Catherine Weir
QUARTERLY UPDATE JULY 2021
is this hot market cooling? The S&P CoreLogic Case-Shiller National Home
Price Index released its numbers in May and found that Home prices throughout the entire US were 13.2% higher in March, compared with March 2020. That’s up from the 12% annual gain in February, and it marks the 10th straight month of accelerating home prices. I am often asked about this very fast home price increase and the inevitable, “are we in a bubble and when will it pop?” question. The gain that happened in March is the largest since December 2005 and is one of the largest in the index’s 30-year history. Prices are being pushed higher by incredibly strong competition in the housing market from buyers. The record-low housing supply is a result of bidding wars for the vast majority of listings. The 10-city composite rose 12.8% year over year with Seattle being one of
WHAT ’S INS I DE Eastside Market Updates, pg. 3
the top three cities leading the charge. This is a huge increase in home values. On average in the Seattle region 5% a year is the typical home price increase, right now we are seeing almost 3 years worth of growth in just one year. This leads many people to assume that if they wait, prices will come down or the “bubble” will burst. Many people ask me when I think home prices will go down. Personally, I just do not think they will. I think the growth rate will slow down to the historical average of 5% a year but I do not see a decrease or a bubble bursting like we did in 2008. There are some big differences between now and then. Back in 2008, home price growth was fueled by speculation, subprime mortgages of which a key component is loose loan practices and an oversupply of homes. This market in contrast is driven by mortgage interest rates at historic lows, a low supply of homes
Q 2 2 021
Is This Hot Market Cooling? continued...
King County
“June saw slightly more houses go on the market however all these homes were snapped up and home prices continued to rise”
and increasing demand for homes because of the pandemic. People are not moving or buying homes to speculate. Coldwell Banker Real Estate CEO Ryan Gorman told CNBC that he is seeing- approximately 40% of home buyers selling or buying due to upsizing which is the classic reason people are looking to move. About 30% of home buyers are seeing an increase in value in their homes and are looking to monetize that increased value. Perhaps this means they move forward with retirement plans. There are still about 30% of homebuyers saying, ‘If I’m able to work remotely at least part of the time, maybe all the time, then perhaps I want to live somewhere differently than where I live today, maybe even somewhere a little more affordable’. So while home prices are increasing, affordability is a relative term and we’re seeing some people take advantage of that. Right now due to COVID we are also seeing issues with construction materials, not enough people working in construction jobs and permits for new homes far behind the demand- and this is nationwide. Couple this with stricter lending policies- just ask anyone that has tried to get a mortgage recently and we just have real demand and a lack of supply that is driving up prices. My advice for anyone trying to buy in this super hot market is just buy something you can see yourself in
for the short term. You most likely will not be able to save as much as home prices are appreciating if you wait for something better to come up. Buy what you can afford, live in it for a few years and then take that equity and any savings and go to the house that you really want- put the dream house on hold for now.
Connect With Me! C E
206.313.9714 catherineweir@cbbain.com facebook.com/catsyweir linkedin.com/in/catherineweir/ instagram.com/catsyweir/ youtube.com/channel/UCmu4AZ16UNVp7W1F5p4Ib4A
CURRENT vs PREVIOUS MONTH
CURRENT vs PREVIOUS YEAR
CURRENT vs QUARTER SAME MONTH LAST YEAR
Jun 21
May 21
% Change
Jun 21
Jun 20
% Change
Jun 21
Jun 20
% Change
For Sale
308
284
+8.5%
308
834
-63.1%
308
834
-63.1%
Sold
968
842
+15%
968
742
+30.5%
2629
1687
+55.8%
Pended
978
867
+12.8%
978
823
+18.8%
2652
1932
+37.3%
Avg Sq Ft Price (Sold)
$575
$551
+4.4%
$575
$438
+31.3%
$566.38
$426.70
+32.7%
Months of Inventory (Closed Sales)
0.3
0.3
0%
0.3
1.1
-71.2%
0.3
1.5
-79%
june 2021 is a Seller’s market! The number of homes
listed for sale was down from one year earlier and up from the previous month. The number of homes under contract was up compared to the previous month and up compared to the previous year. The Months of Inventory based on Closed Sales is down significantly from last year. Based on the 6 month trend, the Average Sold Price is up a whopping 33% over last year. The Average Days on Market is up slightly over last month, but down over half compared with last year as competitive offers with short closing times are getting accepted more often.
Homes on the Eastside are still closing at 109% of the listing price an increase of 10% compared to the previous year.
Q 2 2 02 1
Eastside Update
Catherine Weir Coldwell Banker Bain 1151 NW Sammamish Rd #103 Issaquah, WA 98027
Just Sold | $1,900,000
26698 SE 9 th Way, Sammamish, WA 98075
Just Sold | $1,700,000
524 205 th Avenue NE, Sammamish, WA 98074
“I value each and every one of my clients and always negotiate to get them the best terms possible. When you want first class service from someone that is honest, straightforward and an advocate for you – make me your first call.”
Catherine Weir