Many homes selling within first 30 days in Puget Sound housing market

  • Wednesday, April 12, 2017 12:42pm
  • Business

Housing prices in the Puget Sound market continue to go up and inventory remains tight.

“It’s straight up a crazy, frenzy market in King and Snohomish counties,” said Lennox Scott, chairman and CEO of John L. Scott Real Estate in a media release about the Northwest Multiple Listing Services April Report released Thursday. “Over 75 percent of homes are selling within the first 30 days. With more buyers coming on the market, we’ve been waiting for new inventory to help replenish the inventory.

“We are heading in the right direction, as a substantial number of new listings came on in March compared to February in the four-county area of King, Snohomish, Pierce, and Kitsap Counties. In fact, new listings rose 30 percent or more in each of the four counties, but the typical March volume is down in King, Snohomish, and Kitsap Counties, with Pierce County being the only county with more new listings than a year ago. The lack of inventory is creating buyer frenzy for each new listing in the more affordable and mid-price ranges.”

The residential median home price in King County hit $599,950 in March, up 12.93 percent from one year earlier.

March sales activity is lower than previous March due to the fact that the market is virtually sold out, Scott said. The luxury market close to the job centers is red hot with multiple offers on many new listings as they come on the market.

Seller gridlock should abate later this summer for sellers who are waiting to put their home on the market. As more inventory hits the market it will be just as easy for them to purchase their next home as it is to sell their current home, Scott said.

Market overview:

New listings were down across the board in each of the NWMLS’s 24 counties compared to a year ago, but up in a big way from February, which means while we are having a slow start to spring, we are seeing positive improvement.

Pending sales were down in King, Snohomish, Pierce and Kitsap counties. Some of the smaller outlying counties saw an increase in pending sales. For example, Mason County was up 34.09 percent and Clallam County up 49.30 percent in residential and condo combined.

March 2017 market characteristics:

These market conditions will continue until at least into the summer of 2018.

1. For buyers, it continues to feel like they’re going up against multiple offer situations on every property. Sellers continue to get premium pricing for their homes.

2. In King County, the residential median home price in March 2017 was $599,950 vs. $560,000 in February.

3. The decrease in sales is not a buyer issue it’s an inventory issue.

4. The market momentum continues to be frenzy hot as we experience a slow start to the spring market.

5. We are experiencing an extreme shortage of listings available in the more affordable and mid-price ranges.

7. Luxury homes in the $1 to $3 million-range are selling in big numbers in areas near job centers. The shortage of luxury is unheard of. Sales of luxury homes in 2016 were up substantially over 2015.

8. Sales activity in King and Snohomish counties would be higher if there were more homes for sale.

9. Every new listing is getting frenzy action from homebuyers, setting up many multiple offer situations, especially in the more affordable and mid price ranges where 90 percent of sales activity is taking place.

10. Leading indicators that drive housing market:

• Job growth – predicted to lower from extremely strong back down to very strong starting in year 2017 (Puget Sound economic forecasters) From 3 percent to the 2 percent range.

• Interest rates – Interest rates have risen into the low 4s. At this level they are considered amazing on a historical basis (when interest rates were in the 3s, they were considered unbelievable).


Talk to us

Please share your story tips by emailing editor@rentonreporter.com.

To share your opinion for publication, submit a letter through our website https://www.rentonreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in Business

A young chef carefully spreads sauce onto pizza dough during a cooking class at Young Chefs Academy of Covington. Courtesy photo/YCA Covington
Kids culinary school opens in Covington

The school takes the unknown out of cooking for kids, owner Deb O’Brien said.

A new measure from the King County Council could increase flexibility for businesses in rural areas of King County. File photo
County measure would increase flexibility for businesses in rural areas

Staff report Legislation the King County Council passed June 23 could lead… Continue reading

The Landing in Renton/File photo
The Landing open in Phase 2 for businesses

Individual retailers determine reopening and operating hours

24 Hour Fitness is closing over 100 gyms, including one in Renton. Photo courtesy the Highlands 24 Hour Fitness Instagram.
Highlands 24-Hour Fitness gym will not be reopening

It is one of several gyms in region and over 100 in the country closing after 24 Hour Fitness filed bankruptcy Monday

Westfield Southcenter Mall to reopen June 15

Modified hours; safety protocols

Closure, layoffs at Mitsubishi Aircraft’s Renton headquarters.

Only a year into joining the aerospace hub of the Northwest, several hits to the commercial jet industry in 2019-2020 causes the company to scale back.

Goodwill to reopen donation centers, stores in King, Pierce counties

Including Kent, Auburn, Federal Way locations

Michelle Hankinson stands in front of the Renton Area Youth Services office in downtown Renton. While RAYS is merging with two other nonprofits, much of it remains the same. Courtesy photo RAYS.
Local RAYS joins nonprofit Childhaven

Renton Area Youth Services has been working with local families for 50 years.

New Emerald Queen Casino in Tacoma to open June 8

$400M, 310,000-square-foot facility will open with COVID-19 precautions

Photo courtesy of Gyros House Mediterranean Grill.
Gyros House Mediterranean Grill closes Friday

The restaurant, which like many has been hit hard by the impacts of the closures due to the coronavirus pandemic, is now moving to catering-only after 26 years.

Muckleshoot Casino in Auburn to reopen May 26

Face masks to be required of guests and employees

Like similar businesses across King, Snohomish and Pierce counties, Bothell restaurant Hana Sushi closed due to public-health concerns. Sound Publishing file photo
Inslee changes course, says diners won’t have to sign in

Restaurants may still ask customers for information that contact tracers could use to stop an outbreak.