The Neighborhood Connection: August
GREETINGS, SUMMER!
We’ve been fortunate to experience some incredible weather during the Dog Days of summer, and no one has enjoyed it more than my dog, Frankie! I’ve included a picture here of her reveling in all that the Puget Sound has to offer.
This summer has been truly exceptional, with some of the finest weather I can remember in my entire life living here. However, I’m eagerly looking forward to the remaining weeks of summer and September, which are always reliably nice but gradually transitioning into fall. I hope you and your family were able to take advantage of the gorgeous weather and enjoy your vacations. I’d love to hear all about them!
In terms of the real estate market, the Pacific NW is still grappling with extremely low inventory levels. Buyers who have been hoping for new listings to enter the market are finding themselves disappointed, and those seeking a bargain are even more discouraged.
The Northwest MLS report for June revealed that we have around six weeks of supply (1.55 months). The latest NWMLS report shows a nearly 21% decrease in the number of active listings for single-family homes and condominiums compared to June 2022 (10,607 versus 13,405). Inventory for single-family homes, excluding condos, has decreased by about 22.4%, while condo inventory has declined by 9.2%.
Pending sales for June totaled 7,759, representing a decline of approximately 4.4% from May’s total of 8,120 and a 13.2% drop from the previous year’s total of 8,937. Although last month saw the highest number of closings since September, the volume was down by about 24% compared to June 2022.
On the pricing front, residential properties (single-family homes) in King County have seen a 19.7% increase in the median sold price year to date (YTD). It’s worth noting that we are still slightly below the peak prices of May 2022, but these numbers are incredibly encouraging. The list-to-sell price ratio is hovering around 100%, indicating that price concessions are simply not happening due to the scarcity of inventory.
Looking ahead, we anticipate interest rates to decline by the end of the year, which should help stimulate some inventory growth but will also lead to increased buyer demand. There is still a significant amount of pent-up buyer demand, and I believe that 2024 will be a remarkable year in the real estate world.
As always, if you have any questions or would like to assess the current value of your home, please don’t hesitate to reach out! Our reach at Sotheby’s International Realty extends globally, so if you have any needs outside of our market area, I would be delighted to connect you with an exceptional local professional in other markets.
Enjoy the sunshine and warm weather!
With gratitude, Michele
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