Local Market Update April 2015
The spring real estate market definitely came in like a lion. Rising employment, low mortgage rates and very tight inventory have created a buying frenzy. Homes sold within days of being listed – often for over asking price – further frustrating buyers who are facing a serious lack of homes to choose from. Further adding to the problem, many current homeowners are reluctant to put their homes on the market for fear of being unable to find their next home. For the market to be healthy, something has to give.
• Both closed sales and pending sales (agreements that have been signed but not yet closed) in King County were up by double digits over last March.
• Home prices just keep climbing.
• March was the fifth consecutive month of record-low inventory.
Slightly fewer homes sold in Seattle this March as compared to last year, as inventory just kept getting tighter. Seattle’s supply of available homes on the market fell to just over two weeks. There were about 23 percent fewer homes on the market compared to the same time a year ago. The result? Home prices in Seattle soared 19 percent over last March to $535,000.
The number of closed sales increased by nearly 20 percent on the Eastside. Pending sales were up 16 percent. But with under one month supply of inventory, that frenzied sales pace can’t be sustained. In the meantime, it’s remains a seller’s market. Strong competition for a small number of homes drove the median price of a single family home up 5 percent to $632,554.
Closed sales were up 18 percent over last March. Pending sales increased 16 percent. Month’s supply of inventory based on pending sales dropped to under one month. (A supply of three to six months is considered balanced.) The median price of a single family home in King County increased 6 percent over last year to $440,250.