Published October 15, 2019
October '19 - Market Update
Autumn is here, and we're seeing the first frost of the season though, despite colder temperatures, the real estate market is staying warm.
Inventory
The balance of buyers to sellers is holding steady with a slight trend toward a more seller favored market in the region. For most of the year, we've stayed between 2-3 months of inventory which favors Sellers though not the degree we experienced in 2015-17.
Interest Rates
A major driver of buyer demand is low-interest rates which continue to stay in the 3.65% range which has improved housing affordability by more than 10% for most borrowers. This is enabling more first time buyers to get into the market as owning is outperforming renting for most.
New Construction
Newly built homes are part of the key to helping our market find more balance, and we're seeing increased availability of new homes in the region. In September 1482 homes were available and 445 sold. Whereas, 2 years ago only 777 homes were on the market with 483 sales. So the availability of new construction is up by about 50% compared with just a few years ago while still being only at about 3-4 months of inventory which is a neutral/balanced market.
Employment & Wages
We're continuing to see strong employment and wage growth in the region which is certainly helping with demand as more people are able to afford homeownership.
Home Values
In King County, the median home price is $595,000 which is 4.4% higher than January though 2.3% lower than one year ago. Compared with 3 years ago, values are up 20.9% and up more than 43% over a 5-year horizon.
Snohomish county values are $465,000 10.7% higher than January, 3.3% higher than 1 year ago. Compared with 3 years ago, values are up 24.0% and up 52.5% over 5 years.
Conclusions
The market is healthy and full of opportunity. It's an excellent time for buyers with interest rates driving improved affordability, and it's also a great time for sellers - especially those who want to buy a home. While there is more competition, most homeowners experienced significant gains in the past 3-5 years to leverage into a great purchase of a new home that better meets your long term needs, wants and goals.
