on heat domes and the record sales of homes
The temperature wasn’t the only thing that hit an all-time high in June as home buyers came out in droves throughout King County. This helped to keep a lid on inventory and boosted prices once again.
June’s supply and demand dynamics resulted in predictable price outcomes: on a year- over-year basis, King County’s median sold price was up 17%, the 6th consecutive month where prices were up by double-digit percentages compared to the year previous. High sales counts and rising prices have also yielded bloated sales volumes, with the $4.16 billion that was exchanged within the confines of King County’s housing market in June representing the largest such number for any month in the County’s history. Of course, this is in some ways just part of a broader trend that has seen monthly sales volumes double, on average, in the months since the pandemic began compared to the monthly average from the 15 years preceding the onset of Covid-19. As we look ahead, it’s likely that housing demand in King County has room to run still. Whether this manifests in elevated sales counts specifically during the summer months or not remains to be seen, but if the trend over the past 6 months is any indication, we’re likely in for a strong second- half of 2021 overall.
across King County in June 2021 were the most in any month in at least 15 years (that’s how far back our database goes). This total was driven by a record 3,283 residential sales, as well as 889 condo transactions. Compared to June 2020, last month’s sales were 45% higher, though some of this differential lies in the suppressed activity that we saw last year in the early days of the pandemic; to wit, June 2021’s sales were “only” 28% higher than the past-decade average for the month. On the supply side, the total number of homes for sale was up somewhat in June compared to May (by 8%, compared to a typical seasonal increase of 5%). Despite this, the fact remains that housing inventory is relatively limited: the number of homes available for purchase across King County in June was 33% below the level of June 2020, and a whopping 59% below the long-run June average.
At the time of this report’s writing, things are looking up for denizens of the State of Washington. Indeed, summer and its heat are upon us (ok, maybe it’s been a bit too much heat), 63% of Washingtonians have received at least one dose of the Covid-19 vaccine (and 56% are fully vaccinated), and the State’s unemployment rate is now down to 5.3%--a far cry from the 16.3% of just over a year ago. Add it all up, and it’s very likely that a sizeable proportion of our population will be focussed more on seeing friends and family, and vacationing, than buying and selling real estate during the summer months. Or will they? If June’s numbers are any indication of what might lie ahead in the typically slower months of July and August, we might need to re-visit our summer- housing-slowndown hypothesis, because-- believe it or not--the 4,336 MLS sales tallied
Copyright © 2021 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 July 14, 2021. 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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