New data from the NWMLS Market Update shows that the region is experiencing the largest inventory supply in three years. The number of active listings at the end of August was up nearly 11 percent compared to July, and the highest level since September 2015. Despite the increase in inventory system-wide, there is two months of supply, which is less than the four-to-six-month range used as a gauge of a balanced market.
The number of active listings in King County is up 74.3 percent from a year ago, as it has grown from 3,329 listings to 5,803. The median price for a single-family home in King County also increased compared to last year, up 2.9 percent from $650,000 to $669,000. However, the current median is down $57,000 from the this year’s-high (set in May) of $726,275. During the same three-month stretch in 2017 prices went up $16,000.
In Seattle, the single-family home inventory is up 86 percent, and condos 161 percent. The median is now $760,000, down $45,000 from July, and $70,000 in just three months.
The changes in the market can be attributed to a number of factors, some being that homes are sitting on the market longer than they recently have and the decrease in the number of new residents coming to the area. Last year, the city was averaging 74 new people per day, now, that number has dropped by more than a third.
Nevada recently passed Washington on the list of states with the fastest-rising home prices after Washington led the country for a year and half. Las Vegas also ended Seattle’s 21-month streak as the nation’s hottest housing market. Nevada remains around $100,000 cheaper than Washington for the average home, and Seattle three times more expensive than Las Vegas.
A Zillow analysis shows that Seattle had the biggest slowdown in housing prices in the country. In June 2017, Seattle led the country with a home-value growth of 14.8 percent, now, Seattle has dropped to 12th.