© Mariko Mitsui Real Estate

Volume 10 2019 Issue

N WMLS Brokers Say Transition to Fall
Creating Opportunities for Buyers
Northwest Multiple Listing Service brokers reported year-over-year gains
in pending sales, closed sales and prices, but its report summarizing
September activity also showed an 18% drop in inventory compared to a yearago.
"The transition into the fall housing market creates opportunities forhomebuyers," suggested J. Lennox Scott, chairman and CEO of John L. Scott
Real Estate. "Although there are fewer listings than what buyers find during
peak summer months, there is also less competition" for the available
inventory, he added.
While the intensity of sales activity is typically lower for new listings in thefall and winter, Scott noted "It appears we are headed toward a more intense
winter market than last year." He said he expects the number of unsold
listings will continue to decrease once the winter "clean-up" of inventory
begins.
At the end of September, MLS brokers reported 15,982 total active listings,
down more than 18% from the same month a year ago when the selection
totaled 19,526 listings.
"September's housing market was a bit of a roller coaster, up in certain
areas and down in others," commented OB Jacobi, president of Windermere
Real Estate.. Within the four-county Puget Sound region, Pierce County
prices rose more than 10% thanks to high demand and low inventory, henoted. "Buyers continue to be drawn to the area thanks to more affordable
housing costs, but this influx is also driving up prices," he remarked.
MLS data show the median price for last month's home sales in Pierce
County ($379,950) was $213,800 less than the median price in King County($593,750). A comparison of single family prices (excluding condos) reveals
a $275,500 difference between the two counties.
System-wide, prices were up 5%, rising from $400,000 a year ago to$420,000. The volume of closed sales increased about 4.4% from a year ago(7,962 versus 7,630).
"Home prices have stabilized, creating good opportunities for purchasers,"
said Dean Rebhuhn, the owner of Village Homes and Properties in
Woodinville. He expects prices to stay stable through the fall and wintermarkets. "Continuing to drive the market are new jobs, lifestyle changes, andvery low interest rates," Rebhuhn remarked.
The latest report from Northwest MLS shows pending sales were up about
9.8% from a year ago, with mutually accepted offers rising from 8,913 to9,785. In the four-county Puget Sound region, Snohomish reported thelargest gain at 18.3%.
Market Activity Summary for September 2019
Listings
Single Family

NewHomes & Condos Listings

Closing Sales

TotalPending

Active# ofAverage

MedianClosings

PricePriceKing

3,525

5,431

3,151

2,506

$725,112$593,750

Snohomish1,520

2,156

1,546

1,255

$510,601$470,000

Pierce

1,377

1,928

1,699

1,352

$418,080$379,950

Total

6,422

9,515

6,396

5,113

$551,264$481,233

In Seattle, the study found that the average person who bought a homein 2012 has gained $364,000 in home equity – an increase of 461
percent. But when it comes to the percentage of home equity increase,no city in the nation could top Tacoma. The report found that those
who bought a home in Tacoma in 2012 have earned a stunning 1,453
percent increase in home equity.

B reakouts! – Residential SOLD Average
September2019(King/Snohomish/Pierce County) SOLD Average
Average $Area (Area Code)Average $2019 VS2018

Sept. 2019

Sept. 2018

Auburn-Federal Way (110-310)$

434,885$

417,039

4.28%

Kent-Maple Valley (320-340)$

505,194$

516,956-2.28%

West Seattle (140)$710,336$

752,138-5.56%

SODO-Beacon Hill (380-385)$

670,029$

628,438

6.62%

E.lake-Madison-Capital Hill (390)$1,212,370$ 1,104,660

9.75%

Queen Anne-Magnolia (700)$1,015,252$ 1,359,569-25.33%*Belltown-Downtown Seattle(701)$648,636$

853,665-24.02%

Ballard-Greenlake (705)$

817,657$

868,035-5.80%

North Seattle (710)$

1,099,273$ 1,071,733

2.57%

Shoreline/Richmond Beach (715)$

679,537$

637,043

6.67%

Bellevue Downtown (520)$

2,345,154$ 3,438,949-31.81%

Mercer Island (510)$

2,234,113$ 1,766,286

26.49%

Bellevue South-Newcastle (500)$

1,086,485$ 1,082,068

0.41%

Renton Highlands-Downtown (350)$

561,562$587,930-4.48%

Microsoft-Bellevue East (530)$1,110,895$

975,893

13.83%

Kirkland Downtown (560)$1,325,517$ 1,381,817-4.07%

Redmond (550)$969,874$

902,565

7.46%

Issaquah-Sammamish (540)$934,650$

966,505-3.30%

Juanita-Bothell-Woodinville (600)$

881,502$840,392

4.89%

Bothell North-Mill Creek (610)$708,057$

719,764-1.63%

Edmonds-Lynnwood (730)$623,061$594,359

4.83%

Everett-Mukilteo-Snohomish (740)$534,715$495,548

7.90%*Condominium SOLD Average

L abor costs likely to push home prices higher
New home prices have been rising since 2012. Prices in the spring of2019 were up 2 percent compared to a year earlier, partially becauseof rising building costs.
The major components of building costs are those associated withpurchasing and preparing a lot, acquiring permits and inspections,hiring labor and buying materials. There was a significant price runup in the two major components of framing, lumber and steel. Lumber
prices jumped 20 percent and steel prices were up 14 percent in
September 2018 compared to a year earlier.
Weekly Primary Mortgage Market Survey® (PMMS®)

I ncrease in home equity since 2012
People who bought homes in the Puget Sound region at the bottom ofthe housing market in 2012 have earned billions of dollars in homeequity since then, with Tacoma leading the nation in percentage
increase and Seattle coming in at No. 2 in the country in total dollar
increase. The eye-popping figures are contained in a new report
released by real estate brokerage Redfin.

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

October 11, 2019
Regional Breakdown

Average Rates
Fees & Points
APR30-Yr
FNMA
3.50%

30-Yr
FHA
3.00%

15-Yr
FNMA
3.00%

5/1
ARM
3.75%

*All loans are with a one point origination fee.

3.640%

4.587%

3.247%** Owner Occupied / Single Family Residence
740 credit score and 20% down payment for conventional
620 credit score and 3.50% down payment for FHA

3.813%