NWMLS July 2022 Market Update

Dated: August 7 2022

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✨The latest market update from NWMLS is out and has confirmed reports of a shifting housing market, prompting one industry leader to suggest that "all parties involved in a transaction today have to recalibrate."

Commenting on the "many moving parts" of the market and the need to recalibrate, Dick Beeson, managing broker at RE/MAX Northwest Realtors in Gig Harbor said sellers "are starting to see that overpricing just ain't in the cards right now." He also noted buyers still have to compete with other would-be homeowners, and depending on the property, some sellers are receiving offers over their asking price. "Buyer and seller expectations have changed. It feels like things are starting to normalize a little," Beeson remarked.

✅ Evidence of slower activity appears in the sales figures. Pending sales retreated about 24% from a year ago and the NWMLS report shows a nearly 30% year-over-year decrease in closed sales (declining from 10,919 closings to 7,645). 

✅ Despite fewer sales, prices still rose, but at a slower rate. The median price on last month's closed sales of single-family homes and condos increased 6.1% from a year ago, rising from $589,000 to $625,000. For single-family homes only (excluding condos), prices jumped about 6.6% and condo prices gained more than 8.6%.

✅ "Today's buyers have their cups finally overflowing with options as residential inventory grows to about two months of supply," said Dick Beeson, managing broker at RE/MAX Northwest Realtors in Gig Harbor. The MLS report summarizing July statistics shows 2.01 months of inventory system-wide. 

Inventory of single-family homes and condominiums across the 26 counties served by Northwest MLS has not exceeded two months since January 2019 when there was 2.3 months of supply.

✨Takeaways :

A check of Northwest MLS statistics illustrates Scott's point. Sellers in half the 26 counties accepted full price or above asking price offers. Based on the sales price to list price ratio, sellers of homes in Thurston County received 103.1% of their listing price to top the list. The other 12 counties where homes sold at or above the list price were Chelan, Clark, Cowlitz, Franklin, King, Kitsap, Mason, Pierce, San Juan, Skagit, Snohomish, and Whatcom. 

The market balance is favoring buyers, reported Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. "After experiencing multiple offers, shrinking inventory, or not being able to include inspection or financing contingencies with their offers, buyers now have choices," he explained.

Noting King County had about seven weeks of inventory at the end of July (1.86 months) - about double May's supply (0.83 months) - Rebhuhn described sales as "very good," but said savvy sellers are making certain their homes are "priced right to win the sale. Overpriced listings have missed the market."

Lennox Scott reported some buyers around Puget Sound are experiencing "buyer gridlock," meaning they are seeking to sell their current home before getting under contract for their next property. "Home sale contingencies are a useful tool for homeowners in similar situations during this time."

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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