We get asked a lot, “What is the RE Market doing? Where is it headed?” We are going to take a deep dive into with our Real Estate Market is doing here in the PNW.
In the 3 graphs below we take a look at Median Sales Price, Months Inventory, and Amount of Inventory (Number of Homes for Sale) in the past 12 months. In these graphs, I target 4 Markets: King (Seattle), Gig Harbor (Pierce), Kitsap County, and Tacoma.
Median Sales Price – As you you can see – the Sales Prices in 2017 Continue to RISE! Seattle, seeing a 13.5% increase, and Gig Harbor even higher at 14.4%. Why are prices rising? The same issue we have been seeing – Shortage of Inventory.
“Home values in the Seattle metropolitan area are at a record-breaking high, according to a report last week by real estate and rental listing service Zillow.
They place the Seattle area’s median home value at $420,200—Zillow tells us that’s the highest it’s ever been. For Seattle alone, that jumps to $624,700.
See full article, here: http://seattle.curbed.com/2017/3/28/15085436/high-home-values-low-inventory
Inventory – Months Supply
The biggest issue and the major factor in increasing sales prices is this – supply. Supply VS Demand – Our Seattle Market is booming with Tech Jobs, employing thousands of new residents in the state of Washington, and therefore – our inventory is shrinking. Right now, an average of 236 people are moving to the Seattle area each day, according to a new report by The Puget Sound Regional Council , a growth management and planning organization. That number reflects natural increase (births minus deaths) and net migration (inbound minus outbound). Just in the month of February ALONE – 12,413 out-of-state driver’s obtained a WA license. We licensed 195,889 out-of-state drivers in the past 12 months.
Source: http://www.dol.wa.gov/about/docs/driver-reports/2017-02-WDL-report.pdf
With almost 200,000 new Washington State Residents- they need somewhere to live. Whether it is buying a home or renting a home. Just like buying a home, renting is JUST as competitive. Rents are at all time highs – and seeing more competition than ever.
In a “healthy” market – the Months Inventory is = 6 Months. In Seattle, we have less than 1 month inventory! Of the 4 markets we compare, Gig Harbor Market is the closest to being termed “healthy or stable”, but still, less than 3 months.
John Deely, principal managing broker at Coldwell Banker Bain, said bids over the listing price are commonplace. “We are seeing more multiple offers than ever on new listings, and all cash offers are dominating the winning bids.” He also noted some brokers are reporting a contrast from a year ago with regard to escalation closes. “Last year they were advising a buyer to bid 10 percent above the list price, this year they’re advising 20 percent over in certain Seattle neighborhoods.”
Full Article Here: http://www.northwestmls.com/index.cfm?/News–Information
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