prices jump… but how high? Last month, many buyers went from calling to closing as sales rose for the first time in five months. On the supply-side, inventory remained constrained as would-be sellers held onto favorable rates—all leading to prices seeing significant increases.
as residential home prices were 9% above last month and 16% above last year while condo prices were 10% and 18% higher, respectively. It would be premature to say the tide has turned but the reality is that the market continues to move in that direction. In what direction you may say? A place where we can officially declare that market activity has stumbled out of the rut it has found itself in over the past two years. The Fed cutting interest rates, whenever that may occur, will have a sizable impact on not only purchasing power for home buyers across the region but the expansion of inventory that is lacking in today’s environment (although fluctuation in prices will have an effect on both). For now, momentum continues to build as we march into what’s poised to be a lively spring market.
Brokers may have heard their ringtone a little more than usual this past month, fielding calls from buyers who were increasingly busy dialing. This anecdote on the King County market and its growing activity is not only confirmed by on-the-ground perspectives but by the latest data from Northwest MLS. Last month, many buyers went from calling to closing as sales rose to 1,534—a 45% increase from last month which is well above the typical January-to-February seasonal increase of 18%. Notably, sales were still 21% below their past-decade average and were 1.7% lower versus February of last year. With this said, residential homes drove this year-over- year decline, being 6% below its count for the previous year, while condo sales were 12% above February 2023. This recent trend of sales steadily turning a corner has been occurring for the past few months but the reality is
that choice remains limited for those looking to purchase a home. Inventory was 18% below its past-decade average as would-be sellers decide to hold onto their home—homes where they have most likely locked-in rates that are much more favorable than today’s environment (although it’s improving, slowly). With this said, inventory did jump 18% versus last month, well above the typical seasonal increase of 1.7%, thanks to a growing influx of new listings (which rose 33% versus last month and increased 40% year- over-year). These dynamics of supply and demand in the market have no doubt had an impact on prices in February. The median sold price in King County was 5% above last month (rising to $840,000), its largest such increase since March 2022 while, on a year-over-year basis, prices rose by double-digits (15% above last year). There was consistency across home types
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