© Mariko Mitsui Real Estate

Volume 8 2020 Issue

Opportunities abound for home buyers
and sellers, but brokers say “don’t delay”
Brokers added the largest monthly number of new listings during July since
May 2019, but pent-up demand from homebuyers meant inventory remained
tight, according to Northwest Multiple Listing Service (NWMLS)
representatives who commented on the latest housing activity report.
The Northwest MLS report for July, which covers 23 counties in
Washington state, shows brokers added 12,514 new listings during July, up
from the year-ago total of 11,193 for a gain of 11.8%. Pending sales jumped
nearly 14%, while inventory remained well below year-ago levels (downabout 39%). Measured by months of inventory, the system-wide supply
slipped to about a month (1.04 months).
MLS member-brokers reported 9,840 closed sales during July, up slightly
more than 3% from a year ago and the highest volume since June 2018 when
they notched 10,072 completed transactions. Overall prices on those sales,
which include single family homes and condominiums, jumped 12.8% fromtwelve months ago, rising from $429,900 to $484,995. Prices on single family
homes (excluding condos) surged 13.6% (to $499,950), while year-over-year(YOY) condo prices rose about 8.6% (to $380,000).
NWMLS director John Deely characterized the market as being in “highgear” during July, with pent-up demand and the need for housing outweighing
fears of the coronavirus. “Although new listings of single family homes inKing County jumped more than 24% from a year ago, the total available
inventory dropped to a 10-year low for the month,” he remarked.
J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noted thatlast month’s pending sales in King, Snohomish, Pierce and Kitsap Counties
were the best-ever for the month of July. “Sellers benefit from the highest
median home prices, while buyers are taking advantage of the lowest interest
rates on record. The combination of the huge backlog of home buyers andbeing virtually sold out of inventory makes it feel like it’s a multiple-offereverything,” he exclaimed, saying, “This is a historic moment in residential
real estate.”“Everyone is buying now,” James Young, director at the Washington Center
for Real Estate Research remarked. “With the virus and increased homeworking, people are able to move to suburbs and outer areas in search of value
and lower population density,” he added, pointing to dwindling supply inseveral outlying areas. “Demand will continue to far outstrip supply for aquite a while,” he predicts, adding, “When you can work from home, why pay
a premium to be close to the office?”
Median prices area-wide rose 12.8% from a year ago, with only twocounties (Jefferson and Pacific) reporting small declines. Fourteen of the 23
counties in the report had double-digit price increases.
Market Activity Summary for July 2020
Listings
Single FamilyNewHomes & Condos Listings

Closing Sales

Total

Pending

Active# ofAverage

Closings

Price

MedianPrice

King

4,680

3,877

4,277

3,420

$807,178$670,000

Snohomish

1,817

1,095

1,930

1,504

$580,727$546,450

Pierce

1,977

1,287

2,053

1,527

$467,210$420,000

Total

8,474

6,259

8,260

6,451

$618,372$545,483

cheap electricity rates here. Washington's comparatively low electricalcosts more than make up for the relatively high cost of motor fuelhere. Although Washington's motor fuel prices are the third-highest in
the nation, residents here drive less and use more energy-efficient
vehicles than most other states, bringing down the amount spent on
gas and diesel.

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

July 2020

Average $2020 VS

July 20192019

Auburn-Federal Way (110-310)$

480,666$

447,926

7.31%

Kent-Maple Valley (320-340)$561,750$

516,936

8.67%

West Seattle (140)$734,145$689,772

6.43%

SODO-Beacon Hill (380-385)$

724,252$

735,117-1.48%

E.lake-Madison-Capital Hill (390)$

1,225,965$ 1,147,823

6.81%

Queen Anne-Magnolia (700)$1,258,073*Belltown-Downtown Seattle(701)$829,179$

931,429-10.98%Ballard-Greenlake (705)$896,665$

830,937

7.91%

North Seattle (710)$997,092$940,740

5.99%

Shoreline/Richmond Beach (715)$815,498$792,251

2.93%

Bellevue Downtown (520)$3,285,389$ 2,580,996

27.29%Mercer Island (510)$2,026,042$ 1,977,916

2.43%

Bellevue South-Newcastle (500)$

1,119,791

Renton Highlands-Downtown (350)$708,106

Microsoft-Bellevue East (530)$

Kirkland Downtown (560)$Redmond (550)$ 1,177,056

6.88%$ 1,113,367

0.58%

$

642,072

10.28%

1,298,878$ 1,137,263

14.21%

1,583,435$ 1,497,804

5.72%

$

1,038,377$ 1,023,656

1.44%Issaquah-Sammamish (540)$1,027,594$960,918

6.94%

Juanita-Bothell-Woodinville (600)$888,753$909,964-2.33%Bothell North-Mill Creek (610)$

761,489$

717,282

6.16%

Edmonds-Lynnwood (730)$710,614$617,65415.05%

Everett-Mukilteo-Snohomish (740)$

607,102$546,91211.01%*Condominium SOLD MedianMortgage rates trend
With most lenders still easily able to quote a 30yr fixed under
3%, mortgage rates are very low.
But relative to the recent trend and the general level of volatility,
today was a bit rough. Rates rose as fast as they've risen since earlyJune.
The bigger question is whether this rate spike is a sign of things tocome or merely a normal market correction that got a bit carried
away. At some point, the bond market will make a clear case for higherrates. Most agree we're probably not there yet due to economic realities
as well as ongoing support from the Federal Reserve.
Weekly Primary Mortgage Market Survey® (PMMS®)
August 13, 2020

L owest average energy costs in U.S.

Gina Brown (NMLS#115337)

Regional Breakdown

Senior Loan Officer

Average Rates

Washington state has the lowest average energy costs of any state in thenation, according to a newly released report. The study, by personal
finance website WalletHub, found that Washington state residents spend
an average of $219 each month on energy and fuel - less than any otherstate. Washington state's low average energy costs are mainly due to the425-766-5408
gina@gmgloan.com
www.loansbygina.com

Fees & Points
APR30-Yr
FNMA30-Yr
FHA15-Yr
FNMA

5/1
ARM

2.625%

2.75%

2.250%-*All loans are with a one point origination fee.

2.753%

3.016%

2.484%-**** 5/1 ARM’s are not pricing right now due to liquidity issues
with the Forbearance due to COVID 19** Owner Occupied / Single Family Residence
740 credit score and 20% down payment for conventional