© Mariko Mitsui Real Estate

Volume 3 2020 Issue

N WMLS brokers report brisk activity, noting“too early to tell” if coronavirus will soften sales“We’re entering prime time for the real estate market, and more listings areon the way,” stated industry veteran J. Lennox Scott, as he reviewed the latest
statistical report from Northwest Multiple Listing Service. MLS figures for
February show year-over-year (YOY) gains in new listings, pending sales,
closed sales, and prices. Scott, the chairman and CEO of John L. Scott RealEstate, expects a bump-up in inventory during March and April, but said, “Weremain virtually sold out in many areas in the more affordable and mid-priceranges.”Northwest MLS representatives who commented on last month’s activity
reported little impact so far from the coronavirus (COVID-19) threat.
“Historically low interest rates should help the housing market sustain
strong momentum during the coronavirus outbreak,” according to Scott.
Member-brokers added 7,786 new listings to the MLS database during
February. That was a jump of nearly 25% from the same month a year ago
when record snow hindered activity. Compared to January, last month’s
inventory improved by 1,269 listings for a gain of nearly 19.5%.
February’s new listings (7,786) were the highest since October, but they fell
short of matching demand. Brokers reported 8,355 pending sales (mutuallyaccepted offers) for a YOY gain of more than 21%.
There is only 1.45 months of supply area-wide, according to Northwest
MLS data. It is even more sparse in the four-county Puget Sound region
where there is barely over a month’s supply (1.1 months). Snohomish andThurston counties are reporting less than a month (0.93) of supply.
“The Snohomish County housing market continued on a torrent pace duringFebruary,” said NWMLS director David Maider. Low inventory, a return tohistorically low interest rates, and plenty of buyer demand are stimulating theactivity, according to Maider, owner/broker at Windermere Real Estate M2 inEverett. In many cases, sellers are receiving multiple offers exceeding theasking price, he added.
Current listings are attracting brisk activity, stated John Deely, principal
managing broker at Coldwell Banker Bain in Seattle. “Almost every newlisting has had tremendous showing activity and multiple offers” he remarked.
Brokers say the supply-demand imbalance is contributing to rising prices.
The Northwest MLS report shows the median price system-wide for the5,265 homes and condos that sold in February rose 9.34% from a year ago,from $407,000 to $445,000. Thirteen counties reported double-digit increases,
while four counties had price drops.
Mike Grady, president and COO at Coldwell Banker Bain in Bellevue, said,“While we don’t have a crystal ball for these uncertain times, I continue tobelieve the indicators and information I’m hearing from agents on the groundsupport that our market will continue strong.” He believes 2020 will rival
2017 with similar short days on market, tight inventory and in many markets,a return to multiple offers.
Market Activity Summary for February 2020Listings
Single Family

NewHomes & Condos Listings

Closing Sales

Total

Pending

Active# ofAverage

Closings

PriceMedianPrice

King

2,969

2,221

2,895

1,891

$744,141$615,000

Snohomish

1,165

797

1,465

859

$530,188$494,263

Pierce

1,244

958

1,351

881

$425,276$385,000

Total

5,378

3,976

5,711

3,631

$566,535$498,088

F astest growing large city in the U.S.
Seattle was one of the fastest growing cities this past decade, and from2013 to 2018, it was the fastest growing large city in the U.S., according
to a recent study. Seattle had stretched by 90,731 people in that five-year

span. But despite a booming tech industry and a reputation for drawing
millennials, the fastest growing age group was ages 65 to 74, the studysaid. Large city was defined as 350,000 people or more in a city. Earlier
this past month, SeattlePI published a study that stated Seattle wasn't thefastest growing overall city in Washington - in fact, it wasn't even in thetop 10 of that study. Kirkland grabbed the top spot as it had a growthrate of 84.7% since 2010.

B reakouts! – Residential SOLD Average
February 2020 (King/Snohomish County) SOLD Median
Area (Area Code)Average $Average $2020 VS

Feb. 2020Feb. 20192019

Auburn-Federal Way (110-310)$450,002$387,667

Kent-Maple Valley (320-340)$

528,142$484,633

8.98%

West Seattle (140)$

677,500$

610,000

11.07%

SODO-Beacon Hill (380-385)$

595,988

$647,500-7.96%

E.lake-Madison-Capital Hill (390)$903,500$

800,000

12.94%

Queen Anne-Magnolia (700)$995,000$

923,750

7.71%*Belltown-Downtown Seattle(701)$695,000$

697,000-0.29%

Ballard-Greenlake (705)$749,925$760,000-1.33%

North Seattle (710)$771,000$

744,500

3.56%$

Shoreline/Richmond Beach (715)$

702,450

Bellevue Downtown (520)$

2,660,000

Mercer Island (510)$

1,880,000

Bellevue South-Newcastle (500)$983,000

Renton Highlands-Downtown (350)$715,000

Microsoft-Bellevue East (530)$980,000

Kirkland Downtown (560)$

1,415,000

Redmond (550)$930,000

Issaquah-Sammamish (540)$977,500

Juanita-Bothell-Woodinville (600)$Bothell North-Mill Creek (610)

16.08%

609,950

15.17%$ 2,262,500

17.57%$ 1,490,000

26.17%$

825,000

19.15%$645,000

10.85%$

820,000

19.51%$ 1,260,000

12.30%$750,000

24.00%$857,873

13.94%

784,500$803,725-2.39%$

732,000$

688,136

6.37%

Edmonds-Lynnwood (730)$607,000$

514,250

18.04%

Everett-Mukilteo-Snohomish (740)$515,000$

456,340

12.85%*Condominium SOLD Median

H ow the Federal Reserve affects mortgage rates
Consumers sometimes misunderstand how the Federal Reserve affects
traditional mortgage rates. The Fed doesn’t actually set mortgage rates.
Instead, it determines the federal funds rate, which generally impacts
short-term and variable (adjustable) interest rates.
This is the rate at which banks lend money to one another overnight tomeet mandated reserve levels. When the federal funds rate increases, itbecomes more expensive for banks to borrow from other banks.
Traditional mortgage rates are influenced by a number of factors,including Federal Reserve monetary policy, which includes both thefederal funds rate and buying and selling of government securities suchas bonds.
Weekly Primary Mortgage Market Survey® (PMMS®)

Gina Brown (NMLS#115337)

March 19, 2020

Senior Loan Officer

Regional Breakdown

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

Average Rates
Fees & Points
APR30-Yr
FNMA
3.875%

30-Yr
FHA
3.50%

15-Yr
FNMA
3.250%

5/1
ARM
3.50%

*All loans are with a one point origination fee.

4.017%

4.163%

3.496%** Owner Occupied / Single Family Residence
740 credit score and 20% down payment for conventional
620 credit score and 3.50% down payment for FHA

2.880%