The newly released MLS figures show last month’s closed sales reached a 12-month high. A closer look at new listing activity shows last month’s total was down from both the previous month (-6.7%) and the same month a year ago (-8.2%). A comparison of the 23 counties in the Northwest MLS report shows about half the counties have more inventory than a year ago, and half have less. 1.76 months of inventory, with King, Kitsap, Mason, Pierce and Snohomish. Pending sales declined slightly from June and closed sales were up from both the previous month and the same month a year ago. Only four counties reported year-over-year price drops, including King County where prices were down 2.7%.

The market is as anticipated for 2019 with shorter sales windows with spurts of activity, complimented by the longer slower sales which take a more dominant role. 2020 will be a slight recession on the US Markets; however, it will be short with the expectations of only 12 months. King County’s median sales price for single family homes the median price dropped 2.7%. Increased listing inventory from prior months put pressure on pricing. Lower prices brought out the buyers, causing July sales activity to end with a bang. Low interest rates are also propelling activity. Buyers are seeing increased selection at good prices. Well-priced homes continue to sell quickly in market hot spots, often resulting in multiple offers, noting several parts of South King County are hot spots. The highest numbers of homes go under contract per month. However it may feel slower because the greatest numbers of new listings also come on the market.

Builders are starting to see more sales with interest rates dropping to a level not seen since 2016. Today you can purchase nearly 10% more of a home than you could in January of this year. Year-over-year condo sales in Kitsap County surged nearly 39%, with prices jumping nearly 21%. With interest rates holding at below 4% we anticipate the market will be running very strong and fast through the winter of 2019 and into 2020. Now is the time to buy, sell, move up or move down, but be realistic about where the values are, bulk of well priced homes are selling in less than 30 days.”

The rising number of condominium listings in King County (up 39% YOY) point to increased regulatory uncertainty in Seattle surrounding rental properties and the possible outcome of upcoming elections. Many are calculating that it is better to sell while the market is strong rather than take a chance on new ordinances that threaten their investment returns. In general what we’ve had is just not enough lower-priced homes and sort of a vicious cycle where that limited supply has continued pushing prices up. It’s not that the decline in interest rates doesn’t matter at all. The drop since late 2018 to 3.75% has knocked about $160 off a monthly mortgage payment on a $286,000 home.