Home Sales Continue To Reach Ever Higher Levels

Seattle Real Estate Memo

Fall 2020

A new report from the Northwest Multiple Listing Service shows a sharp year-over-year drop in inventory, down 43% from a year ago. A significant increase in pending sales, up 23%, and a sizeable surge in prices. September’s home sales reached the highest level since June 2018.

So what is going on? COVID-19 appears to have made many look at what home means to them. Because of the new work at home allowances by employers, home buyers are able to look for a home in locations they would not have previously considered. Commute times are not relevant for many now working from home. This has created a noteworthy increase in sales for the more affordable suburban areas.

Mortgage interest rates are also motivating people to consider moving, remodeling or refinancing. Historically low interest rates are helping home buyers with lower monthly payments. But the low interest rates are also hurting would be homebuyers. The low interest rates are causing a shortage of listings due to existing homeowners deciding to refinance and stay in place. With the regions supply of homes down 43% from a year ago it is no surprise we are often seeing multiple offers and double digit house price growth. With the depleted inventory and strong demand homebuyers are having to put their best foot forward to compete in the multi-offer environment or deal with the frustration of being outbid.

Despite the many negative news stories about Seattle and the anecdotal tales of a mass exodus from the region, it is still a city where more people are moving into versus out of. The figures show year-over-year closed single family homes in Seattle jumped from 565 in September 2019 to last month’s total of 934, a 65% increase. And the median sales price was up over 9%.

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