© Mariko Mitsui Real Estate

Volume 9 2016 Issue

H ousing market still active, with overall
direction “positive”
Home sales in Western Washington continued to outpace year-ago
activity, but member-brokers at Northwest Multiple Listing Service say
persistent inventory shortages are constraining activity.
Despite a sparse selection in many areas, an expected summer slowdown,
and "appraisal conundrums," Northwest MLS members notched 11,898
pending sales during August, eclipsing the same month a year ago by 1,295
transactions for a 12.2 percent gain. There were 8,628 pending sales in thefour-county Puget Sound region -- the best August for mutually accepted
offers since 2005 when members tallied 8,874 sales.
Brokers added 11,411 new listings to the Northwest MLS database during
August, but they presented offers for even more buyers (11,898) to keep
inventory below two months of supply. At month-end, there were 18,336
active listings in the MLS system, a decrease of 11.6 percent from a year
ago, resulting in only 1.9 months of supply. (Four to six months is generally
considered to be a "neutral" or balanced market for buyers and sellers.)"The market remains just as intense as July," observed J. Lennox Scott,chairman and CEO at John L. Scott, Inc. "The best opportunity forhomebuyers to find a home will be in the next 60 days," he suggested,
explaining the number of new listings coming on the market is likely todrop by 50 percent each month between November and February. "We
expect a repeat of conditions from last winter when every available homethat came on the market in areas with a shortage of inventory received quick
action.""Buyers in the Seattle area are plentiful in all price ranges, but the entrylevel housing demand continues to be the highest," reported John Deely,principal managing broker at Coldwell Banker Bain. As an example, he saida recent open house for a condo listing in the South Lake Union area drew
more than 100 visitors in a single day. Tech workers continue to dominate
the primary buyer demographic, he said, adding that a significant number of
their parents are relocating here to purchase properties close to theirchildren.
Looking ahead, Northwest MLS director Dick Beeson believes "more ofthe same is on the way," adding, "Buyers are fortunate to have low interest
rates" and replenished inventory. OB Jacobi, president of Windermere Real
Estate, said even though the market continues to favor sellers, there aresigns it is slowly starting to shift. "We're still a far cry from a balanced
market, but the overall direction is positive."

Listings
NewTotal

Closing Sales
Pending

B reakouts! – Residential SOLD Average
August 2016 (King/Snohomish/Piece County) SOLD Average
Average $Average $2016 VS

August 2016 August 2015

2015
5.19%

Area (Area Code)Auburn-Federal Way (110-310)$349,564$ 332,323

Kent-Maple Valley (320-340)
West Seattle (140)$$410,511
599,914$ 355,719$ 522,938

SODO-Beacon Hill (380-385)$558,204$ 495,717

E.lake-Madison-Capital Hill (390)$863,910$ 911,983-5.27%

15.40%
14.72%
12.61%$ 869,193

15.58%*Belltown-Downtown Seattle(701) $951,759$ 731,103

30.18%

Ballard-Greenlake (705)675,937$ 644,256

4.92%
13.70%

Queen Anne-Magnolia (700)$ 1,004,572$

North Seattle (710)$735,474$ 646,879

Shoreline/Richmond Beach (715)$530,087$ 467,488

13.39%

Bellevue Downtown (520)$ 2,463,805$ 1,913,879

28.73%

Mercer Island (510)$ 1,570,450$ 1,640,945-4.30%

Bellevue South-Newcastle (500)$860,038$ 888,857-3.24%

Renton Highlands-Downtown (350) $506,062$ 432,851

16.91%

Microsoft-Bellevue East (530)$819,709$ 712,314

15.08%

Kirkland Downtown (560)$981,404$ 940,585

4.34%

Redmond (550)$789,062$ 734,554

7.42%

Issaquah-Sammamish (540)$804,536$ 710,841

13.18%

Juanita-Bothell-Woodinville (600) $674,757$ 581,092

16.12%

Bothell North-Mill Creek (610)$562,229$ 510,490

10.14%

Edmonds-Lynnwood (730)$494,484$ 454,689

8.75%

Everett-Mukilteo-Snohomish (740) $434,386$ 394,356

10.15%*Condominium SOLD Average

Data shows that now is the time to buy
Buyers in the market for a higher end home will have ample options
to choose from while those looking to buy a less expensive or entrylevel home may find a limited supply and rising prices.
According to a recent Zillow report, home values are appreciating
faster than experts anticipated, rising almost 5% over the past year.
Plus there are 3.4 percent fewer homes for sale in the U.S. then there
were 12 months ago.

Market Activity Summary for August 2016

Single Family

as technology allows people to trick out small spaces with bigamenities. And millennials don't seem to crave size as much as they doa smart, high-functioning, environmentally friendly home. In otherwords, bigger isn't necessarily better.

# ofAverage

MedianClosingsPrice

Price

Homes & Condos Listings

ActiveKing

3,953

4,211

4,083

3,656

$601,995$499,974

Snohomish

1,826

2,047

1,873

1,538

$410,691$380,000

Pierce

1,975

2,987

2,040

1,576

$310,029$283,225

Total

7,754

9,245

7,996

6,770

$440,905$387,733

Low interest rates, strong wage growth and high demands for homes
are pushing up prices across the country, which is forcing the biddingwars.
Waiting to buy may mean you will pay thousands more for a home in
the future, lose out on the low rates and sacrifice building equity.
Weekly Primary Mortgage Market Survey® (PMMS®)

S mall is happening in a big way
For the first time since the recession, home size is shrinking. Mediansingle-family square floor area fell from the first to the second quarterof this year by 73 feet, according to the National Association of Home
Builders (NAHB) and U.S. Census data. That may not sound like a lot,
but it is a clear reversal in the trend of builders focusing on the higherend buyer. The tiny house trend has been growing exponentially,Gina Brown (NMLS#115337)

September 15, 2016

Mortgage Specialist /Mortgage Capital Associates

Regional Breakdown

425-766-5408
gina@gmgloan.com
www.loansbygina.com

A verage Rates
Fees & Po ints
A PR30-Yr
FNM A
3.375%

30-Yr
FHA
2.75%

15-Yr
FNM A
2.625%

5/1
A RM
2.875%*All loans are wit h a one point originat ion f ee.

3.501%

3.869%

2.847%

2.997%** Owner Occupied /Single Family Residence
740 credit score and 20% down payment for conventional
640 credit score and 3.50% down payment for FHA