It’s time once again for the monthly reporting roundup, where you can read my wry commentary about the news instead of subjecting yourself to boring rehashes of the NWMLS press release (or in addition to, if that’s what floats your boat).
To kick things off, here’s an excerpt from the NWMLS press release:
Tight inventory, record-low mortgage rates fueling Western Washington home sales
Low listing inventory and plunging mortgage rates are fueling buyer competition for homes close to job centers, according to brokers who commented on the latest market report from Northwest Multiple Listing Service.
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Instant Market Activity!J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, described activity as a “double quick action market.” He noted local home buyers are back purchasing homes, “igniting strong sales activity up the price points.” This, combined with the low supply, and in some areas, shortages of homes for sale, is creating what Scott said is “instant market activity from a backlog of home buyers” when market-ready homes are listed.
“Double Quick Action Market” sounds like it should be a super hero anime or something. “Instant Market Activity!” would be the team of heros’ catchphrase, shouted out as they fly into the air, fists-forward, slow motion against a background of multicolored rays.
Read on for my take on this month’s local news reports.
Eric Pryne, Seattle Times: House prices stay on rise in King and Snohomish counties
House prices rose in May in King County for the second consecutive month, prompting market-watchers to employ with greater certainty some words you may not have heard in a good long while:
Rebound. Stabilization. A seller’s market.
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The year-over-year increase was the biggest since prices peaked in 2007 — and there have been few months since then with any increase at all.
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Glenn Crellin, associate director for research at the University of Washington’s Runstad Center for Real Estate Studies, said the numbers didn’t surprise him. He’s been popping into open houses during walks around his neighborhood, Queen Anne.Compared to three months ago, “the quality hasn’t changed, but the prices have,” he said. “They’ve gone up. And the houses are selling faster.
Eric also picked up my data about the 5-point drop in the share of bank-owned homes compared to a year ago. The article also touches on the buyer sentiment survey released this week by Redfin (my employer), that shows a shift in market psychology, as more buyers realize that it has become a seller’s market.
Aubrey Cohen, Seattle P-I: Seattle house prices post double-digit increase
Rising sales and low inventory helped push Seattle house prices up by 10.5 percent in May from a year earlier, according to a new report.
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“Things that are in good condition are selling, they’re selling quickly, and they’re selling at good prices, from the seller’s point of view,” said Glenn Crellin, associate director of the Runstad Center for Real Estate Studies at the University of Washington.So the bottom is clearly past, right?
“It’s still going to be pretty neighborhood specific, but we’re clearly past the bottom in some of the more desirable neighborhoods, Seattle and Bellevue, close to employment centers,” Crellin said.
I think this is the first true bottom call I’ve seen from Mr. Crellin. Although he was quite the sales booster back in the bubble days, in recent years I’ve found myself agreeing with nearly everything he has to say about the market, and this call is no exception.
Michelle Dunlop, Everett Herald: Home prices up again in Snohomish County
Home prices in Snohomish County increased again in May — establishing a two-month trend, according to a report released Monday evening.
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The inventory of homes in Snohomish County is lower than that of any of the other 20 counties in the state tracked by the Northwest MLS. The county has a 1.5 month supply of homes on the market, meaning it would take that long to sell the homes available if no new houses were listed for sale. Analysts say that a 5 to 6 month supply of homes indicates a balanced housing market.
Not a lot of meat in this month’s article from the Herald.
Rolf Boone, Tacoma News Tribune: Local home sales up in May, prices steady
The inventory of homes in Snohomish County is lower than that of any of the other 20 counties in the state tracked by the Northwest MLS. The county has a 1.5 month supply of homes on the market, meaning it would take that long to sell the homes available if no new houses were listed for sale. Analysts say that a 5 to 6 month supply of homes indicates a balanced housing market.
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Allen Realtors of Lakewood President and designated broker Mike Larson also pointed to the county’s falling inventory of homes for sale as another indicator of a more balanced housing market to stimulate sales. Inventory levels fell more than 30 percent to 3,758 units from 5,501 units, the combined data show.“The supply and demand is not so extreme,” Larson said about the current state of the housing market. When the supply of homes is higher, such as when its closer to 5,000 units, buyers become choosier and sellers are forced to lower their prices to compete for those buyers, he said.
Hmm, perhaps demand isn’t very extreme right now, but supply is definitely extremely low.
Rolf Boone, The Olympian: Area home sales rise as prices remain flat
Thurston County’s housing market showed improvement for the third consecutive month and the South Sound real estate community is sensing a turnaround.
Home sales rose and median prices largely were flat in May, according to Northwest Multiple Listing Service data released Monday.
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“Residential markets are perking up after nearly five years of decline,” said Ken Anderson, president and owner of Coldwell Banker Evergreen Olympic Realty, in an email. “Prices have stabilized and pent up demand is being unleashed.”
Apparently all the pent-up supply is still leashed.
(Eric Pryne, Seattle Times, 06.04.2012)
(Aubrey Cohen, Seattle P-I, 06.04.2012)
(Michelle Dunlop, Everett Herald, 06.05.2012)
(Rolf Boone, Tacoma News Tribune, 06.04.2012)
(Rolf Boone, The Olympian, 06.05.2012)