June 2023 Real Estate Market Update

JUNE 2023

REAL ESTATE MARKET UPDATE

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May 2023 was a Seller's Market!

The number of for sale listings was down 1.4% from one year earlier and up 11.6% from the previous month. The number of sold listings decreased 30.4% year over year and increased 20.1% month over month. The number of under contract listings was up 19.8% compared to previous month and down 20.5% compared to previous year. The Months of Inventory based on Closed Sales was 1.4, up 41.1% from the previous year.

The Average Sold Price per Square Footage was up 1.3% compared to previous month and down 7.5% compared to last year. The Median Sold Price increased by 2.4% from last month. The Average Sold Price also increased by 1.5% from last month. Based on the 6 month trend, the Average Sold Price trend was "Appreciating" and the Median Sold Price trend was "Appreciating".

The Average Days on Market showed a neutral trend, an increase of 181.1% compared to previous year. The ratio of Sold Price vs. Original List Price was 99%, a decrease of 5.7% compared to previous year.

Northwest MLS brokers report improving inventory and year-to-date gains in sales, prices...

In Washington state, home buyers experienced the largest number of available listings last month since December. Both pending and closed sales reached their highest levels in months. Although brokers at Northwest Multiple Listing Service (NWMLS) welcomed the increased activity, they noted that rising interest rates are dampening overall market engagement.

The statistics from Northwest MLS for May reveal that the median price for the entire area stands at $615,000, showing a 6.8% decrease from the figure recorded a year ago, which was $660,000. However, there has been a significant 10.4% increase since January, when the median sales price was $557,250. These figures encompass sales of both single-family homes and condominiums across 26 counties.

According to John Deely, Median prices have continued to decline year-over-year in the overall NWMLS service area. Following a national trend, the local market reached its peak pricing in April/May of 2022, experiencing a steady decline throughout the rest of the year. However, 2023 has shown a gradual and steady growth in median prices. For instance, residential properties in King County have witnessed a year-to-date increase of 16.5% in 2023. Those waiting for prices to decrease will be disappointed based on the current trends.

At the end of May, house-hunters had a selection of 9,079 active listings in the MLS database, marking the highest level since December. This represents a 3.2% increase compared to the previous year. Despite the rise, inventory remains scarce, with only 1.44 months of supply available.

The situation is even more limited in the four-county Puget Sound region, with Snohomish County reporting approximately 3.5 weeks of supply (equivalent to 0.88 months of inventory). Pierce County fares slightly better with 1.09 months, followed by King County with 1.26 months, and Kitsap County with 1.3 months. Industry experts consider a balanced market to have four-to-six months of supply.