King County’s housing market springs forward April brought with it increases in the number of home sales, homes available for purchase, and median prices. Notably, the expansion of housing supply in particular—while much-needed— has been insufficient to bring the local market into relative balance.
Following recent trends in sales and listings, market conditions across King County have moderated over the past couple of months: as measured by the months-of-inventory metric (which increased to 0.83 in April from 0.67 in March), conditions have markedly improved for buyers insofar as having a greater range of housing options to choose from is concerned. Despite this recent evolution, King County’s market remains tilted in favor of sellers, with median prices having been on the rise of late. In April, for example, the all-homes median price was up 18% on a year-over-year basis, with almost all of that gain coming in the most recent two months (due to a 16% jump between February and April). With all of this in mind, we can firmly say that housing market conditions in King County are on their way to normalizing— though, like frosty temperatures that have persisted into May, the market still has some ways to go before it feels like a typical spring.
As the calendar flips from March to April, two things are usually certain here in the Pacific Northwest: temperatures rise as the weather improves, and local housing market activity surges as both sales and listings expand. This year, the weather may not have improved much (yet), but the latter did transpire—sort of. On the sales front, the 9% increase in MLS transactions that we usually experience in King County between March and April was only 6% this year. However, the 3,268 sales in April are tied for the second-most in any April for which we have data (i.e. going back to 2006). The all-time April high in sales was recorded—of course—last year, so this year’s total was actually 11% lower on a year-over-year basis. Relative to the past 10-year average, though, April’s sales count was 13% higher.
The lens through which we view April’s listings count (that is, compared to 2021’s record-breaking low level) can also distort the current reality of MLS housing supply in King County. Looking back one month, we noted in this space in April that while inventory increased by 28% between February and March 2022, it still represented an all-time low for March. Well, here we are in May, and sure enough a similar picture has emerged: the number of homes for sale increased 33% from March to April, and yet the 2,726 homes available at the end of the month were the lowest total for any April. In short, the supply of homes for sale continues to spring back in the direction of a more balanced market, but 2022 began with such a dearth of listings that the current level is still objectively constrained.
Copyright © 2022 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of May 10, 2022. All data from Real Estate Board of Greater Vancouver and Fraser Valley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 3
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