Even as sales and listings progress, more is still less. While King County’s housing market saw an increase in sales and inventory in May, both remained below past-decade averages. And even though the Fed held interest rates steady in June, hints at future increases bring with them uncertainty to the US and King County housing markets.
With sales counts expanding at a faster relative rate than inventory, market conditions tightened further. The overall Months of Inventory (MOI) fell to 1.5 (from a previous 1.6), favoring sellers yet again. (Note that the market is classified as favoring sellers when the MOI is below 4.0.) A similar story rings true for the residential and condominium market segments, with MOIs of 1.6 and 1.4 respectively. On June 14th, the Federal Reserve held its policy rate range steady at 5.00%-5.25%-- its first hold after 10 consecutive increases. However, with US inflation still stubbornly elevated, the Federal Reserve suggested that more hikes could be necessary, potentially creating some uncertainty with consumers. Looking ahead, and with the typically slower summer months on the horizon, it will likely be some time before King County’s housing market finds its footing.
After an atypically sluggish April, King County’s housing market saw an uptick in both sales and listings counts in May. In fact, sales reached their highest level since last August, while inventory finished the month at a level not seen since November. The rub? Both metrics remain well below their typical May levels as the buyers and sellers are participating less amidst the current high interest rate environment. There were 2,352 MLS sales in May in King County, which was 19% higher than April and exceeded the typical April-to- May increase of 12%. It was, however, still 32% below last May’s total, 29% below the past-decade May average, and represented the lowest sales count for the month of May since 2020. The month-over-month increases were slightly higher for residential sales, at 20% (to 1,746 sales in May), compared to
condominium sales, at 18% (to 498). Like the overall market, sales of each home type were lower than their respective past-decade averages: 30% below for residential and 28% below for condominiums. On the listings front, the typical expansion from April to May is 11%, whereas last month’s listings count increased by only 3%, to 3,506. A similar trend was observed for both home types: residential homes for sale increased 3% between April and May (compared to a typical 13%), and condominium homes for sale increased by 10% (compared to a typical 5%). Despite the (relatively small) month-over-month increases, total homes for sale were 35% below the past-decade average (of 5,369). Broken down by home type, both residential and condominium home types were also below their respective past-decade averages by 40% and 19% respectively.
Copyright © 2023 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 20, 2023. 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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