Real Estate Market Update from December 2015

Veristone Logo

There are some interesting statistics about the growth in our core market that we have found on the NWMLS through December 2015.  Our market has consistently appreciated 8-9% Year To Date in King, Pierce and Snohomish Counties:

 

MEDIAN RESIDENTIAL HOME PRICES (NO CONDO) CLOSED SALES

 

COUNTY               2015                       2014                       Growth

KING                     $480,000              $440,000              +9.1%

SNOHO                 $355,000              $326,360              +8.8%

PIERCE                  $249,950              $230,000              +8.7%

 

Even when you factor in Condos (which bring the median price and appreciation down) – the growth rates are very similar:

 

MEDIAN RESIDENTIAL + CONDO INCLUDED HOME PRICES — CLOSED SALES

 

COUNTY              2015                       2014                       Growth

KING                     $432,000              $399,790              +8.0%

SNOHO                 $335,000              $308,000              +8.8%

PIERCE                  $245,000              $225,500              +8.6%

 

The bigger story in our market is a lack of inventory.  Some experts have surmised that people are hesitant to bring homes to market, but the data says that new listings have stayed consistent.  For instance, in King County sellers brought 39,835 Active listings to market in 2014.  That number was very similar in 2015: 39,337 New Active Listings.  Sellers are bringing the same number of homes to market, but the awaiting market is absorbing the homes at a greater rate.

 

CLOSED SALES (RESIDENTIAL AND CONDO) — UNITS

 

COUNTY              2015                       2014                       Growth in Closed Units

KING                     34,266                   30,931                   +10.8%

SNOHO                 13,945                   11,779                   +18.4%

PIERCE                  14,082                   12,065                   +16.7%

 

As you can see, all three markets closed much more inventory, with Snohomish and Pierce Counties growing in the high teens.  Days on Market has dropped in all three counties.

 

AVERAGE DAYS ON MARKET (RESIDENTIAL AND CONDO)

 

COUNTY              2015                       2014                       Change                 Reduction in Days

KING                     38                           49                           -22%                      11

SNOHO                 47                           64                           -27%                      17

PIERCE                  57                           79                           -28%                      22

 

December numbers need to be taken with a grain of salt — it’s a low inventory month with sellers waiting for the spring — but it is still notable that Active Inventory in King County dropped 39% December over December (3,600 Total Active Units in DEC 2014 to only 2,196 Total Active Units in DEC 2015).  That means there was less than one-month’s inventory available on the market in December 2015!  The data would show that this is a challenging market for buyers, not a balanced market which would probably have closer to 4-6 months inventory.  Demand is outstripping Supply right now.

 

Davis Hsu

Director of Real Estate Valuation

 

 


Davis Hsu

Start Your Loan Request Today

Find out how much you can borrow, your interest rate, and your monthly payment.

Contact Us

  • This field is for validation purposes and should be left unchanged.