© Mariko Mitsui Real Estate

Volume 4 2016 Issue

P uget Sound Area Home Sales Slow
(Not Prices)
Traffic isn't the only thing that is gridlocked around many Puget Sound
communities. "We're experiencing gridlock in the Puget Sound housing
market," suggested J. Lennox Scott in reaction to the latest statistics from
Northwest Multiple Listing Service.
MLS figures show pending sales across the 23 counties it serves dropped
about 4.5 percent in March compared to the same period a year ago.
Inventory fell sharply - down more than 25 percent. Brokers say thatimbalance helped spur a 9.4 percent escalation in prices area-wide, with12 counties reporting double-digit increases.

around-the-clock entertainment. Livability.com looked at 2,000 small
to mid-sized cities with low vacancy rates, new development and an
influx of people into those spaces. It also looked for cultural attractions
and nightlife as well as the city's Walk Score and measures ofaffordability and diversity. The "Top 10 Best Downtowns for 2016"
are (in top order): Alexandria, VA, Santa Monica, CA, Greenville, SC,Bellevue, WA, Pittsburgh, PA, Boise, ID, Tempe, AZ, Plano, TX,Colorado Springs, CO and Evanston, IL.

B reakouts! – Residential SOLD Average
March 2016 (King/Snohomish/Piece County) SOLD Average
Area (Area Code)Average $Average $2016 VS2015
14.89%

Mar. 2016

Mar. 2015

Auburn-Federal Way (110-310)$333,723$ 290,475

Kent-Maple Valley (320-340)
West Seattle (140)$$386,283
551,333$ 333,877$ 491,642

The year-to-date drop in pending sales versus first quarter 2015 is areflection of tight inventory, according to MLS members. "It's not for any
other reason except there aren't enough homes coming on the market tosatisfy pent-up buyer demand," stated Scott. He also points to listing
shortages for the steady escalation of home prices.

SODO-Beacon Hill (380-385)$531,820$ 468,836

12.14%
13.43%

E.lake-Madison-Capital Hill (390)$974,083$ 823,113

18.34%

Queen Anne-Magnolia (700)$949,852$ 782,133

21.44%*Belltown-Downtown Seattle(701) $744,508$ 582,664

27.78%$679,558$ 598,10613.62%

To illustrate his point, Scott cited figures for the single family component.
In King County, pending sales for March declined nearly 11 percent, while
prices spiked 20.7 percent. Pending sales of condos (excluding singlefamily homes) were about the same as a year ago in King County, but
year-over-year prices jumped 15 percent.

Ballard-Greenlake (705)North Seattle (710)$824,299$ 650,001

26.82%

Shoreline/Richmond Beach (715)$550,860$ 410,349

34.24%

Bellevue Downtown (520)$ 1,966,305$ 1,851,969

6.17%

Mercer Island (510)$ 1,607,818$ 1,265,521

27.05%

Bellevue South-Newcastle (500)During March, brokers reported 10,900 pending sales, about 500 fewer
mutually accepted offers than a year ago for a drop of nearly 4.5 percent.
For the four-county Puget Sound region, pending sales were down about
6 percent.

"In today's market sellers want to find their next home before they list
their current home, but because of the severe inventory shortage it's hard to
win in a multiple offer situation," Scott explained. He said some sellers arehesitant to put their home on the market because they fear it would sellinstantly and they might not win their next home. "It's a Catch 22 situation,"he explained.
Mike Grady, president and COO of Coldwell Banker Bain, noted closed
sales outside of King County are outpacing year-ago levels. "This is most
likely a reflection of the lack of affordability within King County andindicates that buyers are increasingly looking to other counties for theirhome purchases," he remarked.
The median selling price on homes and condos that closed last month was$320,000, up 9.4 percent from twelve months ago when it was $292,500.
Compared to February, prices rose nearly 4 percent. In King County,year-over-year prices for March jumped 11.5 percent, from $411,200 to$458,450.
For single family homes (excluding condos), prices area-wide are up
8.7 percent from a year ago. In King County, prices soared 20.7 percent
compared to year ago, jumping from $440,250 to $531,250.
Market Activity Summary for March 2016
Listings
Single Family

NewHomes & Condos Listings

Closing Sales

Total

Pending

Active# ofClosings

Average

Median15.70%$829,233$ 772,062

7.40%

Renton Highlands-Downtown (350) $521,127$ 455,516

14.40%

Microsoft-Bellevue East (530)$848,519$ 604,111

40.46%

Kirkland Downtown (560)$ 1,029,207$ 924,653

11.31%

Redmond (550)$730,461$ 618,856

18.03%

Issaquah-Sammamish (540)$720,323$ 638,607

12.80%

Juanita-Bothell-Woodinville (600)$

655,226$ 572,134

14.52%

Bothell North-Mill Creek (610)$564,851$ 487,481

15.87%

Edmonds-Lynnwood (730)$465,960$ 464,853

0.24%

Everett-Mukilteo-Snohomish (740) $400,091$ 373,110

7.23%*Condominium SOLD Average

P otential Rate Hikes Not Deterring Buyers
In mid December 2015, the Federal Reserve raised its key interest rate
to a range of one-fourth to one-half percent. Despite this slightincrease, and its potential impact on mortgage rates, the majority ofhomebuyers are still moving forward with their house hunting plans.
A recent study by Zillow found that 70% of Americans currently
searching for a home will continue looking even if rates rise to 4.5%,
the level economists expect by 2016.
Purchasing a home continues to be more affordable than renting.
Rates are still at historic lows.

PricePriceKing

3,839

2,700

3,766

2,570

$566,720$458,450

Snohomish

1,621

1,267

1,825

1,156

$389,975$365,000

Gina Brown (NMLS#115337)
Mortgage Specialist /Mortgage Capital Associates

A pril 14, 2016

30-Yr

30-Yr

15-Yr

5/1

Regional Breakdown

FNM A

FHA

FNM A

A RM

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

A v erage R ates

Pierce

1,697

1,824

1,980

1,267

$287,525$261,000

Total

7,157

629

7,571

4,993

$414,740$361,483

B ellevue is No.4 of top 10 Best Downtowns
The "best downtowns" are growing and thriving, offering expanded
housing options, rising population, affordability, diversity andWeekly Primary Mortgage Market Survey® (PMMS®)

F ees & P o ints
APR

3.500%

3.250%

2.750%

2.625%*All loans are with a one point origination fee.
3.627%

4.218%

2.973%

2.745%

740 credit score and 20% down payment for conventional
640 credit score and 3.50% down payment for FHA