Northwest Multiple Listing Service brokers completed 10,175 sales transactions during September – the highest monthly volume since June 2018 when MLS members reported 10,072 closed sales. September’s closings also marked a jump of nearly 28% from the same month a year ago, according to the latest statistical summary from the MLS.

“I believe this significant increase speaks to sellers becoming much more confident and buyers competing more effectively, most likely due to low interest rates,” remarked Mike Grady, president and COO at Coldwell Banker Bain. “It’s as if we just completed our typical ‘spring’ market,” he added.

The new report from Northwest MLS showed a sharp year-over-year (YOY) drop in inventory (down 43% from a year ago), a robust increase (23%) in pending sales (mutually accepted offers), and a sizeable surge (19%) in prices for single family homes and condos combined.

Impacts of the coronavirus pandemic on the housing market are prevalent, according to several Northwest MLS representatives who commented on last month’s activity.

“COVID-19 has made many reflect on what their home means to them,”
remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “As a result, many people are looking to create that ideal place to call home. We are seeing a rotation of home ownership, whether that means refinancing, remodeling, or moving.”

James Young, director of the Washington Center for Real Estate Research at the University of Washington, also commented on shifting desires. “People working from home, especially those with kids being schooled at home, seek both space and value. Those who already have a home have little incentive to leave.” He described the current scenario of “too much demand and limited supply” coupled with low interest rates as “the perfect price storm.”

Brokers added 11,210 new listings to inventory during September, a healthy increase from a year ago when they added 9,435 for a YOY gain of 18.1%. Compared to August, the volume declined by 733 listings (down about 6%).

At the end of September, the supply totaled 9,099 active listings, well-below the year-ago selection of 15,982 listings (down 43%), and the lowest level since February.

The median price for homes and condos that sold last month across the Northwest MLS market area was $499,950, a hefty 19% jump from the yearago figure of $420,000. San Juan County had the highest median price at $850,000, followed by King County at $698,230.

For single family homes only (excluding condos), last month’s median price system wide was $519,864. In King County, the median price for single family homes was $753,600. Within King County, where NWMLS tracks 30 sub-areas, six of these areas had median prices over $1 million; five of those areas were on the Eastside.

Paint company Sherwin-Williams on Tuesday announced its 2021 color
of the year: “urbane bronze.” The hue is said to instill calmness and has ties to nature, Sherwin-Williams says. The color trends of 2020 ushered in a return to bolder hues, moving away from the popularity of cooler neutrals that dominated most of the 2010s. Now, Sherwin-Williams describes the 2021 choice as “bold and understated at the same time. “Urbane bronze” can work inside or out in a home, used as a primary or accent color in bedrooms, living rooms, dens, or home offices, Sherwin-Williams says.

Entry-level priced homes, which continue to be in short supply, are helping to drive strong price gains. CoreLogic says home prices nationwide, including distressed sales, increased year over year by 5.5 percent in July 2020 and were up 1.2 percent compared to the previous month. The annual increase was the fastest in nearly two years.
The company said the “one-two punch of strong purchase demand – bolstered by falling mortgage rates, which dipped below 3 percent for the first time ever in July – and further constriction of for-sale inventory has driven upward pressure on home price appreciation.”

Gina Brown (NMLS#115337)
Senior Loan Officer
425-766-5408
gina@gmgloan.com
www.loansbygina.com