EYE ON THE MARKET (REAL ESTATE SEPTEMBER 2021)

The summer market is coming to a close and change is in the air as fall approaches. For homebuyers, this change is most apparent in the reduced competition among homebuyers. There has been evident relief with homebuying pressure since brokers are not seeing as many offers per listing compared to the spring. NWMLS statistics show there were fewer pending sales this past month than during each of the previous two months. In fact, July’s pending sales were down 8.8 percent compared to July of last year. The local markets are still relatively active however with robust buying activity and a shortage of inventory. This has again been reflected in a price increase for homes in most countries.

The Northern MLS data shows double-digit closed sales prices and escalations were widespread across most countries when compared with the same month a year ago. In King County prices were up by 19.73 percent, in Pierce County up by almost 20 percent, in Thurston County up by almost 21.73 percent and in Spokane County up by nearly 34.9 percent (Spokane Association of REALTORS). Brokers predict that housing prices will continue to rise with the perfect storm of historically low-interest rates and a less than a one-month supply of available homes throughout the region. There is also a lack of new construction coming on the market which is limiting the availability of newly built homes and further driving up prices.

The end of summer historically is the last time of the year with elevated levels of new listings before they slowly taper down. That is why some brokers predict the slowdown is temporary and will ramp back up in the coming months. Some of the decrease in the real estate activity has also been attributed to people taking vacations, warm weather allowing for other distractions, and lifted COVID-19 restrictions. It will be interesting to see if the slowdown will be short-lived or continue into the fall as inventory remains tight and prices continue climbing.

Be sure to call us at 360-918-3405 if you have any questions about this report or about how the market is performing.