Eastside Quarterly Market Trends – Q1 2020

As we head into the second quarter amid the COVID-19 outbreak, new real estate listings and transactions have slowed after a strong first quarter. What would typically be the seasonally brisk Spring Market has tempered in respect of the Stay Home, Stay Healthy order.

 

During this time, some sellers are still coming to market and there are motivated buyers carefully viewing and purchasing homes. I’m happy to report that sellers are maintaining their home sale values through these negotiations. We anticipate pent-up demand for both sellers and buyers once the orders are lifted, and see the summer season becoming the new spring for real estate and a more normal second half of 2020, bearing control of the virus. We also look forward to many jobs returning once the orders are lifted.  We are fortunate to be in the Greater Seattle Area, as many industries such as tech and biotech will hold small businesses on their shoulders once their workers return to the brick and mortar locations.

 

Prior to the outbreak, we anticipated complete year-over-year price growth to be 4-6%. That has been adjusted to 1-3% due to this health crisis. Another important element to consider is equity levels: 43% of homeowners in King County have more than 50% equity in their home.

 

These are unprecedented times and there are many questions and concerns. It is my goal to help keep my clients informed and empower strong decisions, now more than ever. Please reach out if you’d like to discuss your real estate goals and how they relate to your lifestyle and bottom line. Be well!


Posted on April 22, 2020 at 10:05 pm
Krista Belova | Posted in Eastside, Quarterly Market Trends |

Eastside Quarterly Market Trends – Q4 2019

In the fourth quarter of 2019, there were 17% fewer new listings that came to the market compared to the fourth quarter of 2018, but pending sales outpaced inventory levels with a 17% increase in sales activity. The trend of pending sales outpacing new listings rang true throughout all of 2019, which illustrates strong buyer demand. This demand is being fueled by the lowest interest rates we have seen since 2016, additional job creation in our area, and the convergence of baby boomers making big lifestyle moves and millennials making their first home purchases. Equity levels are very healthy for many homeowners due to the last 8 years of price growth (despite the 2018-2019 correction), providing the opportunity to make that right-size, move-up, or move-out-of-the-area move. An important factor to note as we head into Q1 of 2020 is the tighter-than-normal inventory levels. This will bode well for sellers, as buyers are anxious to secure a purchase with these historically low interest rates. Low interest rates are a benefit for buyers to have lower debt service, but also affords home sellers a larger audience.

 

This is only a snapshot of the trends on the Eastside; please contact me if you or someone you know would like further explanation of how the latest trends relate to your housing goals.


Posted on January 15, 2020 at 1:33 am
Krista Belova | Posted in Eastside, Quarterly Market Trends |

Eastside Quarterly Market Trends – Q2 2019

Increased pending activity is an indication of strong buyer demand which is very much being driven by historically low interest rates, a thriving job market, and an overall strong local economy. In fact, interest rates are an entire point lower than they were a year ago! This affords buyers a price point that is 10% higher over last year while maintaining the same monthly payment. A year ago, the monthly payment for a home at $900,000 is the same for a home at $990,000 today. Today’s rates coupled with tempered price appreciation provides increased affordability for buyers, which in turn is providing a healthy audience for sellers.  After many years of strong price increases, many sellers are moving their equity to the next lifestyle home they desire.

 

This is only a snapshot of the trends on the Eastside; please contact me if you would like further explanation of how the latest trends relate to you.


Posted on October 21, 2019 at 8:54 pm
Krista Belova | Posted in Eastside, Quarterly Market Trends |

Eastside Quarterly Market Trends – Q2 2019

2019 provided a very healthy and more balanced spring market! Median price is up 2% year-over-year at $925,000. Prices have started to find their balance as more inventory has come to market compared to the scarcity of years past. While buyers have had more choices over the last year, it is still a seller’s market with just 2 months of inventory based on pending sales, resulting in an average of 30 days on market and 98% list-to-sale price ratio in June. Low interest rates continue to drive demand, however sellers who overprice or don’t address condition issues will linger on the market, illustrated by the 27% increase in carryover inventory.

 

Our real estate market continues to be driven by low interest rates, positive job creation, and upbeat consumer sentiment. Currently, interest rates sit around 4% which is still an historical low, affording buyers the ability to make moves and reduce their debt service. Price appreciation has started to temper to more normal rates, compared to the double-digit appreciation we experienced over the last 3 years due to more sellers coming to market. This has created more balance and greater opportunity for buyers. The generational shift we are experiencing as Baby Boomers move towards retirement and Millennials enter into their prime earning years is an exciting exchange happening in the market place right now.

 

This is only a snapshot of the trends on the Eastside; please contact me if you would like further explanation of how the latest trends relate to you.


Posted on July 23, 2019 at 6:58 am
Krista Belova | Posted in Eastside, Quarterly Market Trends |

Eastside Quarterly Market Trends – Q1 2019

Months of inventory has reduced as we finished out the first quarter of 2019. Months of inventory is the amount of months it would take to sell out of homes if no new listings came to market. This illustrates the balance between supply and demand. We peaked at 3.6 months in December of 2018 and found ourselves at 1.5 months this March.

 

The first quarter of 2019 saw 2,304 new listings and 1,703 pending sales – demand tracked well with supply! It remains a seller’s market (0-3 months of inventory), but not as constricted of a market as last year, which saw an average of 0.9 months in the first quarter compared to 2 months this year. As we head into spring, we should see continued growth in new listings and demand will be strong, fueled by low interest rates and positive jobs reports.

 

The second half of 2018 had a large influx of homes that came to market, and an interest rate jump which created a gap between supply and demand. Buyers enjoyed some negotiations and credits in the fall and winter due to more selection, but as interest rates reduced in the first quarter, we saw demand increase. This is helping to absorb inventory and reduce the average days on market it takes to sell a home. Median price is up 6% complete year-over-year, which is still higher than the 4% norm, but much less than the unsustainable 14% gains from 2017 to 2018. This balancing out in the market has been a positive phenomenon as affordability has been a challenge for many. Both sellers and buyers are finding great opportunities in the current market.

 

This is only a snapshot of the trends on the Eastside; please contact me if you would like further explanation of how the latest trends relate to you.


Posted on April 16, 2019 at 5:16 am
Krista Belova | Posted in Eastside, Quarterly Market Trends |