News from NW Multiple Listing Service
FOR IMMEDIATE RELEASE: September 5, 2013

Kirkland, WA – September 5, 2013. Northwest Multiple Listing Service figures for August show brisk sales, escalating prices and some improvement in inventory, prompting one MLS director to declare, “What these numbers tell us loud and clear is that buyer demand in the Puget Sound region is still incredibly strong.” In making that comment, OB Jacobi, president of Windermere Real Estate, noted the housing market tends to experience some slowing during August, but rising inventory levels and sustained buyer demand fueled “higher than expected home sales and another month of strong appreciation.”

The latest figures from Northwest MLS show pending sales (mutually accepted offers) during August increased 8.7 percent from a year ago. Brokers in the 21 counties served by the MLS reported 9,065 pending sales system-wide. That’s a drop of 500 units from July, but an increase of 727 transactions compared to a year ago (August 2012). In the four-county Puget Sound region (King, Kitsap, Pierce, and Snohomish), the total of 6,916 pending sales was the highest volume for August since 2006 when members notched 7,692 sales.

Prices also reflected an upward trajectory. The area-wide median price for last month’s completed sales of single family homes and condominiums was $283,000, which compares to the year ago figure of $250,000 for a gain of 13.2 percent. Only two other months this year have had higher year-over-year increases: March (14.9 percent) and May (13.4 percent). Since January, prices have jumped 18.3 percent.

Prices on single family homes (excluding condos) that sold during August increased from $263,495 to $294,000 for a gain of 11.6 percent.

An analysis by Lennox Scott, chairman and CEO of John L. Scott Real Estate, shows King County median prices for August ($392,500, including single family homes and condos) are at 92.4 percent of the peak price of $425,000, set in July 2007. He credits a surge in sales activity and a shortage of homes for sale as primary drivers of spiking prices during the past two years.

“We have seen 22 straight months of strong-surge sales activity,” Scott reported. “Job growth, pent up demand by local home buyers, residential investors, incoming transferees, a strong local economy and historically low interest rates have led the way during this recovery phase of the residential housing market,” Scott stated.

Northwest MLS director Frank Wilson, the Kitsap District manager and branch managing broker for John L. Scott Poulsbo-Kingston noted prices in Kitsap County have not spiked as much as some other areas during this recovery period. For sales in that county that closed during August, prices rose slightly more than 3 percent compared to a year ago. “Since recovery should be a long-term return to normalcy, there seems to be a bit more sanity in Kitsap,” he remarked.

Despite moderate price gains in Kitsap County, buyers were active, with year-over-year pending sales jumping 19.7 percent.

Inventory is showing signs of stabilizing in many Western Washington areas, with members adding nearly 1,800 more new listings to the MLS database during August compared to the same month a year ago. With that 21 percent increase in new listings, the total number of active listings at month end (26,433) was almost on par with a year ago when the selection encompassed 26,506 homes for sale.

Dick Beeson, the principal managing broker of RE/MAX Professionals in Tacoma, noted some key indicators are trending lower or slower as the market adjusts to a “new normal.” The former chair of Northwest MLS also said it would be hard to continue the near record-setting pace of the last few months.

“While the overall market remains vibrant and active, we don’t appear to have the frantic ‘must have this home because there may not be another’ mentality among buyers,” Beeson reported, adding, “The increase in both inventory — a near return to 2012 levels — and the sharp increase in interest rates have been the most influential factors in an end-of-the-summer market adjustment.”

Another past chairman of Northwest MLS, Mike Gain, said inventory shortages are still common in many parts of King County. MLS figures show of 22 of the 29 map areas it tracks in King County had fewer listings at the end of August than at the same time a year ago.

Measured by months of supply, King County, with only 1.7 months of supply, is well below the 4-to-6-month level that many analysts use as an indicator of healthy levels or a balanced market. The selection is also squeezed in Snohomish County, where there is 1.8 months of supply. System-wide, the figure is at 2.9 months.

Gain, the CEO and president of Prudential Northwest Realty Associates, said many industry-watchers predicted rising interest rates would slow down the market. “Well, it has not, because despite jumps in prices and interest rates, homes are still more affordable than they have been in decades.” He said buyers are on “heightened alert” because of the recent upward movement in interest rates. “We don’t expect interest rates to stay as low as they are today and prices in our area are expected to continue to rise. For anyone who is thinking of buying, now is the time,” he suggests.

Darin Stenvers, a director with Northwest MLS, called the current market “the strongest in four or five years,” with signs of stability that should continue into 2014. “If a buyer finds the home of their dreams, they should make their first offer their best offer or risk losing that home,” he stated.

Stenvers, the managing broker at John L. Scott in Bellingham, also offered advice to sellers who have unrealistic expectations. “Sellers should still be concerned about overpricing their homes,” he emphasized. “Some markets may handle the overpricing, others will not,” he noted, adding, “While sales are brisk, many sellers are not getting the full listing price.” Price reductions and/or financing contributions may be needed to assist buyers.

The condominium market is rebounding in some areas, offering a good alternative for renters who are seeking good housing at affordable prices. Although the inventory is still below year-ago levels (down 4.8 percent), Stenvers said there is a good selection with great pricing options. Also, he pointed out buyers can purchase with a down payment that is in line with landlord demands for upfront rent and large deposits, and have a more affordable monthly payment.

Pending sales of condos area-wide rose about 6.3 percent during August. Closed sales jumped more than 17.4 percent, with prices surging 26.7 percent.

“We are definitely working our way nicely through this housing recovery, with all of the latest data showing strong year-over-year gains in prices and sales of both pending and closed transactions,” Gain commented. He also noted the National Association of Realtors® (NAR) reported the national median existing home price increased at an annual rate of 12.2 percent – the biggest yearly price increase since Q4 of 2005.
Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.
Statistical summary follows.

Statistical Summary by Counties: Market Activity Summary – August 2013

Single Family Homes + Condos	LISTINGS		PENDING SALES	CLOSED SALES			MONTHS SUPPLY
	New Listings	Total Active	# Pending Sales	# Closings	Avg. Price	Median Price
King	3,893	6,171	3,567	3,227	467,308	392,500	1.73
Snohomish	1,424	2,565	1,402	1,143	321,265	295,000	1.83
Pierce	1,598	3,769	1,486	1,250	246,808	225,000	2.54
Kitsap	493	1,559	461	383	305,872	253,750	3.38
Mason	162	849	115	101	190,301	158,900	7.38
Skagit	241	890	205	171	247,363	229,000	4.34
Grays Hrbor	151	886	101	95	133,063	110,000	8.77
Lewis	160	770	106	86	163,194	149,700	7.26
Cowlitz	144	519	123	97	164,438	156,000	4.22
Grant	96	572	80	80	170,623	162,750	7.15
Thurston	509	1355	410	361	246,638	235,000	3.30
San Juan	37	449	30	31	466,435	389,000	14.97
Island	203	904	157	160	296,384	244,500	5.76
Kittitas	85	490	80	58	241,643	186,700	6.13
Jefferson	64	510	69	55	271,681	252,000	7.39
Okanogan	61	493	46	32	259,738	192,765	10.72
Whatcom	484	1722	348	274	277,350	253,400	4.95
Clark	63	199	56	57	242410	235,800	3.55
Pacific	71	497	52	38	147,861	140,000	9.56
Ferry	8	69	5	3	155,000	125,000	13.8
Clallam	75	481	71	59	205,744	185,000	6.77
Others	150	714	95	70	244,831	204,500	7.52
MLS TOTAL	10,172	26,433	9,065	7,841	$348,736	$283,000	2.92

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	3706	4778	5903	5116	5490	5079	4928	5432	4569	4675	4126	3166
2001	4334	5056	5722	5399	5631	5568	5434	5544	4040	4387	4155	3430
2002	4293	4735	5569	5436	6131	5212	5525	6215	5394	5777	4966	4153
2003	4746	5290	6889	6837	7148	7202	7673	7135	6698	6552	4904	4454
2004	4521	6284	8073	7910	7888	8186	7583	7464	6984	6761	6228	5195
2005	5426	6833	8801	8420	8610	8896	8207	8784	7561	7157	6188	4837
2006	5275	6032	8174	7651	8411	8094	7121	7692	6216	6403	5292	4346
2007	4869	6239	7192	6974	7311	6876	6371	5580	4153	4447	3896	2975
2008	3291	4167	4520	4624	4526	4765	4580	4584	4445	3346	2841	2432
2009	3250	3407	4262	5372	5498	5963	5551	5764	5825	5702	3829	3440
2010	4381	5211	6821	7368	4058	4239	4306	4520	4350	4376	3938	3474
2011	4272	4767	6049	5732	5963	5868	5657	5944	5299	5384	4814	4197
2012	4921	6069	7386	7015	7295	6733	6489	6341	5871	6453	5188	4181
2013	5548	6095	7400	7462	7743	7374	7264	6916

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