Low Interest Rates, Low Inventory & High Buyer Demand Drive the Seattle Housing Market
Many would say that they expect the competition for homes to ease somewhat over the holidays, but the latest statistics from Northwest Multiple Listing Service indicate activity is unusually strong heading toward the end of 2020.
One indicator of brisk activity is the ratio of pending sales to new listings. November’s 8,584 pending sales outgained the month’s new listings, which totaled 6,425 area-wide, continuing a pattern reported during much of the year. New listings surpassed pending sales during only two months (March and April) this year, resulting in the depleted supply of active listings. In November pending sales for King County totaled 2,203 while new listings came in at only 1,702. The absorption of standing inventory kept King County’s residential supply (single family homes) at 0.67 months. A closer look at the MLS report for all counties shows the shortages are most acute for single family homes, while the condo supply improved. Thirteen of the 23 counties in the MLS report had less than one month of supply at month end. Overall, there was about three weeks of inventory at the end of November, well below the four-to-six months many analysts use as a gauge of a balanced market.
This imbalance in the market and high buyer demand fueled by historically low interest rates is making for an extremely competitive housing market. The sub-3% interest rates for home mortgages coupled with people looking to upsize for in-home offices or expanding families, or downsize for retirement, or looking for a starter home makes for an extremely active market that many want to be a part of.
Buyers need to be ready to compete…
Lake & Company brokers report that if buyers want the best chance to have their offer accepted they must get pre-approved with a local lender or have cash. Buyers also need to be prepared to have a pre-inspection in order to waive that contingency, and be ready to escalate in their offer price if necessary.
Please reach out to me with any questions. I would be happy to answer any questions about the market or help with your real estate plans. With the proper guidance you will find success in this fast paced market I look forward to talking with you