November Market Update
According to the Northwest Multiple Listing Service (NWMLS), figures for November show a 13.2 percent drop in inventory of single family homes and condominiums. For the 4-county Puget Sound region there is only 1.22 months of supply, with King County having the lowest level at under a month (0.96). There was a 9.4 percent gain in pending sales, a 31.3 percent spike in closed sales, and an 11 percent increase in prices compared to the same month one year ago.
The Puget Sound area is still a prime market for selling a home. The supply of homes continues to remain historically low and prices are still improving.
“November’s pending sales for the four-county area of King, Snohomish, Pierce and Kitsap were the highest since 2005. There were 44 percent more pending sales than new listings,” noted J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, who described market activity as a mini power surge.
“The seemingly inexhaustible supply of ready, willing and able buyers continues to purchase available inventory. This imbalance in supply and demand continues to fuel multiple offers and drive prices upward,” said John Deely, the principal managing broker at Coldwell Banker Bain in Seattle.
Both Deely and Scott felt that increasing interest rates could actually drive more buyers into the market. According to Scott, “every time interest rates increase 0.5 percent we see these surges because buyers become anxious about increasing rates …”. Deely added, “… a tick up in interest rates can entice more sellers to the market.”
An additional observation to note: There are suggestions of easing mortgage underwriting guidelines by the new Administration, which may also drive additional buyers into the market.
Whatever the ingredients, everyone seems to agree that the Puget Sound market will be very busy in 2017.
As an investor, this is a great time to leverage Veristone’s creative financing. Give us a call to see how we can help you get started.
With our real estate network, we may have additional project contacts for you. In this market, sourcing a fixer-property via a “pocket listing” can be the way to find what others can’t.
What is a pocket listing? Check our next blog as we investigate powerful strategies for finding off-market buying opportunities.