June sales reflect growing buyer confidence
Housing demand across King County rose in June after stagnating in May, with the past month registering the most sales of any month since October 2019. The near-term outlook is positive for sellers with supply constrained and the economy cautiously re-opening.
with the sale of properties under $1 million rising by only 27% betweenMay and June, compared to 69% growth in the $1 million- plus segment. Meanwhile, month-over-month sales growth in Bellevue was more balanced between the under-$1 million and the $1 million-plus segments (with the former rising 73% and the patter 57%). With inventory still constrained--across King County, the 4,396 homes for sale in June were 38% lower than in June 2019 and 50% below the long-run June average--andWashington State’s economy slowly re-opening, it is likely that conditions will remain favorable to sellers in the months ahead. That said, the ongoing health crisis has created persistent uncertainty around the longer-run outlook; with this in mind, the ongoing monitoring of relevant macroeconomic data and local housing market trends will be paramount.
Notably, County-wide sales counts for each of residential homes and for condos were both higher in June versus May, with the former rising by 31% and the latter by 36%. Within the County, Bellevue condo sales posted impressive month-over-month growth--albeit based on a relatively small sample of 47 sales-- at 81%, with residential home sales in Bellevue rising by 55%. In comparison, Seattle condo sales rose by 21% in June versus May, while residential home sales increased by 36%. The notion that buyer confidence has returned, or remains, across the King County market is supported by pattern of sales increases across the price spectrum. For example, while almost four out of every five sales in King County in June was below $1 million, six-figure sales rose by only 31% betweenMay and June, compared to a 64% increase in homes sales valued at $1 million or more. A similar pattern was seen in Seattle,
June was a strong month for Seattle’s real estate market, with King County tallying 2,797MLS sales; this was the highest monthly count in 2020 so far, and the most sales since October 2019’s 2,927. June’s total sales count was also 35% higher than the 2,080 sales registered inMay, compared to the typical May-to-June increase of 7% seen over the past decade. Speaking broadly, buyers in this market appear to be remaining confident about both the near-term and longer-term prospects of King County real estate, despite the significant ongoing economic challenges stemming from the global health crisis and its resurgence in parts of the United States. Within King County, both the city of Seattle and the city of Bellevue exhibited significant month-over-month surges in sales in June, with the 927 sales in Seattle up 33% over May, and the 152 sales in Bellevue up 62%.
Copyright © 2020 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 ofJuly 1, 2020. 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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