NWMLS Market Update April 2022

Dated: May 17 2022

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✨The latest market update from NWMLS is out and has discussed that "Rising interest rates and inflation, coupled with a slight improvement in inventory, may bring some normalcy to Western Washington's frenzied housing market."

Closed sales of homes and condos slid from a year ago, from 8,791 to 8,344 for a drop of around 5.1%

✅ "Median prices on single family homes have been skyrocketing so far this year with prices for sales in King County just shy of $1 million in April," he remarked, noting that figure reflects an increase of more than 28% (+$220,000) since January.

✅ Despite the improving inventory, and in spite of rising interest rates, brokers report brisk activity and are not seeing prices ease much.

"One thing that has not been impacted by rising financing costs is home price growth," Gardner said, pointing to double-digit gains in nearly every county, "including a whopping 27% in Snohomish County, the highest by far in the four-county Puget Sound region."

✅ The NWMLS report shows there were about three weeks (.78 months) of inventory of single-family homes and condos combined at the end of April. By this metric, that is the highest level in nearly 18 months. MLS data show there were .80 months of supply in October 2020. 

✨Takeaways :

Commenting on a new Northwest MLS report summarizing April activity, J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noted a "slight increase" in unsold properties, adding, "Not all homes are selling within the first week on market." He believes the "intensity adjustment means multiple offers will not be as commonplace as they've been in the last two years." He also indicated premium pricing (above the asking price) is softening as well. He expects the "normal seasonality in the real estate market will be more pronounced, bringing a bit of normalcy to home buyers and sellers," but believes there will still be an "elevated buyer focus on each new listing."

Only two counties, King and Jefferson, had year-over-year drops in inventory. "Unfortunately for King County buyers, the area is still desperate for inventory and competition is as fierce as ever," remarked Matthew Gardner, chief economist at Windermere Real Estate.

Area-wide prices for single-family home sales (excluding condos) in King County also increased, climbing nearly 20% from a year ago, from $830,000 to $995,000.

Despite the improving inventory, and in spite of rising interest rates, brokers report brisk activity and are not seeing prices ease much.

"One thing that has not been impacted by rising financing costs is home price growth," Gardner said, pointing to double-digit gains in nearly every county, "including a whopping 27% in Snohomish County, the highest by far in the four-county Puget Sound region."

Open houses are attracting "huge turnouts," with accepted offers averaging 6.2% over asking prices.

With mortgage interest rates drifting upward in anticipation of the Federal Reserve's hikes in its baseline interest rate, some brokers recommend quick action by prospective home buyers.

"We will not likely see interest rates back to 3%. Never before has it been more important to get pre-approved and get serious about finding a home as now," stressed Leach.

"Owning real estate is a hedge against rising inflation," emphasized Gardner, the Windermere economist. "Homeowners with a fixed-rate mortgage will always have the same monthly payment, even as other costs rise," he explained.

Let us know if we can answer any of your real estate questions or if you need help taking advantage of the opportunities available for you in this current housing market.

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Carmen Johnson

Co Owner of the Red Door Team Carmen has been born and raised in Snohomish. Is married, owns a home in downtown, has a Goldendoodle and is expecting her first child in April! Loves spending time with....

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