With the first full month of post-COVID-19 data in hand, it’s clear the Puget Sound housing market has been hit but not knocked out. the normally active spring market is significantly slower than normal due to COVID-19, but it has not come to a halt. It is responding to the current circumstances exactly as expected. As we look at the numbers for April, typically one of the most active months in regard to new listings, the impact of COVID-19 on the real estate market is now clear, although it was thought that it could have been worse. 

The volume of new listings added during April was off 34.7% compared to the same month a year ago. Brokers added 7,641 new listings last month, down from both March when 10,291 new listings were added, and April 2019 when brokers added 11,697 new listings. Despite the slower activity, the months of supply improved only slightly, rising from the March figure of 1.4 months to 1.75 months of inventory at the end of April. The market is “virtually sold out everywhere locally in the more affordable and mid-price ranges.” Buyer demands are coming forward. With historically low interest rates, the local market needs additional listings to meet pent-up demand from the backlog of buyers. We continue to see a shortage of inventory, along with multiple offers on newly listed homes, and we still have a backlog of buyers who line up (virtually) to view new listings. With exceptionally low interest rates, there is no change in sight only a slight increase in average market time for some listings, along with instances of multiple offers.

The Greater Seattle real estate market “continued to show its fundamental strength in April.” In comparing April to March in the tri-county area (King, Pierce and Snohomish counties), the total number of active listings rose (up 14,8%), but new listings dropped (down 25.5%), which suggests sellers may be waiting until the shelter-in-place order is over. In the same area, home prices were essentially flat which tells that sellers are having realistic expectations about value and buyers, hoping for deep discounts, are not finding them. We have had quite a few buyers who have come into the market thinking this is a good time to make lower offers on houses, but that is just not the case in Kitsap County. Northwest MLS figures show the median price for homes and condos that sold last month in Kitsap County rose more than 13% from a year ago, from $349,500 to $395,178. More than half the sales in Kitsap County were over the asking price. “The market continues to be very competitive.”

Eight other counties, like Kitsap, reported double-digit jumps in median sales prices compared to a year ago, while four counties had declines. In King County, prices rose 4% from a year ago, from $625,000 to $650,000. Snohomish County prices were up nearly 6% and Pierce County joined Kitsap with a double-digit gain; prices there increased from $355,000 to $397,750 for a 12% gain. System-wide, prices were up about 6.4%, rising from the year-ago figure of $424,950 to last month’s figure of $452,030. Year-to-date prices are up nearly 9.3% compared to twelve months ago. 

With peripheral areas still showing price increases higher than the Seattle area core, April’s figures highlight the trend of migration to outer suburban areas, along freeway corridors. A continued preference for lower density areas given the likely persistence of distancing measures in the future. The virus has refocused many potential buyers, especially for those owning highdensity properties in Seattle and elsewhere, on more space and less density. It makes social distancing easier! The trend of households moving to outer counties will likely accelerate in the coming weeks. Older households in Seattle and other urban centers will be attracted to lower density areas because it is easier to maintain social distance while possibly gaining more space at a lower price point. As long as older householders in urban areas are able to sell, other counties will continue to see increased prices. The biggest factors in mortgage markets are first-time buyers, who may not qualify under new criteria, and jumbo markets. 

Noticeable changes occurred in mid-April. New lenders saw opportunities in the marketplace and filled the space left by the national lenders. Sellers and buyers became more active. It is amazing how resilient the real estate market has become in the face of the new normal. Buyers are relying more and more on technology and tools to allow for virtual open houses and viewings. Social distancing, face masks, showings by appointment only and only two people in a home at a time with one of them being the broker are the new norm. Imagine homeowners wanting to change their living conditions to accommodate for more room or more outdoor space. This could well cause a shift in what buyers are looking for in the future. Buyers in Kitsap County are very active on the internet and are checking out properties the minute they go on the market. With corresponding surges in activity at title companies and by lenders. Virtual tours are getting a lot of attention. Homebuilders “are ready to go full steam ahead. Expect activity will continue to increase throughout May and June, which “speaks to a market that is slowly adjusting to new ways of operating.” “Optimism is rising,” We have seen a drastic increase in views of virtual tours. Consumers are gaining confidence around safety measures for touring homes and as brokers become more adept at hosting live stream open houses. Buyers are utilizing virtual technology, electronic signatures, and remote online notary processes for closing. All in all, we’re getting through this together. We are truly fortunate to live in a region that has navigated this crisis as adeptly as possible.

If you have any questions or comments you would like answered in next month's newsletter, email me at [email protected] and they will be included in the market update. OR if you would like more information on our unique systems and programs, call us at 206-391-7766 Or visit our website www.GeorgeMoorhead.com 

If you have any questions or comments you would like answered in next month's newsletter, email me at [email protected] and they will be included in the market update. 

OR if you would like more information on our unique systems and programs, call us at 206-391-7766 or visit our website www.GeorgeMoorhead.com