Each month we analyze local market data to provide our clients with market analysis your local regions. The month of July brought interesting market changes
The Puget Sound Region is in the middle of a stabilized market that is perplexing experts. The month of July ended with numbers sending mixed messages to buyers and sellers throughout the region. Focusing on King, Pierce, and Snohomish Counties has provided a new and complex dynamic in the overall scheme of Washington Real Estate.
Data from across the Northwest Multiple Listing Service was mixed, with half of the counties reporting more inventory than the year previous, and half of the counties reporting less inventory. The same trend occurred within the tri-county region, King and Snohomish reporting increases in inventory versus the same month last year, and Pierce county showing a decrease in inventory.
Experts also reference the drop in federal interest rates as part of the confusion in market data. In the past, drops in interest rates created a larger outpouring of buyers. However, this might have created a slight bump in the buyer pool, but overall closings and inventory rates actually dropped in King County. Overall numbers displayed a relatively “muted” response to a market change that normally results in a large spike in buyers.
Despite changes and speculation in the future of the market, the current statistics are showing a rare phenomenon working in favor of buyers and sellers. Month to month prices are dropping in King County but increasing in Pierce and Snohomish. The numbers of new listings are dropping, but the number of closing are dropping as well. As the numbers of listings are dropping, so is the buyer pool, keeping the market at a balanced rate. Looking at the overall inventory rates within the tri-county region, all areas have maintained stable and consistent numbers, maintaining a market slightly tipped in favor of sellers, but giving buyers bargaining power.
What this means for investors:
At Heaton Dainard, our numbers are reflecting the market statistics reflected in the MLS. Over the course of July we had seven homes close, at an average of 15 days on market, and 100.2% of list price. This has slowed down compared to June, where we had 16 closings. However, our average days on market has stayed steady at 15 days, and our average sale of list price dropped from 100.5% in June to 100.2% in July. In June we had 6 new listings, and July we had 5, consistent with the trend of slowing numbers of inventory. We did see a slight uptick in pending homes, as two more homes in July went pending compared to the number of homes pending in June.
Looking ahead for our investors, dropping prices and the tail-end of the summer market are providing plenty of opportunities for investors to get a foot in the door on great deals throughout the region. We are also seeing a higher demand in buy and hold opportunities as investors are preparing to play the long game in investment strategies.
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