a hot start to spring remains elusive King County falls short of a hot start to spring, as sales remain below their long-run average and inventory constrained. Relief, in the form of a rate cut, has become increasingly unclear owing to a strong jobs report and stubborn inflation.
and townhomes, respectively, while being 3% lower for condos. On a month-over-month basis, this marks two consecutive months of increases for single-family home and townhome prices while marking the first decrease in condo prices in six months. Compared to last year, prices rose across all home types, with single- family home prices 16% above March 2023 (the fifth consecutive year-over-year increase), townhome prices 15% higher, and condo prices 8% higher (both marking the sixth consecutive year-over-year increase). The latest data points to momentum that has slowed, with the temperature from January and February cooling slightly as the hot start to spring remained elusive in March. Unfortunately, the relief buyers are looking for in a rate cut seems to have grown in distance. The most recent jobs report and Consumer Price Index (CPI) data revealing stubborn inflation means the door on a rate cut in June has closed and the idea of three rate cuts in 2024 is in jeopardy. The question now is how hot the spring market will get with two months to go.
The start of 2024 had headlines clamoring that the King County market was heating up—and rightfully so. Sales in January had increased year-over-year for the first time in over two years and that trend continued in February (as sales rose 41% month-over-month, above the typical 18% increase realized between January and February). Inventory remained constrained but witnessed some relief in February as new listings climbed. These dynamics occurred as rates had fallen from their relative peak back in October to the 6.6% for a 30-year fixed rate mortgage range during January and most of February. This resulted in a sense of momentum building, positioning the market for an active spring. Now, with the latest data from MLS for March, there has proven to be a little stagnation in that momentum. Sales, for example, climbed to 2,022, 28% above last month but below their past-decade average (by 24%) and, in contrast with January and February, lower year-over- year (by 0.9%). With this said, the year-over-
year decline was largely driven by a decrease of 4% in single-family home sales (condo and townhome sales were up 0.3% and 10%, respectively, compared to last year). On the inventory front, total listings available at the end of March were up 7% versus last month (below the typical seasonal increase of 12%). Inventory was 11% below March 2023 and 28% below the past-decade average (again, in contrast to January and February where inventory eclipsed the past 10-year average and was approaching a year-over-year increase for the first time since April 2023). New listings in March were up 16% versus February (well below the typical increase of 43%) and up 4% versus last year (below January and February’s year-over-year increase of 111% and 42%, respectively). Relatively speaking, the one thing that has remained constant when comparing March to the start of the year have been prices continuing to climb. The median sold price in King County was 5% and 3% above last month for single-family homes
Copyright © April 10, 2024 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 April 10, 2024. All data from Northwest Multiple Listing Service & 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
Made with FlippingBook - professional solution for displaying marketing and sales documents online