South King County Quarterly Market Trends – Q2 2019

Increased pending activity is an indication of strong buyer demand which is very much being driven by historically low interest rates, a thriving job market, and an overall strong local economy. In fact, interest rates are an entire point lower than they were a year ago! This affords buyers a price point that is 10% higher over last year while maintaining the same monthly payment. A year ago, the monthly payment for a home at $500,000 is the same for a home at $550,000 today. Today’s rates coupled with tempered price appreciation provides increased affordability for buyers, which in turn is providing a healthy audience for sellers.  After many years of strong price increases, many sellers are moving their equity to the next lifestyle home they desire.

 

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Posted on October 25, 2019 at 12:00 am
Debbie Jaeger | Category: Quarterly Market Trends, South King County

South King County Quarterly Market Trends – Q2 2019

2019 provided a very healthy and more balanced spring market! Median price is up 5% complete year-over-year and up 2% from last June. Prices have started to find their balance as more inventory has come to market compared to the scarcity of years past. While buyers have had more choices over the last year, it is still a seller’s market with just 1.3 months of inventory based on pending sales, resulting in an average of 28 days on market and 99% list-to-sale price ratio in June. Low interest rates continue to drive demand, however sellers who overprice or don’t address condition issues will linger on the market.

 

Our real estate market continues to be driven by low interest rates, positive job creation, and upbeat consumer sentiment. Currently, interest rates sit around 4% which is still an historical low, affording buyers the ability to make moves and reduce their debt service. Price appreciation has started to temper to more normal rates, compared to the double-digit appreciation we experienced over the last 3 years due to more sellers coming to market. This has created more balance and greater opportunity for buyers. The generational shift we are experiencing as Baby Boomers move towards retirement and Millennials enter into their prime earning years is an exciting exchange happening in the market place right now.

 

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Posted on July 19, 2019 at 10:18 pm
Debbie Jaeger | Category: Quarterly Market Trends, South King County

South King County Quarterly Market Trends – Q1 2019

Months of inventory has reduced as we finished out the first quarter of 2019. Months of inventory is the amount of months it would take to sell out of homes if no new listings came to market. This illustrates the balance between supply and demand. We peaked at 2.9 months in September of 2018 and found ourselves at 1.2 months this March.

 

The first quarter of 2019 saw 2,306 new listings and 2,096 pending sales – demand tracked quite well with supply! It remains a seller’s market (0-3 months of inventory), but not as constricted of a market as last year, which saw an average of 0.8 months in the first quarter compared to 1.5 months this year. As we head into spring, we should see continued growth in new listings and demand will be strong, fueled by low interest rates and positive jobs reports.

 

The second half of 2018 had a large influx of homes that came to market, and an interest rate jump which created a gap between supply and demand. Buyers enjoyed some negotiations and credits in the fall and winter due to more selection, but as interest rates reduced in the first quarter, we saw demand increase. This is helping to absorb inventory and reduce the average days on market it takes to sell a home. Median price is up 7% complete year-over-year, which is still higher than the 4% norm, but much less than the unsustainable 12% gains from 2017 to 2018. This balancing out in the market has been a positive phenomenon as affordability has been a challenge for many. Both sellers and buyers are finding great opportunities in the current market.

 

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Posted on April 19, 2019 at 5:38 am
Debbie Jaeger | Category: Quarterly Market Trends, South King County

Q4 2018 – South King County Quarterly Market Trends

2018 was a year of change and growth. The market shifted from an extreme seller’s market, but still had strong gains. Year-over-year, median price is up 9% and since 2012 has increased 89%! Over the last 19 years, the average year-over-year price increase has been 6%. This puts into perspective the growth we have experienced, resulting in well-established equity levels. In 2018, inventory averaged 1.7 months, 30% more than 2017. This caused the month-over-month price gains to slow, and we experienced a price correction over the second half of the year. We expect to see more average levels of price appreciation in 2019 as the market continues to balance out.

After six years of expansion resulting in an extreme seller’s market, in 2018 we encountered a market shift in the late spring. Inventory increased, interest rates took a jump, and demand took a step back to re-evaluate the new playing field. This resulted in a tempering of month-over-month price appreciation, and has established some long-awaited balance. This balance has brought opportunities for both buyers and sellers. Buyers have more selection and are negotiating terms like inspection items and concessions. Sellers are sitting on 6+ years of equity growth, and are now able to sell their home and make a move without fearing where they will land next. Interest rates are still well below the 30-year average, currently hovering just under 5%. We are seeing demand start to re-engage now that the new normal has settled in.

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Posted on January 16, 2019 at 11:12 pm
Debbie Jaeger | Category: Quarterly Market Trends, South King County

South King County Market Trends

In September, the average days on market landed at 26 days and the original list-to-sale price ratio 98%. Since May, inventory growth has been noticeable, and has given buyers more options. This has led to more negotiations and fewer bidding wars, which is tempering month-over-month price growth to a more sustainable level. Back in April, the average days on market was 21 days and the original list-to-sale price ratio 103%; but months of inventory based on pending sales was 0.9 months, compared to 2.6 months currently. Year-over-year, prices are up 10%, still well above the historical norm of 3%-5% year-over-year gains—but note that the majority of this growth happened during the spring, due to constricted inventory levels.

Supply has increased, creating more options for buyers and helping to buffer affordability issues. Many sellers are deciding to make moves and cash in on the equity gained over the last six years. An average original list-to-sale price ratio of 98% is a positive return, yet illustrates a softening in the market after some very extreme times. With 10% price growth over the last 12-months in a seller’s favor, the increase in selection has led to more nimble moves from one house to another. Where sellers need to be careful is anticipating the month-over-month price growth we saw prior to the shift in inventory. Prospective buyers would be smart to take advantage of today’s historically low interest rates and the added inventory selection.

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Posted on October 16, 2018 at 8:47 pm
Debbie Jaeger | Category: Quarterly Market Trends, South King County

South King County Market Trends

As we head into the summer months we are seeing a healthy jump in inventory in our area. In May, we saw the biggest jump in new listings in a decade! Price appreciation has created this phenomenon, motivating many people to make big moves with their equity. In fact, prices are up 13% year-over-year. We currently sit at 1.4 months of inventory based on pending sales. This more-equal balance of homes for sale compared to the first quarter has created great opportunities for buyers, finally! While it is still a seller’s market, it has eased up a bit. The average days on market in June was 15 days and the average list-to-sale price ratio was 101%.

South King County real estate has been an affordable option compared to “in-city” real estate. In fact, the median price in June was 75% higher in Seattle Metro. Sellers are enjoying great returns due to buyers choosing to lay down roots in our area, and buyers are securing mortgages with minor debt service due to low interest rates. The easing of inventory is a welcome change and is helping to temper price growth.

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Posted on July 23, 2018 at 5:31 am
Debbie Jaeger | Category: Quarterly Market Trends, South King County

South King County Home Prices Latest Report

South King County Market Trends

It is the time of year when our market starts to take off. Spring is here and we are starting to see seasonal increases in inventory. In fact, there was a 47% increase in new listings in March compared to February. That increase was matched by a 48% rise in pending sales, illustrating very strong demand for housing in your area. Last month, the average list-to-sale price ratio (the amount the sale price topped the list price) was 101%, indicating that multiple offers were the norm. We ended the quarter with 0.7 months of inventory – the lowest level yet. More inventory would be absorbed by happy buyers looking for more selection and would help temper price growth, which is up 12% year-over-year.

South King County real estate has been a hot spot due to reasonable commute times and overall affordability compared to “in-city” real estate. In fact, the median price in March was 78% higher in Seattle Metro. Sellers are enjoying amazing returns due to this phenomenon, and buyers are securing mortgages with minor debt service due to low interest rates. This is a very strong seller’s market, but buyers who are securing a home are already enjoying appreciation in equity.

This is only a snapshot of the trends in south King County; please contact me if you would like further explanation of how the latest trends relate to you.

Posted on April 17, 2018 at 8:35 pm
Debbie Jaeger | Category: South King County

South King County Market Trends

Price growth was particularly strong in 2017! Median was up 13% and average price up 12% over 2016. Median price in 2017 landed at $405,000 and the average at $440,000. The average amount of days it took to sell a house in 2017 was 30 days which is 9% faster than 2016. The average list-to-sale price ratio over the last year was 100%, with the spring months as high as 102%! In 2017, inventory growth continued to be a challenge, with a 7% decrease in new listings compared to 2016. Even with inventory limitations there were 2% more sales! This phenomenon illustrates strong buyer demand and a need for more listings.

South King County real estate has seen a steady stream of buyers come our way due to affordability, reasonable commute times and quality of life. In fact, the median price in 2017 was 75% higher in Seattle Metro. Historically low interest rates continue to drive the market as well, they have helped offset the increase in prices. Sellers are enjoying great returns due to this phenomenon and buyers are securing mortgages with minor debt service.

Posted on February 14, 2018 at 9:24 pm
Debbie Jaeger | Category: Quarterly Market Trends, South King County