May 2023 Real Estate Market Update

MAY 2023

REAL ESTATE MARKET UPDATE

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April 2023 was a Seller's Market!

The number of for sale listings was up 24.4% from one year earlier and up 2.5% from the previous month. The number of sold listings decreased 38.4% year over year and decreased 11% month over month. The number of under contract listings was up 7.9% compared to previous month and down 24.4% compared to previous year. The Months of Inventory based on Closed Sales was 1.5, up 107.3% from the previous year.

The Average Sold Price per Square Footage was up 3.3% compared to previous month and down 10.2% compared to last year. The Median Sold Price increased by 2.5% from last month. The Average Sold Price also increased by 2.6% from last month. Based on the 6 month trend, the Average Sold Price trend was "Appreciating" and the Median Sold Price trend was "Appreciating".

The Average Days on Market showed a neutral trend, an increase of 183.3% compared to previous year. The ratio of Sold Price vs. Original List Price was 99%, a decrease of 8.3% compared to previous year.

We're Moving in a Positive Direction...

Market dynamics are influencing adjustments in housing prices, suggested an officer at Northwest Multiple Listing Service, but with “very constricted” inventory, he said homes that are well priced continue to receive multiple offers.

Commenting on the latest statistics from Northwest MLS, Frank Leach, said despite limited inventory (about 1.5 months of supply overall), it is an “excellent market.” As summer approaches, Leach expects to see increased activity with inventory “being snapped up as it comes onto the market and savvy buyers taking advantage of softening interest rates.”

The latest report from NWMLS, summarizing April activity, shows year-over-year drops in new listings, pending sales and closed sales, an increase in total active listings, and lower prices.Brokers reported 7,137 pending sales of single-family homes and condos during April, down nearly 27% from a year ago, but notching the highest volume so far this year, edging out March by one transaction. Pending sales are up more than 23% from January’s total (5,776).

Closed sales slipped 36%, from the year-ago total of 8,344 to last month’s total of 5,338. Compared to January’s figure of 3,264 sales, April’s completed transactions surged 63.5%.

The median price for last month’s sales of single-family homes and condos across the 26 counties in the report was $603,250, down about 8.6% when compared to twelve months ago. When compared to January’s median price of $557,250, prices are up nearly 8.3%. April marked the fourth consecutive month of rising prices.

In King County, which accounted for 35% of last month’s closed sales, the median price of $790,244 fell 10.2% from the year earlier price of $880,000. A comparison with January shows prices are up 9.3%.Northwest MLS brokers added 7,303 new listings to the database during April. That total was down from both March, when they added 7,904 new listings, and the same month a year, when they added 11,681 new listings. On a percentage basis, the year-over-year drop was 37.5%.

With slower sales, total supply improved compared to a year ago.

At the end of April, there were 8,114 active listings in the NWMLS database, an increase of 1,600 from the year-ago supply for a gain of nearly 24.6%.