© Mariko Mitsui Real Estate

Volume 8 2018 Issue

H omebuyers Encouraged, “But Still On
Edge,” While Sellers Face Reality Checkan individual would need to work around 93 hours a week (theequivalent of 2.3 full-time jobs) to afford that rental. For a onebedroom rental, that worker would need to clock 75 hours.

"Home sellers throughout the Seattle region are experiencing a reality
check and the days of multiple offers are days of the past," was how one
director with Northwest Multiple Listing Service summarized the market
upon reviewing the statistical report for July.
New figures from Northwest MLS show year-over-year improvement ininventory (up 6.5 percent), but modest drops on both pending sales (downslightly more than 7 percent) and closed sales (down 3.4 percent). Despite
those drops, prices rose 8.64 percent across the MLS service area that spans
23 counties.
Several industry leaders commented on the steadily improving supply.
The number of active listings system-wide totaled 16,773 at the end of July,
the largest volume since September 2016. System-wide there is 1.8 monthsof supply, the highest level since October 2016.
King County's number of active listings surged nearly 48 percent from ayear ago, rising from 3,465 active listings to 5,116. Snohomish County also
had double-digit increases, up nearly 15.8 percent.
George Moorhead, designated broker at Bentley Properties, is noticing anincrease in the number of price reductions for actively listed homes asinventory increases, "even in the hotspots in Seattle and the Eastside. We
are seeing a continued shift from move-up and luxury home buyers to more
first-time buyers, which is consistent with the flattening trends we areseeing in today's market.“MLS statistics show pending sales declined from 11,800 a year ago to lastmonth's total of 10,965 for a drop of about 7.1 percent. New listings
eclipsed pending sales by a margin of 1,233 units, easing some of thepressure on inventory.
Closed sales slipped about 3.4 percent from a year ago, declining from9,707 completed transactions to 9,379. Nevertheless, the median selling
price increased $33,000 (about 8.6 percent) from a year ago, although threecounties experienced declines. The median price on last month's completed
sales of single family homes and condominiums was $415,000. Comparedto June, the median price dropped $10,000.
Prices for single family homes only (excluding condos) rose about 8.4
percent, with a dozen counties reporting double-digit gains. Condo prices
increased about 10.2 percent. In King County where more than half thecondo sales occurred, price jumped about 12 percent from a year ago.
"Getting back to a balanced market creates a healthier and moresustainable market," Moorhead stated. He believes there has not been abetter time in the last three years for a buyer to enter this market with more
options and less competition.

B reakouts! – Residential SOLD Average

Market Activity Summary for July 2018
Listings
Single Family

NewHomes & Condos Listings

Closing Sales

Total

Pending

Active# ofAverage

Closings

Price

MedianPrice

July 2018 (King/Snohomish/Pierce County) SOLD Average
Area (Area Code)Average $Average $2018 VS

July 2018

July 2017

2017

Auburn-Federal Way (110-310)$420,535 $

396,933

5.95%

Kent-Maple Valley (320-340)$510,069 $

450,580

13.20%

West Seattle (140)$717,037 $

645,097

11.15%

SODO-Beacon Hill (380-385)$692,209 $

653,018

6.00%

E.lake-Madison-Capital Hill (390)$1,288,031$ 1,154,556

11.56%

Queen Anne-Magnolia (700)$1,239,041$ 1,015,940

21.96%*Belltown-Downtown Seattle(701)$784,749 $791,480

Ballard-Greenlake (705)$845,105 $820,914

2.95%

North Seattle (710)$

926,225 $933,433-0.77%

896,056 $-0.85%

Shoreline/Richmond Beach (715)$

681,21031.54%

Bellevue Downtown (520)$3,698,086$ 2,551,75244.92%

Mercer Island (510)$

1,913,576$ 1,770,251

8.10%

Bellevue South-Newcastle (500)$

1,161,395$ 1,034,935

12.22%

Renton Highlands-Downtown (350)$

660,661 $576,384

Microsoft-Bellevue East (530)$1,018,024 $

980,322

14.62%
3.85%

Kirkland Downtown (560)$

1,421,702$ 1,157,182

22.86%

Redmond (550)$

1,003,568 $

888,895

12.90%

Issaquah-Sammamish (540)$983,336 $

860,546

14.27%

Juanita-Bothell-Woodinville (600)$

896,325 $765,801

17.04%

Bothell North-Mill Creek (610)$748,278 $

646,652

15.72%

Edmonds-Lynnwood (730)$

618,339 $

580,411

6.53%

Everett-Mukilteo-Snohomish (740)$524,663 $472,203

11.11%*Condominium SOLD Average

S trong economy
There is optimism from analysts that the economy will continue togrow from here. Even the Federal Reserve Board in their recent
statement used the word "strong" to characterize the economy. The
question for this week is what could stop or slow down the present
rate of growth.
For one thing, higher interest rates are the result of a stronger
economy and they are designed to make sure that the economy does
not run out of control.
Certainly, we have had higher rates this year. The strong job market
could also keep a lid on economic growth if we actually run out ofskilled workers to fill positions. We are seeing this somewhat in thereal estate sector as there are not enough skilled workers to buildhomes.

King

4,289

5,116

3,374

3,261

$757,262$629,000

Snohomish

1,781

2,036

1,630

1,405

$506,063$465,000

Pierce

1,990

2,413

2,012

1,605

$387,450$348,450

Gina Brown (NMLS#115337)

Weekly Primary Mortgage Market Survey® (PMMS®)

Total

8,060

9,565

7,016

6,271

$550,258$480,817

Senior Loan Officer

August 17, 2018

K ing County Out of Reach
According to the 2018 Out of Reach report from the National Low
Income Housing Coalition (NLIHC), this year’s recorded hourly rate
needed to live in a two-bedroom rental in the Seattle-Bellevue metroarea was $36.12. Based on the state's minimum wage of $11.50,

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

Regional Breakdown

Average Rates
Fees & Points
APR30-Yr
FNMA
4.375%

30-Yr
FHA
3.875%

15-Yr
FNMA
3.75%

5/1
ARM
3.875%*All loans are with a one point origination fee.

4.439%

5.021%

3.892%** Owner Occupied / Single Family Residence
740 credit score and 20% down payment for conventional
620 credit score and 3.50% down payment for FHA

3.962%