RE/MAX National Housing Report for April 2023

April Sales Decline of 7.6%
In Contrast with Seasonal Ramp-Up

The seasonal ramp-up to peak summer homebuying did not occur in April as closings dropped 7.6% from March across the report’s 49 metro areas. That came as the Median Sales Price rose 2.3% to $409,000 month-over-month and inventory inched up 1.8% over the prior month.

The number of home sales typically increases every month from February to June. But April posted a decline despite a month-over-month increase in new listings of 5.6%. Year-over-year, April sales were down 29.5% while new listings were 22.1% lower.

Other notable metrics:

• The median sales price has increased 6.2% since January after dropping 9.6% the previous seven months.

• Months’ Supply of Inventory in April was 1.3, unchanged from March but above the 1.0 a year ago.

• April’s average close-to-list price ratio was 99%, meaning that on average, homes sold for 1% less than the asking price. A year ago, it was 103%.

• Homes sold in April were on the market for an average of 33 days – six days less than March but 10 days longer than a year ago.

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Washington State NWMLS Market Update for April 2023

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.

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%.

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Source: NWMLS 5/4/2023

RE/MAX National Housing Report for March 2023

The Expected Spring Surge in Home Sales Arrives

March home sales jumped 37.7% over February, signaling the start of the peak spring and summer seasons in the report’s 52 metro areas. While inventory was down 2.8% from February’s total, March inventory was 56.4% higher year over year – due in part to the combination of pending sales and closings being down, leaving homes on the market longer than they were a year ago. The median sales price of $396,000 in March was down 2.0% year over year.

Other notable metrics:

• While down year over year, the median sales price ticked up 3.4% from February’s $383,500, which is in line with last year when home prices rose 4.7% (from $387,000 to $405,000) from February to March.

• Months’ Supply of Inventory in March was 1.4, down from 1.7 months in February but well above the 0.8 of last March.

• March’s average close-to-list price ratio was 99%, meaning that on average, homes sold for 1% less than the asking price. A year ago, it was 102%.

• Homes sold in March were on the market for an average of 40 days – six days less than February but two weeks longer than a year ago.

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Washington State NWMLS Market Update for March 2023

Brokers added 7,904 new listings during March across the 26 counties in the Northwest MLS report. That total is down nearly 30% from a year ago, but up more than 51% from February, when brokers added 5,231 new listings of single family homes and condominiums.

At the end of March, there were 8,007 active listings in the MLS database, up more than 73% from a year ago and up about 10.7% from February’s selection. Even with those gains, the supply, measured by months of inventory, was 1.38 months (less than six weeks), well below the four-to-six month level that industry experts say indicates a balanced market.

Pending sales jumped more than 14.5% from February, rising from 6,230 mutually accepted offers to last month’s systemwide total of 7,136. Compared to a year ago, pending sales are down 29%, with higher interest rates believed to be a factor in the slower pace.

Prices overall were down about 7.5% from a year ago, dropping from $638,000 to $590,000, with considerable variation across the 26 counties in the NWMLS report.

Brokers reported 5,817 closed sales last month, a drop of about 27% from the year ago total (7,989). Compared to February, closed sales jumped more than 36.6%.

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Source: NWMLS 4/6/2023

RE/MAX National Housing Report for February 2023

Home Sales Show Strong Increase and
Slight Rise in Median Sales Price Over January

Despite being down 24.4% year over year, February home sales increased 16.8% from January. That was the largest month-over-month increase in 11 months and ended a five-month streak of sales declines that began in September.

The median sales price of $385,000 increased 0.6% over January, ending a seven-month streak of price declines since the peak of $426,000 in June 2022. Although home prices increased slightly month-over-month, February marked the first year-over-year drop in prices since January 2012 – as the median was 1.3% lower than a year ago ($390,000).

Inventory increased year over year for the 10th consecutive month, and the number of homes for sale in the report’s 50 metro areas was 55.0% higher than a year ago.

Other notable metrics:

• Months’ Supply of Inventory in February was 1.7, down from 2.0 months in January but well above last February’s 1.0.
• February’s average close-to-list price ratio was 98%, meaning that on average, homes sold for 2% less than the asking price. In January, the ratio was 97%.
• Homes sold in February were on the market for an average of 45 days – three days less than January but two weeks longer than a year ago.

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Washington State NWMLS Market Update for February 2023

Open house traffic has been brisk around Western Washington, signaling the start of the spring market, suggested brokers at Northwest Multiple Listing Service. They noted softening prices are enticing some would-be buyers, while others remain on the sidelines hoping fluctuating mortgage rates will stabilize or decline.

Newly released statistics from the MLS for February show upticks in new listings, pending sales, closed sales and median prices compared to January, but when compared to the same month a year ago, figures for those metrics declined:

• Brokers added 5,231 new listings of single family homes and condos to inventory last month, about one-third fewer than twelve months ago.
• Pending sales declined 19%, from the year-ago total of 7,697 to 6,230.
• Year-over-year (YOY) closed sales dropped 17.3%, from 5,147 to 4,258 transactions.
• Median prices slipped 1.7% areawide, from $585,000 to $575,000.

“Although the number of homes for sale in the tri-county area of King, Pierce and Snohomish counties is more than double from a year ago, there were still fewer homes available to buy in February than in January,” observed Matthew Gardner, chief economist at Windermere Real Estate. “Furthermore,” he continued, “listings were more than 40% lower than pre-pandemic levels, suggesting that homeowners may be holding off on selling until the market stabilizes.”

“Year over year, home sales prices are down, but that isn’t surprising given that a year ago homebuyers were scrambling to buy in the face of mortgage rates that were about to skyrocket. I expect we will see a similar story for the next few months.” Fluctuating rates likely contributed to recent sales activity, suggested Gardner. “What is interesting is that home prices rose between January and February which tells me that buyers jumped on the opportunity to take advantage of mortgage rates that dipped below 6.1% five times between mid-January end early February.”

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Source: NWMLS 3/6/2023

RE/MAX National Housing Report for January 2023

Home Prices Almost Back Where
They Were a Year Ago as New Listings Surge

January’s Median Sale Price of $385,000 was down 1.0% from December, marking the seventh consecutive month of price declines. Year over year, the January 2023 figure was just 1.3% higher than this same time last year – an indication home prices are moderating.

At the same time, the number of homes for sale was 59.4% higher than a year ago in the report’s 51 metro areas, fed by a month-over-month increase in new listings of 39.8%. This month’s gain in new listings was higher than any month last year, with the biggest month-over-month increase in 2022 occurring in March with a gain of 27.7%.

Even with the surge in new listings, home sales declined 26.7% from December and 35.2% year- over-year.

Reflecting price declines, the average Close-to-List Price Ratio in January was 97%, meaning that homes sold, on average, for 3% less than the asking price. There has been a gradual decline in this metric since May 2022, when sellers were getting 3% over asking price on average. Homes sold in January were on the market 48 days – one day longer than in December and 12 days longer than one year ago.

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Washington State NWMLS Market Update for January 2023

Northwest MLS brokers are encouraged by declining mortgage rates, with some saying pent-up demand is triggering multiple offers.

Pending sales around Washington state reached the highest level since October and surged nearly 44% from December. However, last month’s 5,776 mutually accepted offers were down about 9% from a year ago.

Prices on last month’s closed sales edged up slightly, at 0.41%, compared with twelve months ago.

The selection of properties, based on the number of total active listings in the MLS database, improved significantly from a year ago, rising from 3,092 listings to 8,220 at month end.

Brokers added 4,925 new listings to the MLS database in January, about 1,000 fewer than the same month a year ago.

The January report from Northwest MLS shows Adams, Columbia, Grays Harbor, Okanogan and San Juan counties each had more than six months of inventory. Ten counties had less than three months of supply.

On February 2nd, Freddie Mac (the Federal Home Loan Mortgage Home Loan Mortgage Corporation) reported the U.S. weekly average for a 30-year fixed-rate mortgage was 6.09%, down about a full point from November when it peaked at just over 7%. According to its research, this one percentage point rate reduction can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, the median home price in the U.S.

George Ratiu, manager of economic research at Realtor.com, said the recent decline in rates means for today’s buyer of a median priced home, the down payment amount is lower than it would have been last summer. NAR Chief Economist Lawrence Yun suggested the “recent low point in home sales activity is likely over.” Commenting on pending sales for December, he stated, “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”

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Source: NWMLS 2/6/2023

RE/MAX National Housing Report for December 2022

December Declines Accentuate
Year of Transition Toward Balanced Market

The housing market decelerated throughout 2022 creating more opportunities for homebuyers, in stark reversal of the frenzied seller’s market of the previous year. The year’s most telling stats were punctuated in December: Home sales were down 38% from a year ago while the number of homes for sale was up 69% in the report’s 53 metro areas.

Sales in every month of 2022 fell short of the previous year, with the percentage of decline starting out in single digits during the first quarter before topping 30% in the fourth quarter. The Median Sales Price of $385,000 was 1.3% higher year over year in December, compared to 13.9% higher year over year last January.

As in October and November, the average Close-to-List Price Ratio in December was 98%, meaning that homes sold, on average, for 2% less than the asking price. The ratio peaked at 103% in April and May compared to 100% in December 2021.

December inventory was down 12.2% from November but grew month-to-month in six of the last nine months.

Other notable metrics include:

• New listings recorded 2022’s largest month-to-month decline of 25.2% and finished 15.1% lower than a year ago.
• Homes sold in December were on the market for an average of 47 days. That was 10 more days than one year ago.
• December’s 2.5 months supply of inventory was unchanged from November but more than double the 1.2 of one year ago.

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Washington State NWMLS Market Update for December 2022

The MLS report for December shows continued growth in the number of active listings compared to the same month a year ago, but sharp drops in the number of pending and closed sales. Last month’s prices for single family homes and condominiums that sold across the 26 counties in the report dropped 0.51% from twelve months ago, marking the first year-over-year price decline since March 2012.

Year-over-year prices for last month’s sales of single family homes and condos (combined) declined in 17 counties and rose in nine counties. The median sales price was $570,000, down $2,900 (-0.51%) from the year-ago figure of $572,900. Last year’s median price overall peaked in May 2022, at $660,000.

The median price for single family homes (excluding condos) that sold last month was $587,500, down 0.42% from a year ago when it was $590,000. Condo prices edged up last month compared to the same month a year ago, increasing from $435,000 to $440,000 for a gain of 1.15%.

Brokers added 2,980 new listings to inventory last month. That total was 1,637 fewer than the number added during December 2021 (4,617).

Sellers accepted 4,017 offers from buyers, down about 31% from the year-ago volume of pending sales (5,850).

At month-end, buyers could choose from 9,475 active listings, nearly three times as many as a year ago when 3,240 homes and condos were offered for sale area-wide.

The Northwest MLS report shows about 2.1 months of inventory at the end of December, marking the fourth consecutive month with at least eight weeks of supply. Six counties, including King, Kitsap, and Snohomish, still have less than two months of supply.

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Source: NWMLS 1/6/2023