While July’s closings typically are a letdown from the peak-of-the-market June closings (of homes that went pending in April and May), this July took a different twist. With the inventory of homes for sale still incredibly low—27% (Eastside) to 47% (Mercer Island) lower than last July, and pending sales up—13 (Seattle) to 77% (Mercer Island) higher than last July, prices have nowhere to go but up.
And up the have! While closed sale prices nearly always come down in July of every year as the market slows from its peak, July prices fell less than 1% in Seattle and King County and actually rose on the Eastside and Mercer Island. Year-over-year median sale prices are up solidly across the board.
The most remarkable numbers (you can take that as a good thing or bad one depending on which side of the fence you are on) come from Mercer Island with the number of homes for sale a mere 47 compared to 98 this time last year and the number of pending sales charting in at 46 compared to 26 in July 2014.
A noticeable number of less attractive properties (long-term rentals and homes with deferred maintenance) have begun to enter the market to take advantage of rising prices. This writer believes that may result in an increase in the available homes for sale as these properties languish on the market, unable to secure the premium prices of turn-key homes. This will likely result in an even further dissection of the inventory of homes for sale between the haves (turn-key homes) and have-nots (tired homes).
We expect a very strong 90-day outlook for the real estate market in the greater Seattle-Eastside region with some lessening of multiple offers and more opportunity for first time buyers and homeowners with contingent homes to sell to sell to enter the market.
Click on each report below to view detailed data: