Summer 2015 Seattle Housing Market Update

The Seattle and Eastside real estate market is experiencing a significant shortage of housing inventory, and this summer of 2015 we’re seeing a slight change in the typical seasonal trend.  Normally by July we find more homes on the market and a drop-off in the number of homes going pending, making conditions easier for buyers. This year there is less inventory than in 2014 and proportionately far more pending sales.

King County Housing Supply and Activity – May 2013 to May 2015

The average price per square foot of closed sales increased 8.0% in the quarter ending May 2015 compared to the same quarter in 2014.

King County Price per Square Foot of Closed Home Sales – May 2013 to May 2015

Multiple offers were clearly the norm in April and May 2015, when homes sold for an average of 101% of list price. We usually see CDOM (cumulative days on market) drop sharply throughout the spring, and that trend was especially strong this year.

King County Home Sales 2015 – Days on Market and Sale Price vs. List Price – May 2013 to May 2015

Median home sale prices shot up in April and May (by 9.6% year-to-year in May) in response to low inventory and unexpectedly low interest rates.

King County Median Home Sale Price – May 2013 to May 2015

“Months of Inventory” is at 1.1 months, meaning that if no new properties were listed and homes continued to go pending at the current rate, we would be completely out of housing inventory in 1.1 months.  Anything under 3 months is considered a Seller’s Market.

King County Months of Housing Inventory Based on Pending Sales – May 2013 to May 2015