Real Estate Market Update from December 2015
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.
Director of Real Estate Valuation
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