Weather and Inventory Do Not Deter Seattle-Area Buyers

Historically soggy weather and the onset of holidays did not deter thousands of buyers and sellers during November 2021, based on the latest report from Northwest Multiple Listing Service. Numbers for new listings, pending sales, and closed sales were comparable to year-ago totals, while prices rose a little more than 15%.

More buyers remained in the market while the listing inventory was depleted to historical lows.

Area-wide, there were 4,621 active listings of single family homes and condominiums at month end, down nearly 29% from a year ago when there were 6,505 listings. The selection at month end amounted to about two weeks of supply (0.51 months). Five counties had even less supply: Snohomish (0.24 months), Thurston (0.35) King (0.38 months), Clark (0.39), and Pierce (0.44 months).

In King County, prices have come down slightly from the peak in July 2021. The median price in King County hit a high in July at $789,000; last month that number was $740,000. That said, the inventory problem is not improving. Active listings in King County are down 60% from a year ago. Comparing the county inventory numbers to historical numbers paints an even more shocking number. In 2010 there were 11,867 active listings, while last month King County had only 1,149 active listings — a 90% decrease.

Looking at other areas, James Young, director of the Washington Center for Real Estate Research at the University of Washington, believes "the normal seasonal effects have taken hold," but pointed to Skagit and Whatcom counties, and other areas along the I-5 corridor as areas where the "main price action" is still occurring.

"The return to these suburban areas seems to continue unabated as first-time buyers seek value and those seeking a more relaxed lifestyle are taking advantage of low interest rates," said Young. He singled out Skagit and Whatcom counties for their large price increases, at 21.2% and 26.5%, respectively. "This may be in part due to the border reopening and possible pent-up demand from Canadian buyers."

Many economists believe interest rates will remain below 4% through 2022. This likely will keep the housing market very active and continued inventory problems will likely be the story in the coming year.