Here are the NWMLS Market Stats for August 2020. Quick takeaways:
- The median sold price of homes is 14% higher compared to August 2019
- Total volume of sold homes increased 19.7% from 2019 to $5.98 Billion
- New listings increased 13.9% while pending sales increased 24.7% compared to August 2019
- The difference between new listings and pending sales has created a net deficit in inventory; This has led to available inventory decreasing to its lowest level since 2016 to 0.97 months
These numbers are a composite for all of the Northwest Multiple Listing Service which comprises 23 counties in Washington. To see the full report for the NWMLS, click here.
Additional info to what’s published: In the 4-county Puget Sound region, prices have jumped 17% year over year, from $500,000 to $585,000. Second, the “sale fail rate” has remained constant for all of 2020. You’d think COVID would have impacted this number, but it hasn’t! Lastly, buyers are going to extreme measures in order to successfully buy, including waiving inspections, waiving financing, and bidding up homes higher than their appraised value and then paying the difference. It’s crazy! In normal markets these measures are ridiculous and illogical, however currently they are necessary to successfully purchase.
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In his updated 2020 forecast, Matthew Gardner discusses how COVID-19 has changed the landscape in the economy and housing market. Click here to learn more about what’s next in the King/Pierce/Snohomish county area during the 2nd half of 2020.
I’ve been studying sales statistics and doing some thinking. Yesterday I listened to Matthew Gardner who discussed home ownership rates since the late 19th century. At the end of his presentation, he shows a comparison of home ownership among different racial classes. As you might guess, white/Caucasian home ownership is significantly higher than all other racial classes. The numbers he shows are national numbers btw.
Coupled with this, in our office meeting on Tuesday we were discussing how racially segregated the Seattle area is (still). Up until the late 1960’s, Shoreline (just one example & area–there are many others as well) was a “white’s only” area. However, that change (on paper) in April 1968 with the Federal Fair Housing Act that prohibited discrimination based on race (among other things). After April 1968, Edwin Pratt bought a home in Shoreline and was the first Black person to own property there. On January 26, 1969 was shot on his front doorstep. Apparently, white people didn’t want him there. If you want to read about him, click here.
What’s shocking is that today (yes today!) some communities still have racist language in their covenants. STILL. It’s disgusting and it’s illegal. How would you feel if you were purchasing a property and upon reviewing title you discovered language that prohibits someone like you from living there? It’s not exactly rolling out the welcome mat.
I’m proud to say that WRE is taking a stand on this sort of language and is actively working to remove it when it’s encountered in transactions. There’s a process for this, and I know of at least two agents in my office who have gotten racist & discriminatory language removed from CC&Rs. I’m glad I am partnered with a company that is taking active steps to rectify centuries’ worth of wrongs.
Last thing…I’m posting the numbers for sales stats in Snohomish County. As you can see, pending sales are outstripping available supply. What this means is that there are multiple offer scenarios happening all.the.time. It kind of sickens me, actually, because what I see happening is buyers with the most capital and resources being rewarded with contracts. Yes, we live in a capitalistic society, I get it, and this is how it works. However, the system favors those who have had the most privilege over time. Whites play with a stacked deck because white people have owned the most capital in the past. They have a definite advantage now when purchasing, especially in this competitive environment. Some people come in with all cash and can afford to waive inspection, title, financing, etc…because they can AFFORD to. They usually win the bidding war because the Seller wants the most $$ and the most secure transaction. It makes sense, and you risk violating Fair Housing Law if you don’t pick based on the strength of the offer. What I’m seeing, though, is that those with less capital and fewer resources get beaten out with greater frequency in these multiple offer scenarios, unless they are willing to take an enormous amount of risk. Because whites have historically had access to more capital, my hunch is they are likely to be more successful in a bidding war. I’m hopeful that over time home ownership rates can change and it will be a more level playing field.
I invite you to click the link below to listen to Matthew, and consider the stats on home ownership between different racial groups. Then look at the stats for Snohomish County, and think about who you think would win when there are so many offers you can count them on both hands.
I welcome dialogue about this, in the form of a phone call, Zoom call, or “socially distanced” personal meeting. I don’t really want to discuss this over text or comments, because it’s too important of a topic to discuss in these manners and people have a tendency to be more nasty when it’s an impersonal format. Thank you!!
Mondays with Matthew, discussing home ownership rates: Click here.
Snohomish County Sales Stats July 2020:
As you can see from the following stats in the link below, activity in July has been brisk! It is definitely a Seller’s market! Despite being in a pandemic, sales have been brisk. Pending Sales have been increasing consistently over the past two months, and inventory has shrunk–it is over 40% lower than at the same time last year. Active listings are down almost 40%. The number of pending sales is up almost 14% over last year. This is a lot of selling, especially now! My take on this is that the current numbers reflect of pent-up demand, and this summer is essentially the spring market due to COVID-19.
Please reach out if you’d like more detailed information or even if you just want to chat…I’m here for you!! #yourhomesherpa
Click here for the July 2020 market snapshot:
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This week learn about results from the National Housing Survey results published by Fannie Mae. Chief Economist Matthew Gardner dives into the #s that measure the public’s current sentiments re: buying and selling.
Do you (or anyone you know) want or need to buy or sell a home now? If you are worried about staying healthy during COVID-19, call me! Utilizing technology & safe showing practices, I help you minimize risk and achieve the results you want. Trust a reliable guide! #yourhomesherpa
My Seller is in a high-risk group. She and her family had concerns about her staying safe during COVID-19, but she needed to sell quickly and wanted top dollar for her home. I helped her achieve her goals:
- Her home sold in 4 days for $38k over asking price (9.2% above list price)
- 15 offers were presented, so my Seller got amazing terms. Great terms increase the chances of the sale closing, and make for a lower-risk transaction for the Seller.
- The Seller remained healthy! She is thrilled, and so is her family.
- 298 people toured the inside of her home without ever setting foot in it.
Do you (or anyone you know) want or need to buy or sell a home? Are you are worried about staying healthy during COVID-19? If so, call me! Utilizing technology & Safe Showing practices, I help you minimize risk and achieve the results you want. Trust a reliable guide! #yourhomesherpa
Upgrade your life by living with less…by reducing stress, you can improve both your mental and physical health. Find ideas on how to get started living a more purposeful and focused life here.
Check out June 2020 real estate statistics for the 23 counties that comprise the Northwest Multiple Listing Service (NWMLS). Quick takeaways:
- COVID-19 + Low inventory are the driving factors in the current real estate market. Homes are selling 33% faster than they were a year ago.
- Compared to 2019, inventory of available homes was down 42% in June, while the # of pending sales increased 3%.
- Homes are selling FAST. These slides don’t show it, but days on market (how long a home takes to sell) is decreasing. You can see this on the “Local Real Estate Statistics & Trends” tab at the top of my home page.
- Long story short: After a sluggish April and May, summer is emerging as the new spring in the housing market, at least for this year.
Statistically, you know 3-4 people who will be moving this year. Help your friends & family by referring me so I can help them navigate what is likely the biggest financial decision of their life. I’m here to help! #yourhomesherpa
Why is home buying lower among Millennial buyers? Matthew discusses this as well as how a lack of home buying can affect long-term wealth and wealth inequality.
As always, if you know someone who is thinking of buying or selling, please pass on my info…I’d love to help! #yourhomesherpa