All the hullabaloo of 2022 King Country’s sub-2,000 sales count in December marked 6 straight months of sub-3,000 sales. That said, the housing market—having been hobbled by high and rising interest rates against a backdrop of persistently aggressive inflation—is likely to see brighter days as the year progresses.
the continuation of sellers’ market conditions throughout the County. Demand continues to be suppressed by the Federal Reserve’s hawkish monetary policy. With the Fed indicating the likelihood of at least one more rate hike in 2023, it is unlikely that the County’s housing market will evolve away from its recent (and current) trajectory in the immediate future. Despite all of this, and in light of our analysis of the direction and magnitude of underlying inflationary pressures (which are abating), we remain cautiously optimistic that the latter part of 2023 will be characterized by lower interest rates, ameliorated inflation, and a more active housing market.
Furthermore, last year’s sales count was the lowest since 2011. Notably, more than half (56%, to be exact) of 2022’s sales occurred in the first half of the year, with the remaining 44% occurring in the second half. This contrasts with the typical experience of the past decade, when more sales occurred, on average, in the second half of the year (52%) than in the first half (48%). By the end of 2022, there were 3,246 homes for sale across King County, with inventory in December both having declined by 3 consecutive months and sitting 22% lower than the past-decade average. The 2.2 months of inventory (MOI) in King County in December was not very different from December 2021’s MOI 2.6, indicating
Having noted the downward monthly sales path in each of the past two editions of the rennie review (here and here), December followed the trend, tallying a mere 1,501 sales County- wide; this was the lowest-recorded December count ever, save for 2008. Last month’s tally was also 44% less than December 2021’s 2,661 sales, and 41% less than the past-10-year average. This marks the first time since June 2020 (in the thick of the pandemic) that the County has experienced 6 straight months (and likely counting) without hitting the 3,000-sales threshold. Last year’s total County-wide MLS sales finished at 29,616, which was 26% less than the record-setting total from 2021 and 14% below the past-10-year average.
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 January 9, 2023. 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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