

For single family homes (excluding condos), the area-wide median selling price was $358,150, a 9.2
\npercent gain from a year. King County had the highest median price for single family homes at $555,000. That\u2019s a 14.4 percent year-over-year increase.<\/p>\n

Condo prices for July surged 17.3 percent from a year ago, from $260,000 to $305,000. Inventory shortages persist, with less than 1.3 months of supply area wide, and less than a month (0.90) in King County.<\/p>\n

Commenting on the market in Kitsap County, where his office is based, MLS director Wilson said there\u2019s a significant backlog of buyers. Multiple offers on new listings and steady traffic at open houses are continuing, he added.<\/p>\n

Scarce inventory and end-of-summer priorities will likely create \u201ca bit of a pause\u201d in the market, predicts Wilson, the branch managing broker at John L. Scott, Inc. Poulso. He expects vacations and back-to-school shopping will divert some prospective buyers and sellers, but come mid-September \u201cthe market will take off again until Thanksgiving.\u201d<\/p>\n

Elaborating on his comment about a possible shift to a more balanced market, Jacobi said King County \u201creally sticks out for me\u201d when looking at the entire region. Single family home inventory levels match those of a year ago, yet home sales have slowed year-over-year. \u201cPrice growth also appears to be slowing from the rapid growth that we\u2019ve become used to in recent months.\u201d<\/p>\n

Brokers who commented on the latest MLS report dismissed murmurs of a housing bubble.<\/p>\n

Wilson emphasized this market is not like it was in 2005-2007 when it was driven by speculation and loans to people who could not afford them. He believes the market\u2019s future holds two certainties: \u201cHome prices are heading up and interest rates are soon to follow.\u201d Wilson also described this market as \u201cneed driven based on an improving job market in King County as well as simple supply and demand.\u201d Remember, he added, \u201cnormal markets have adjustments . . . ours will come in a couple of years.\u201d<\/p>\n

\u201cAn imminent bubble is not likely,\u201d said Moorhead. \u201cEven though we cannot predict the future, if interest rates remain low and inventory levels remain at historic lows, a bubble is unlikely,\u201d he said.<\/p>\n

Scott expects current market conditions will continue at least into the summer of 2017. \u201cThe best
\nopportunity for homebuyers to find a home will be in the next three months,\u201d he suggested, noting new listings coming on the market historically taper off in November. \u201cBecause of the current increase in inventory, now may be a great time for buyers who were discouraged from entering the market to rethink their decision,\u201d he added.<\/p>\n

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership of nearly 2,100 member offices includes more than 25,000 real estate professionals. The organization, based in Kirkland, Wash., currently serves 23 counties in Washington state.<\/p>\n

NWMLS news release: July activity<\/span><\/p>\n

Statistical Summary by Counties: <\/strong> Market Activity Summary \u2013 July 2016<\/strong><\/p>\n