1. Inventory remains low as strong demand persists
1,005 homes available in February, down from 1,143 homes in January.
If no new listings go on the market, all of the single-family homes will sell out by the end of this summer.
2. Foot traffic spikes in listed homes
In February, single-family home listings saw an average of 54 visits before going pending, up from just 31 visits in November 2020.
3. New construction home prices rise due to lumber shortages
The average price of a single-family new construction home has risen more than $24,000 due to shortages in worldwide lumber supply.
Seattle’s sizzling hot real estate market is not letting up. By the end of February, the King County single-family home inventory was only at 1,005 homes, down from 1,143 homes available in January. At this current pace, if there are no new listings, all of King County will run out of homes by the end of this summer, indicated by the 6 months supply of inventory. Of course, new listings will be hitting the market with spring around the corner, but month after month, there have seen more closed transactions than new listings going on the market.
It appears that home buyers are getting either more comfortable with the coronavirus exposure or are becoming more daring since foot traffic inside listed homes has spiked compared to just two months ago. In February, single-family home listings saw an average of 54 visits before going under contract, this is up from just 31 visits in November of 2020. This increase in visits is even more significant since days on market decreased in the same time period.
Low housing inventory is making new construction homes more appealing but it just keeps getting harder and harder for new home seekers to buy the home of their dreams. In the wake of COVID-19, lumber prices around the world have been especially volatile. Those looking to purchase a new construction home can expect to pay an extra $24,000 compared to April 2020.
This fast moving real estate market, coupled with high prices is making it much more challenging to purchase a home today. On the flip side, homeowners that are thinking about selling their home, are seeing amazing returns on their real estate investments, making this a great time to list.
*Statistics courtesy of the NW Multiple Listing Service and National Association of Home Builders
