© Mariko Mitsui Real Estate

Volume 6 2016 Issue

H ousing inventory shortages persist
despite increase in new listings
Just as expected, the month of May had an uptick in new listings (12,272),
but just as many buyers (12,275) made offers on homes during the month tokeep inventory depleted, according to the latest figures from Northwest
Multiple Listing Service.
By month end, member brokers reported 15,198 active listings in theNorthwest MLS database. That's down more than 22 percent from a year
ago when buyers could choose from an inventory of 19,515 listings acrossthe 23 counties served by the listing service.
"The May housing market was not just hot, it was frenzy hot,"commented J. Lennox Scott, chairman and CEO of John L. Scott Real
Estate. "Brokers are working like bees in a hive as the housing market
creates a buzz of sales activity in the Seattle-Central Puget Sound area." By
his analysis, 80 percent of the homes coming on the market in King andSnohomish counties are selling within the first 30 days. "Many sell within
the first week," Scott reported, adding, "A healthy/normal market would
have 30 percent selling in the first 30 days.“Even though brokers say paltry inventory is limiting sales, the year-overyear volume of pending sales rose more than 7.4 percent last month.
Members reported 12,275 mutually accepted offers, up from the year-ago
total of 11,425. MLS data going back to 2004 shows that one-month total is
the highest on record.

63.5% nationally. That's 0.2 percentage point lower than in the samequarter last year and 0.3 point below the fourth quarter. The firstquarter rate for the Seattle-Tacoma-Bellevue metro area was 57.7percent. That marks a significant drop from the same period in 2014,
when the rate was 61.3 percent.

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

May 2015

Auburn-Federal Way (110-310)$349,125$ 307,850

2015
13.41%

Kent-Maple Valley (320-340)
West Seattle (140)$$399,285
573,733$ 362,503$ 476,303

SODO-Beacon Hill (380-385)$551,005$ 463,449

20.46%
18.89%

E.lake-Madison-Capital Hill (390)$ 1,080,077$ 874,895

23.45%

Queen Anne-Magnolia (700)$ 1,085,779$ 889,606

22.05%

Area (Area Code)10.15%*Belltown-Downtown Seattle(701) $663,635$ 504,363

31.58%

Ballard-Greenlake (705)$719,082$ 617,258

16.50%

North Seattle (710)$768,470$ 754,207

1.89%

Shoreline/Richmond Beach (715)$555,856$ 505,309

10.00%

Bellevue Downtown (520)$ 2,124,528$ 2,321,494-8.48%

Prices also rose. The median price area-wide for last month's 8,630 closed
sales of single family homes and condominiums (combined) was $339,950.
That's up more than 7.2 percent from twelve months ago when purchasers
paid $317,000 for the median-priced home. Ten counties reported doubledigit price hikes.

Mercer Island (510)$ 1,793,880$ 1,769,668

1.37%

Kirkland Downtown (560)

In King County, the median price jumped more than 11.7 percent, from$434,000 to $485,000. Prices on single family homes surged nearly 16.5
percent, rising from $480,942 to $560,000. Condo prices were up 9 percent,but finding one proved challenging as inventory dropped 29 percent in KingCounty.

Redmond (550)Brokers offer various suggestions to prospective buyers as they vie forscarce inventory:••"The best advice I can offer to potential first-time buyers is to thinkoutside the box" said Gary O'Leyar, a past chairman of the Northwest
MLS board. He encourages buyers to consider purchasing a "steppingstone" property. "Consider future growth, such as in areas near light railor other transit services, and areas that have good public schools.”"Relationships are paramount in this market," said Lennox Scott. "If
you're looking for a home, make sure your broker knows your story andcan convey it in a compelling way."

Market Activity Summary for May 2016
Listings
Single Family

NewHomes & Condos Listings

Total

Closing Sales
Pending

Active# ofAverage

Closings

Price

MedianPrice

King

4,334

3,332

4,486

3,242

$597,191$485,000

Snohomish

1,862

1,505

1,979

1,386

$403,061$367,250

Pierce

1,989

2,235

2,082

1,442

$305,002$270,500

Total

8,185

7,072

8,547

6,070

$435,085$374,250

O wnership rate fell in the first quarter
According to the Census Bureau, despite improving house prices, theownership rate fell in the first quarter to a nearly half-century low of$843,789$ 878,409-3.94%

Renton Highlands-Downtown (350) $543,517$ 451,938

20.26%

Microsoft-Bellevue East (530)

802,314$ 779,609

2.91%$ 1,098,968$ 888,21423.73%$753,219$ 662,814

13.64%

Issaquah-Sammamish (540)$767,217$ 678,327

13.10%

Juanita-Bothell-Woodinville (600)$698,071$ 584,500

19.43%

Bothell North-Mill Creek (610)$552,485$ 488,075

13.20%

Edmonds-Lynnwood (730)$510,208$ 412,834

23.59%

Everett-Mukilteo-Snohomish (740) $428,886$ 374,653

14.48%

Bellevue South-Newcastle (500)$*Condominium SOLD Average

O penhouse remain an effective selling tool
In the past, less than 5% of homebuyers previewed properties on theinternet; public open houses were a necessity. Today, buyers selecthouses for private showing after shopping online. So, have open
houses outlived their effectiveness? The answer depends on localpreferences. In many cases, open houses are one of the most effectiveways to gain exposure and feedback from prospective buyers. If anOpen House is not commonplace in your community, your agent will
recommend a Brokers Open to at least have agents through the home.
Always best to listen to the professional that will guide you
successfully.

Gina Brown (NMLS#115337)

Weekly Primary Mortgage Market Survey® (PMMS®)

Mortgage Specialist /Mortgage Capital Associates

June 17, 2016425-766-5408
gina@gmgloan.com
www.loansbygina.com

A verage Rates

Regional Breakdown

Fees & P o ints
APR30-Yr
FNM A
3.375%

30-Yr
FHA
3.250%15-Yr
FNM A
2.625%

5/1
A RM
2.500%*All loans are with a one point origination fee.

3.501%

4.218%

2.847%

2.619%

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