As we know, June is the start of the long days of Summer and is usually a mixed bag weather-wise. We all know that Summer “officially” starts in Seattle on July 5. This year, not so much as June weather was pretty darn decent and July is, well, a bit disappointing for us sun lovers. One could say that the Eastside housing market mirrored our nice June weather as it continues to shine and reversed May’s median price decline with a slight increase. As always, there are interesting things to look at each month so let’s dig in.
Months Supply of Inventory. It’s a term that real estate professionals use to assess the overall health of the housing market health. The lower the number means that there are fewer active listings compared to sold properties. That’s good for sellers. The higher that number means there is a lot of inventory compared to sold properties. That’s good for buyers. As the chart shows, the months supply of inventory in June, 2019 was 50% greater than in June, 2018 and more than double that of June 2017. While pending transactions are still strong, the number of active listings on the market hit the highest number since 2012. It’s worth noting that these rates of growth were a bit less than increases we saw in May. 1.8 months of supply is still historically low and indicative of a seller’s market but the inventory trend continues to rise which is good news for buyers.
The last two months, we saw the median prices drop year over year. Things reversed this month as Eastside prices overall rose 2% compared to June, 2018 and 9% compared to the same month in 2017. With the inventory growth, seller’s appear ready to take advantage of the increased equity in their property and the market is responding.
I love this next graph which compares not only June, 2019 with the prior June but also with the previous month of May, 2019. These numbers start to tell a very interesting story for sellers. In June, 2019, 48% of sellers were able to sell their home at or above the list price compared to a whopping 67% of sellers in June of 2018. And this number was in line with the previous month which saw 50% of sellers having that same experience. At the opposite end of the spectrum, 52% of sellers sold their home below list price or had to do a price drop before selling their home compared to only 33% of home sellers in the same month a year ago.
We know that there are submarkets in every area market based on price. This next chart shows a breakdown of closed sales in 7 different price segments on the Eastside compared to the same month in the prior year. It’s interesting to note that while the overall market is down just slightly for the year, the 500-749K segment is performing extremely well while the 750-999K segment is struggling, relatively speaking.
Finally, here is a summary section broken out in single family residential vs. condominiums.
So, what do these numbers tell us? April and May were months that started to show a significant move toward the buyer direction. We reversed that trend a bit in June as prices went up, although inventory continues to build. We are certainly not seeing nearly the number of multiple offer scenarios and many more sellers are experiencing the challenges of a home not priced properly. More days on the market, more time waiting and more uncertainty.
If you would like the entire market statistic report packed with even more interesting charts and information, please email me at firstname.lastname@example.org and I will send it your way. In addition, please let me know if you would like a complimentary market analysis of your home or if you know someone who is looking to buy or sell.
*All statistical information created by Windermere Real Estate/East Inc. using NWMLS data, but information was not verified or published by NWMLS.