© Mariko Mitsui Real Estate

Volume 9 2020 Issue

W ould-be homebuyers have more buying power,
but also more competition for meager inventory
Extremely low interest rates mean would-be home buyers have more buying
power, but sparse inventory and increasing home prices in many parts ofWashington state are leaving many buyers unable to take advantage of these
attractive rates, reported broker Frank Wilson upon reviewing the latest
statistical report from Northwest Multiple Listing Service.
The August report from Northwest MLS, which covers 23 counties, shows
pending sales surged nearly 25% from a year ago, rising from 10,602
mutually accepted offers to last month’s total of 13,224. Within the fourcounty Puget Sound region encompassing King, Kitsap, Pierce andSnohomish counties, brokers reported 9,179 pending sales. A review of MLS
records dating to January 2002 shows that volume was surpassed only once, inMay 2017 when brokers notched 9,188 pending sales.
“In order for buyers to be successful in purchasing a home in today’s
climate, they have to do some pretty illogical things,” remarked Wilson, theKitsap regional manager and branch managing broker at John L. Scott Real
Estate in Poulsbo. As examples, he listed waiving inspections, paying morethan the house is worth, or agreeing to pay the difference in cash between thelower appraised value and the sales price. “These are counterintuitive to what
we used to see with a negotiation process,” he lamented.
Brokers added 11,943 new listings to inventory during August, down fromJuly, when they listed 12,514 homes and condominiums, but up from the10,488 properties they listed during the same month a year ago. Commentingon the dwindling supply, J. Lennox Scott, chairman and CEO of John L. Scott
Real Estate, said “For the greatest selection and availability, the next twomonths of September and October will be the best months until next March.
”At the end of August, the Northwest MLS database included 9,591 total
active listings, down almost 43% from a year ago when the selection totaled
16,697 listings. With pending sales (13,224) outpacing new listings (11,943),
the months of inventory continues to shrink. Area-wide there is less than one
month of inventory (0.97). Nine counties had under a month’s supply. Fourto-six months is a common indicator of a balanced market, according toindustry experts.
With an insufficient supply, prices are appreciating at double-digit rates inmost counties in the NWMLS report. Systemwide, for last month’s closedsales, prices increased nearly 14% compared with a year ago. Memberbrokers reported 9,847 closed sales, up more than 4.8% from a year ago. That
volume was the highest since June 2018 when there were 10,072 completedtransactions.
In the four-county Puget Sound region year-over-year (YOY) prices jumped
17%, from $500,000 to $585,000.
Market Activity Summary for August 2020
Listings
Single Family

NewHomes & Condos Listings

Closing Sales

Total

Pending

Active# ofAverage

Closings

Price

MedianPrice

King

4,628

4,010

4,420

3,456

$833,821$680,000

Snohomish

1,766

1,024

2,001

1,492

$582,433$534,999

Pierce

1,780

1,110

2,094

1,597

$469,338$425,000

Total

8,174

6,144

8,515

6,545

$628,531$546,666

sold. This year, the housing market is in a unique situation as
mortgage rates have hit record lows at a time when many Americans
are struggling financially due to the COVID-19 pandemic," the study's
authors write. "For those who have extra cash, buying a home now
could be a golden opportunity."

B reakouts! – Residential SOLD Average
August 2020 (King/Snohomish County) SOLD Average
Average $Average $2020 VS

August 2020

August 20192019

Auburn-Federal Way (110-310)$

504,933$

446,139

13.18%

Kent-Maple Valley (320-340)$

570,661$

518,986

9.96%

West Seattle (140)$776,333$

721,972

7.53%

SODO-Beacon Hill (380-385)$745,060$695,831

7.07%

E.lake-Madison-Capital Hill (390)$

1,344,296$ 1,271,401

5.73%

Queen Anne-Magnolia (700)$1,254,590$ 1,285,147-2.38%*Belltown-Downtown Seattle(701)$795,923$

932,346-14.63%

Ballard-Greenlake (705)$924,632$

825,388

12.02%

North Seattle (710)$

1,051,448$

819,65128.28%

Shoreline/Richmond Beach (715)$759,815$664,089

14.41%

Bellevue Downtown (520)$

3,078,796$ 3,077,849

0.03%

Mercer Island (510)$2,253,335$ 1,940,812

16.10%

Bellevue South-Newcastle (500)$

1,264,348

Renton Highlands-Downtown (350)$661,986

Microsoft-Bellevue East (530)$1,265,767

Kirkland Downtown (560)$Redmond (550)$Issaquah-Sammamish (540)Area (Area Code)$ 1,169,208

8.14%

$

665,444-0.52%$ 1,110,451

13.99%

1,584,185$ 1,376,267

15.11%

1,120,792$

926,161

21.01%$

1,080,465$

993,947

8.70%

Juanita-Bothell-Woodinville (600)$955,869$859,806

11.17%

Bothell North-Mill Creek (610)$782,811$724,766

8.01%

Edmonds-Lynnwood (730)$741,061$

625,21718.53%

Everett-Mukilteo-Snohomish (740)$601,385$

531,489

13.15%*Condominium SOLD Median

Y oung adults living with their parents
It was a phenomenon 12 years ago that ended with a huge decline in
homeownership among Millennials, and now it is happening, for thesame reason to Gen Zas a huge surge in unemployment sends young
adults home to live with their parents. The root cause this time, ofcourse, is vastly different; a deadly virus rather than a generalslowdown in the economy coupled with mortgage defaults anddelinquency.
The Pew Research Center has found that the share of 18- to 29-yearolds living with their parents now constitutes a majority of that age
group, surpassing the share in the Great Recession and even topping theprevious peak during the Great Depression.
Weekly Primary Mortgage Market Survey® (PMMS®)
September 14, 2020

Seattle is No.1 for health of real estate market

Gina Brown (NMLS#115337)

Regional Breakdown

A new report has found that Seattle ranks No. 1 for the health of its realestate market among all large cities in the U.S. (with more than 300,000population), based on a wide variety of criteria. The study, by personal
finance website WalletHub, also singled out Bellevue, Wash., for being
one of the fastest places in the nation to sell real estate, with the averagehome there remaining on the market for only a few days before it isSenior Loan Officer

Average Rates

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

Fees & Points
APR

30-Yr
FNMA30-Yr
FHA15-Yr
FNMA

5/1
ARM

2.625%

2.75%

2.250%-*All loans are with a one point origination fee.

2.753%

3.016%2.484%-**** 5/1 ARM’s are not pricing right now due to liquidity issues
with the Forbearance due to COVID 19** Owner Occupied / Single Family Residence
740 credit score and 20% down payment for conventional