More single-family homes available in Seattle

Coldwell Banker Bain released its second quarterly market report on July 15, providing a variety of statistics for the sale of homes in neighborhoods and counties throughout the Puget Sound region. The second quarter report reflects activity between April 1, 2016 and July 1, 2016. 

Reflecting on the brokerage’s second quarter numbers, CEO and owner Bill Riss said, “We thought it would be interesting to look at how the market is doing compared to the same time last year. Some good news for buyers interested in Seattle proper — we’re seeing an increase in available single-family homes over last year in the Ballard/Greenlake, Capitol Hill, Seattle Central, South Lake Union and Queen Anne neighborhoods. While these areas have been extremely active this year, there is inventory available … Certainly much more than last year.” 

In Madison Park, Michelle Van Tassell, Principal Managing Broker of CB Bain’s newly opened luxury office commented, “While the Madison Park area continues to experience relatively modest increases in inventory compared to 2015 Q2, there is a bit of relief for buyers in that the increase in days on market provides valuable time for buyers to consider their options, pursue more thorough due diligence and ultimately craft offers with greater confidence.“

Said Mike Flynn of CB Bain’s Tacoma office, “Purchasing pressure brought by population growth locally, plus move-over buyers from King County, are keeping sales units high and causing prices to edge up.  Inventory is noticeably lower than last year.  North Tacoma, University Place and Lakewood, each rich in character and boasting a wide variety of home sizes and styles, are extraordinarily popular.  The result has been a current inventory in that market sector nearly 30 percent lower than this time last year.”

Flynn continued, “On the other hand, the greatest number of Pierce County new homes today are found in Gig Harbor, Puyallup and Bonney Lake/Lake Tapps.  Growing communities in lovely surroundings….small wonder they are popular!”

Seattle and South Sound stats can be found here: http://www.larsonmarcom.com/wp-content/uploads/2016/07/Seattle-and-South-Sound-Stats.pdf

Eastside

“Our Eastside market was scorching hot in the second quarter,” commented Thadine Bak, principal managing broker of CB Bain’s Bellevue office.  “Inventory was crazy low for most of the quarter,” Bak said. “We saw buyer demand dramatically outpace supply.“  Bak pointed out the fact that while a balanced real estate market typically has between three and six months’ supply of homes for sale, some Bellevue neighborhoods averaged three quarters of a month’s supply throughout the second quarter.  

While single-family homes were hot, Bak noted that the Eastside condo market was “even hotter” in the second quarter. “New condo listings lagged way behind demand,” Bak said, “since condos were the best alternative for many first-time buyers who were priced out of single family homes.” Bak also observed that with Eastside cities building up their urban cores, downtown living in Bellevue, Redmond and Kirkland has become extremely desirable to millennials and downsizing baby boomers alike. “During the downturn condos on the Eastside were languishing,” Bak noted, “but now they’re selling quickly and with multiple offers.”  

As for the market for luxury homes on the Eastside, Bak said the second quarter brought a record number of sales above $2M. “Luxury is one segment in which we’ve actually experienced an increase in inventory,” Bak said. “This is primarily due to strong demand in the middle price segments pushing many homes in hot neighborhoods into luxury price tiers for the first time.” She cited the 112.5 percent increase in the number of Clyde Hill homes sold for $2M and higher (Q2 2016 vs. Q2 2015) as representative of this trend. “Phenomenally strong buyer demand and absurdly low inventory have crashed into each other at full speed, pushing prices up, up, up.” Bak said. “For the most part, Eastsiders who decided to list their homes this Spring were very happy with the outcome.”

And in Mercer Island, EJ Bowlds, Principal Managing Broker of CB Bain’s Mercer Island office, said “Regarding the Mercer Island numbers; at the end of June 2015 there were 64 active residential listings on Mercer Island, and last month there were 77.  This is the first time in four years that standing inventory has outpaced the previous year by any meaningful amount. And while the increase in homes available for sale is encouraging for buyers we need to remember that the 10-year average for standing inventory on Mercer Island for this time of year is 123 listings. So there is still a ways to go before we reach any kind of a balanced market on Mercer Island.”

Eastside stats here: http://www.larsonmarcom.com/wp-content/uploads/2016/07/Eastside-stats.pdf

North Sound and Counties

Diedre Haines, Principal Managing Broker of CB Bain’s Lynnwood and Edmonds offices, said “The summer slowdown has started a little early this year in Snohomish County. We usually don’t see this until August. I attribute the earliness to the continued dearth of saleable listings on market, the frustrations regarding our political climate and fear regarding the upcoming election, Brexit, riots, and all of the things that are impacting us in the external environment. The CPFB and TRID changes to finance have been around long enough now that we are beginning to see both the positive and negative effects.”

Haines further observed, “We are also once again seeing the specter of low appraisals creating a plethora of failed sales. The good news is our county economic situation is stable and strong, new construction is beginning to appear in large clusters, interest rates, despite earlier predictions on increases, remain low, and for us, appreciation is steady and healthy. No signs of a bubble here!”

Lastly, Haines noted, “Buyers are taking a summer time break, so now, right now, is a good time for those buyers that have felt fatigued, discouraged, and frustrated to make their offers as there is less competition. I expect the fall market to be exceedingly busy, especially once we are past the election and fear of the unknown, the outcome, has somewhat diminished.”

North Sound and Counties stats here: http://www.larsonmarcom.com/wp-content/uploads/2016/07/North-Sound-and-Counties-stats.pdf

Information and statistics derived from the Northwest Multiple Listing Service (NWMLS) each quarter. Statistics not compiled or published by the Northwest Multiple Listing Service.