King County Real Estate Market Update | June 2024

 In #King County Real Estate Market, #Thoughts, Seattle Real Estate Market Updates

Hey all, Zach McDonald, your real estate agent with Real Property Associates, and this is my King County Real Estate market update for June, 2024.

Welcome, if you are new to the channel, and every month we look at the data from King County and the Northwest Multiple Listing Service. And what we’re looking at is we’re looking at May’s data. So we look at the month prior and we look at residential data specifically for all of King County. And as we’re looking at this information, one of the first things that comes to my mind is that King County is now up above $1 million for the median sales price across King County. The median sales price is now above $1 million. And the last time I said this was back in February, 2022 when I was on King five, they had a little segment and they interviewed me to talk about the data and how we just pushed over the million dollar mark and we’re back above the million dollar mark here in King County again at 1,020,995.

And that’s at 11.6% jump from last year. So last year, 9 14, 975, more than a hundred thousand dollars jump in King County, no joke. A hundred thousand more for the median sales price. And the average sales price is even more dramatic, 13.8% up year over year. And we’re looking at close to $150,000 more for a house than last year. If we look at the average sales price, homes are continuing to pick up as far as the prices in King County from last month. So we also saw that month over month jump, not quite as dramatically, but month over month jump from April to May. We’re also seeing a sustained amount over asking price. So about 3.5% above asking price. In King County last month and this month, we saw that homes were selling for 3.2% above asking. So still a considerable amount over the asking price, not anywhere near what the 2022 market was, but still it’s a healthy amount, 1.1% more than last year.

So things are remaining competitive, but not as competitive as they were earlier in the year. I would say, as we look at the inventory numbers, that’s the biggest thing. So we’ve been seeing more houses coming on the market. I mean, we saw 40.1% more houses coming on the market this last month than we did last year. So 3,150 houses in King County and the pending sales are up as well, 8.8%, but not nearly as much close sales up 12.2%. But again, not keeping up with the new listings. And what means is we’re seeing more houses coming on the market and staying on the market. So we have inventory or the amount of houses available building, and when that happens, we have less pressure driving prices up. I wouldn’t say anything’s driving prices down right now, and that’s why we continue to see prices going up.

But what we’re seeing is we’re seeing less of the pressure on prices. So we went from last month, 1,760 houses available in King County to 2,593. So that’s a pretty huge jump. And we also have a pretty good jump from last year of 27.7%. Now, that also means that the supply numbers, if we look at it more of a percentage, right? We had 1.2 months of supply last month. Now we have 1.8 months of supply, so a lot more houses available in King County, which has slowed things a little bit. I wouldn’t say it’s slow, but things have slowed down a little bit. And one of the things that I was projecting earlier in the year, so before the year even started was that if we saw interest rates come down, that we would see a prolonged spring selling season. Typically in the spring, you have lower inventory, a ton of buyers, and you have competition, which drives the prices up earlier in the year.

And then typically things kind of level off a little bit In the summertime. I was thinking that if we saw interest rates come down, that prices would continue climbing at a pretty rapid rate. And we haven’t seen interest rates come down yet. And that’s the thing that I think we all need to be watching right now. Interest rates are high still in that seven to a seven and a quarter range. Most recently, mortgage news daily yesterday’s data was showing 7.17% interest rates. But when interest rates do start coming down, we’re going to see more upward pressure on prices too. So there are a couple different things, putting pressure on prices. Part of it is the supply, right? The amount of houses, but then the demand and what happens when money’s cheaper as the demand goes up. And right now the supply has been going up, but the demand hasn’t really changed a lot for the supply.

But when the money gets cheaper, then those things are more equal. So right now we’re just seeing a little bit more inventory coming on the market, and that is good for buyers. So if you’re a buyer, this is really good news because number one, there are a lot more options to choose from. And then number two, you have less competition for the options that are available for sellers. This isn’t necessarily a discouraging report or information, it just means that things are slowing down a tad. Maybe if your neighbor sold last month and got 12 offers, you might not get 12, you might get two or three, but you’re still likely going to see multiple offers depending on where you’re at in King County. And you’re also going to likely have a little competition, whether it’s on terms or price, maybe it’s not on both. And that’s the difference when things aren’t quite as competitive.

Maybe you’re choosing an offer that has a better price, or maybe you’re choosing an offer with some better terms, but not both. Whereas when things are super competitive, you’re seeing the best of both worlds as a seller. So I guess depending on who you are, this is encouraging news or discouraging news. But I think overall the market has been recovering in King County, which is a good thing. You want to have a housing market that is stable. It’s definitely stabilized, I think, and continuing to not quite make it all the way back to where it was, but it’s getting pretty darn close here. So if you made it all the way to the end here, I’m super grateful. Thank you for your attention and I value your tuning in to these market updates. If you got some value, would you please consider giving it a thumbs up? So always welcomed. And then also if there’s anybody you know who could benefit from this content, I’d love it if you shared it with them. And of course, if there’s any way that I can bring value to your situation as a buyer or seller, investor here in the Seattle area, I’d love to be a resource.

Recommended Posts
Contact Zach

Let me know how I can help!