People who wanted to buy a house but couldn’t find the right one due to the housing shortage are seeing a light at the end of the summer tunnel. House sellers in the Puget Sound were less likely to see multiple offers coming in for their house in June, as more houses on the market provided a broader selection for home buyers.
This year continues to be positive for sellers in the King County and Snohomish County, as 80 percent of all newly listed houses are being sold within 30 days. It’s worth noting that a balanced real estate market usually shows 30 percent selling in the first 30 days.
According to a report on northwestmls.com, the four-county Puget Sound region is maintaining its strength. Brokers reported 8,869 pending sales for the month of June. The last time the area saw a number this high was in June of 2005. There were 11,995 mutually accepted offers in June. This is up 4.73 percent from June of 2015.
House Prices Continue to Rise with Demand
In King County, pending sales for June but so did house prices. Of the 9,805 sales that closed in the month of June, the median price for condominiums and single-family houses was $350,000. This time last year, the median price was $321,500. This shows an increase of 8.9 percent. This seems to be a trend across the entire state of Washington, making it the leader in rising housing prices when compared to other states.
During June, MLS members added approximately 12,759 new listings to the inventory. This was an increase of 10.2 percent over one year ago. This market area hasn’t seen a month show that much of an increase since March of 2010.
Those seeking condominium living are in for a challenge. The median price rose a staggering 22 percent compared to June of last year, ringing in at $350,000. This time last year, a buyer could have snagged one for around $287,000. The picture is not much brighter for those seeking a single-family home. Prices increased by 14.7 percent, from $500,000 to $573,522. This increase makes it even more important for a buyer to know exactly how much they can afford to spend on a house.
Britain’s Impact on the Real Estate Market
Though not normally a consideration, Britain’s political decisions may impact the real estate market in the United States. Those who watch the real estate market closely predict that Britain’s vote to exit the European Union could cause an increase in home sales. We’ve already seen a wave of influence in lower interest rates for June. Lower interest rates like this could mean that foreign buyers flood the market in the near future.
This increase in foreign interest could be bad news for buyers in the King County area, which is already struggling from a housing shortage and rising house prices. Interest rates may remain low and bring in more buyers, taking bidding wars over the current real estate inventory to a new high. The market is competitive without the added interest from foreign investors, so things might get hotter as the summer months continue.
This is good news for sellers. This is prime time for sellers who’ve been undecided on selling to place their house on the market. Brokers are likely to continue adding increased numbers to current listings as the world keeps their eye on what’s happening in Britain. Sellers are cautioned against setting the price on their house too high. The overpriced house could sit without an offer, causing the seller to lower the price, costing them time and money. Price homes competitively from the start to get the best friction from the current real estate market. Experts show an optimistic view when it comes to houses that haven’t gotten much attention in the past. Those sellers could see a renewed interest this summer.
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