housing remains a hot commodity in May Despite a slowdown in the market for residential real estate in King County earlier in the year, homes are selling at an elevated pace as supply remains lacking.
With mortgage rates having risen in recent months, we could see the market equilibrium shift over the summer, which is typically slower anyway. That said, as the State and County economies continue to re-open thanks to rising vaccination rates, the (down) shift may not be as significant as some might be expecting.
Both home types are transacting at elevated levels, with both residential (ground oriented homes) and condos up 20% versus the long- run average for the month. Within King County, last month’s sales in Seattle were 33% above the long-run average, though in Bellevue sales were only 2% higher. On the supply front, May marked the lowest count of inventory (homes for sale) since January, with King County’s 2,775 total listings sitting 41% below their May 2020 level, and 61% below the past-decade May average. Listings of both residential properties and condos were 53% and 19% below last year’s level, respectively; they were also down by 72% (for residential) and 40% (for condos) versus the long-run average. Inventory remains constrained in both Seattle and Bellevue, with listings lower by 30% and 69%, respectively, versus the long-run average.
The very active housing market here in King County since the middle of 2020 has been generating a lot of noise in the data. This remains true when we look at the most recent data, for May, as two fundamental observations about our market continue to hold: demand remains elevated and supply is constrained. After sales fell to 2,028 in January 2021— the lowest monthly count in a year—sales have been steadily rising each month since then, reaching 3,738 in May. This represented the most monthly sales in King County since September 2020, when the regional housing market was re-emerging from suppressed activity at the onset of the pandemic. As such, sales in May 2021 were 79% above those from one year earlier (in May 2020), and 21% higher than the past- decade May average.
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 June 1 4 , 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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