Seattle rennie review - February 2022

Little relief for King County home buyers in January

The total number of homes for sale in King County fell to a new record low in January... again. That makes it three straight months in which the previous month’s record was broken, as options for buyers dwindle and sales retreat to a decade-low.

In many ways, our local housing market here in King County began 2022 where it left off in 2021, with conditions continuing to strongly favor sellers. And for the fourth consecutive month, the total number of homes for sale declined, as supply is constrained at such a historically low level that it appears to be limiting sales counts. Specifically, the total number of homes for sale fell by 5% in January—and, notably, from an already record low total (the data goes back to 2006). This decline in inventory brought the total homes for sale to just 1,236 by the end of the month, a level that was 55% lower than in January 2021, and the third consecutive month that King County saw its record broken. The previous

low-water mark for homes for sale in King County prior to 2021 was 2,445 (set in December 2017); January’s total comes in at close to half of that amount. As mentioned, closed sales took a bit of a breather in January, with last month’s 1,587 MLS transactions being 22% lower than one year ago and 8% lower than the past 10-year January average. January’s total represents the fewest number of closed sales recorded in King County in any month since January 2012. Interestingly, while the number of closed sales was down compared to the past decade, it still exceeded the total number of homes for sale at the end of the month. This put the overall months-of-inventory figure for King County at just 0.8, which

is the eleventh consecutive month our local housing market has had less than one month’s worth of homes available for sale. As we look ahead, it’s worth noting that the typical seasonal pattern in the early part of the year is one of rising inventory. King County, however, has yet to see homes for sale rise so far in 2022, and is starting from a point where it is so dramatically supply- constrained that it will take more than a month or two of rising supply to alter overall market dynamics. So without a major influx of homes for sale, expect this tight sellers’ market to continue into the spring market and beyond.

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 February 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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