singing a different tune in June In a month that is typically King County’s most active, June sales fell to an unseasonably low count while inventory increased, as expected. Many buyers and sellers continue to await a rate cut, which may now soon be on the horizon.
townhomes and condos. The median sold price of single-family homes was 5% above last year’s value, while townhome and condo prices were 10% and 6% higher, respectively. June dampened the acceleration of activity in May, as the current interest rate environment continues to restrict the King County market. As of last week, a 30-year fixed-rate mortgage remained just shy of 7.00% according to Freddie Mac, but some relief could be on the horizon thanks to consecutive economic data releases. These include the Consumer Price Index and Personal Consumption Expenditures price index for May, showing inflation in retreat, as well as a soft jobs report in June indicating a cooling economy, all of which have rendered a September rate cut by the Fed to be firmly in play. The backseat approach that many buyers and sellers are adopting in this challenging market will translate to activity at some point, and a rate cut—or the anticipation of one—might be the catalyst.
As June came to a close, it became clear that the spike in market activity realized in May was but a flash in the pan. Typically, June marks the busiest month of the year for transaction counts in the King County real estate market, but the hotter weather we’ve seen here in the Evergreen State did not translate to warmer home buying sentiment last month. While June has averaged roughly 3,500 sales over the past decade, there were only 2,291 sales last month, which is 35% below that 10-year average and the lowest count for any June in at least the past 12 years. June sales were also down 13% compared to May—a month-over-month period when sales typically increase by 10%. One aspect of the market that did follow seasonal trends in June, albeit only somewhat, was inventory. Historically, inventory has expanded by an average of 11% between May and June and, with inventory rising from almost 3,600 listings
in May to just shy of 4,000 in June, this year was right on trend. We say inventory only followed seasonal trends ‘somewhat’ because last month’s inventory count was 8% below the past 10-year June average. Interestingly enough, it was only the single-family home segment (which represents over half of all inventory) that was constrained. Single- family homes were 30% below their past- decade average, while townhome inventory reached an all-time high (and was 59% above that same historical benchmark) and condos reached a level not seen since November 2020 (39% above that historical benchmark). Although median sold prices fluctuated in June—falling 7% from May for single- family homes, 4% for condos, and rising slightly (0.2%) for townhomes—they remain elevated. Year-over-year increases were realized across all home types last month, a streak that has reached eight months for single-family homes and nine months for both
Information and statistics derived from Northwest Multiple Listing Service. Copyright © July 8, 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 July 8, 2024. 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.
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