Real estate inventory in the Northwest is on the rise again! According to the MLS report, 14,524 new listings were added during May, which is the first time volume was over 14,000 in more than a decade!
Brokers and home buyers alike are encouraged by the figures showing gains in inventory. But, we are still keeping an eye on prices and interest rates steadily increasing, as well. In fact, compared to a year ago, the median sale price for a single family home and condo in May was $420,000, which is 11% higher from the year ago price of $378,475. But with inventory on the rise, it is the best time of year for potential buyers. More listings create more opportunities for buyers. With a broader selection, more buyers can purchase homes regardless of increased prices, slightly higher interest rates, and a higher down payment. Hopefully this is a beginning of a trend!
It appears that continuing bidding wars are contributing to rising prices. Fifteen counties had double-digit price hikes for single family homes and condos combined compared to year ago. For instance, King County median sales price on all homes rose over 16%, from $560,000 to $650,000.
It will be interesting to see how the head tax on businesses in Seattle and retiring boomers will effect the real estate market in the coming year. If companies elect to relocate from Seattle to the Eastside, it is likely that their employees will also make the move. Additionally, Seattle may be too expensive of a city to retire in right now. We may see boomers move away from the city as they retire.