© Mariko Mitsui Real Estate

Volume 5 2016 Issue

H ousing inventory improves; market still
favors sellers
Northwest Multiple Listing Service reported strong gains in the volume ofnew listings its members added during April (up 13.6 percent from March),
but inventory remained well below the supply needed for a more balanced
market. MLS leaders say the lopsided market is prompting some anxious
buyers to take ill-advised risks.
For the four-county Puget Sound region, pending sales totaled 8,332,
making last month the third strongest April in the past 16 years. Comparedwith prior Aprils, last month's volume was surpassed only in 2015 and2005.

in particular of dropped, which is making it difficult for first-timebuyers to break into the market. 2) More buyers may consider a newhome - because the inventory of existing homes is small, some homebuyers may seek greater alternatives to limited inventories andconsider building a home and buying new. 3) Buying is cheaper thanrenting - seven in ten respondents of a recent Freddie Mac survey
believe it's cheaper to pay rent than a monthly mortgage on a home.

B reakouts! – Residential SOLD Average
April 2016 (King/Snohomish/Piece County) SOLD Average
Area (Area Code)Average $Average $2016 VS

Apr. 2016

Apr. 20152015
21.32%

Area-wide, members added 11,939 new listings to the MLS databaseduring April, a modest improvement from a year ago when they logged in
11,495 homes and condos. With last month's additions, total inventory at
the end of April included 14,235 active listings, a sharp drop (down 21.5 %)from twelve months ago when the selection included 18,132 residences.

Auburn-Federal Way (110-310)$345,621$ 284,883

Kent-Maple Valley (320-340)
West Seattle (140)$$401,630
550,066$ 342,172$ 499,674

SODO-Beacon Hill (380-385)$497,878$ 499,905

E.lake-Madison-Capital Hill (390)$976,455$ 940,202

3.86%

J. Lennox Scott, chairman and CEO of John L. Scott, Inc. described April
as "another grand slam month for housing," adding, "The market is more
intense than a year ago. We are still seeing 80 percent of the homes comingon the market sell within the first 30 days.

Queen Anne-Magnolia (700)$973,165$ 883,451

10.15%*Belltown-Downtown Seattle(701) $752,070$ 536,535

40.17%

Ballard-Greenlake (705)$717,710$ 610,681

17.53%

North Seattle (710)$808,900$ 679,489

19.05%

Shoreline/Richmond Beach (715)$523,475$ 510,260

2.59%-1.34%For single family homes only (excluding condos), inventory dropped
about 21 percent, pending sales were about even with twelve months ago(up 1.2 percent), and year-over-year prices rose about 4.7 percent, from
$320,000 to $335,000. King County's single family home prices shot up
12.5 percent, to $540,000.

17.38%
10.08%-0.41%

Bellevue Downtown (520)$ 2,025,688$ 2,053,180

Mercer Island (510)$ 1,324,129$ 1,310,174

1.07%
23.87%

Bellevue South-Newcastle (500)$906,727$ 731,999

Diedre Haines, a former chairman of the Northwest MLS board ofdirectors, reports there are growing signs "of buyers' fatigue, and gameplaying at its finest." Pre-inspections are being conducted as the "newnormal," and/or buyers are waiving many of their rights with regard toinspections, title reviews, neighborhood reviews, and financing
contingences, according to Haines, Coldwell Banker Bain's principal
managing broker for South Snohomish County.

Renton Highlands-Downtown (350) $503,639$ 466,597

7.94%"In my opinion, this is risky behavior for both buyers and sellers," Haines
commented, adding, "Buyers need to perform their due diligence
investigations, and sellers should be cautioned about the wisdom, or lackthereof, in thinking these waivers strengthen the offer, are good for them, orthat they create a 'no hassle' quick-close transaction." She urged parties to atransaction to think through the potential consequences of taking such risks.
Looking ahead, Ken Anderson, a former MLS director whose office is in
Olympia said given the lack of new home construction and the huge pent-up
demand, the seller's market will likely continue for some time. "This means
prices will rise higher than normal - which means today's buyers will behappy they purchased when they did."Market Activity Summary for April 2016
Listings
Single Family

NewHomes & Condos Listings

TotalClosing Sales
Pending

Active# ofAverage

Closings

Price

MedianPrice

King

4,236

3,232

3,925

2,886

$575,039$475,000

Snohomish

1,813

1,462

1,836

1,213

$386,276$357,000

Pierce

1,939

2,050

1,987

1,346

$289,749$264,000

Total

7,988

6,744

7,748

5,445

$417,021$365,333

T hree Housing Trends
The Street recently identified three housing trends emerging this spring
as follows: 1) Inventory favors sellers - buyers are competing for
limited inventories, inventories of less expensive "starter homes,"

Microsoft-Bellevue East (530)$797,208$ 673,123

18.43%

Kirkland Downtown (560)$999,319$ 864,789

15.56%

Redmond (550)$731,728$ 664,325

10.15%

Issaquah-Sammamish (540)$748,368$ 689,104

8.60%

Juanita-Bothell-Woodinville (600)$657,698$ 574,292

14.52%

Bothell North-Mill Creek (610)$553,352$ 500,121

10.64%

Edmonds-Lynnwood (730)$467,967$ 450,440

3.89%

Everett-Mukilteo-Snohomish (740) $417,238$ 382,544

9.07%*Condominium SOLD Average

B uying a Fixer Upper?
Resale homes may need work on everything, from a new roof torepairing the deck.
When you buy a home, it will suffer wear and tear over time. A smart
approach would be to take a few hundred dollars per month and putthat money aside in a house repair fund, so when things come up, you
can finance the repairs with cash instead of borrowed money.
More importantly, if the house you're buying will put a strain on yourfinances, don't buy it. It's that simple. Consider what repairs you wantto make over time and how you're going to cover them.
Generally, if you can buy a home, enjoy it, spruce it up as yourfinances allow and hold that property for five to seven years or longer,
you're going to do well for yourself.

Gina Brown (NMLS#115337)

Weekly Primary Mortgage Market Survey® (PMMS®)

Mortgage Specialist /Mortgage Capital Associates

M ay 11, 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
F ees & P o ints
APR

3.500%

3.250%

2.625%

2.500%*All loans are with a one point origination fee.
3.627%

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