Nothing new, just Déjà vu in real estate | Real Estate Opinion

Lennox Scott, chairman and CEO of John L. Scott Real Estate comments on the NWMLS October housing numbers and gives his take on the market.

  • Friday, November 11, 2016 6:30pm
  • Business

Lennox Scott, chairman and CEO of John L. Scott Real Estate comments on the NWMLS October housing numbers and gives his take on the market.

“We’re heading into winter with a repeat of last year’s conditions: low inventory, a backlog of buyers, and historically low interest rates. Last month was the best October on record, and the surge-hot market continues on a seasonality basis. Starting in November, as daylight savings time falls back, so will home sales activity. The farther we move into November the more we’ll start feeling the typical seasonal drop when new listings coming on the market decline by 50 percent on a monthly basis when compared to spring and summer markets. But buyers are still out there, and just like last year, we’re going to see a strong winter market where the inventory remains tight throughout the season.

Last month there were more pending home sales than new listings in King, Snohomish, Kitsap, and Pierce counties compared to a year ago, especially in areas and price ranges where 90 percent of the sales activity is taking place. Out of the four-county area, Kitsap County was the only one that saw a slight increase in new residential listings over last year, and pending sales increased by 20.70 percent. Price appreciation is driving the strong Kitsap market.”

We are seeing a slight decrease in the number of multiple offer situations for new listings, but in areas close to job centers, especially on the Eastside, like Bellevue’s Somerset neighborhood, multiple offer situations and bidding wars continue. A recent example: JLS Broker Ann Pierson had a listing in Somerset in the mid 900s. During the first weekend they had an open house with traffic of over 300 visitors (mostly Chinese) and 29 offers came in the Tuesday after the open house (all Chinese). The family who won the home was relocating to Bellevue from China for a job with Expedia, and the home sold for over $1.1 million dollars.

October 2016 market characteristics:

These market conditions will continue until at least into the summer of 2017.

October 2016 was the best October on record for pending homes sales in history for the Puget Sound real estate market. We saw a decrease in new residential listings compared to a year ago in King, Snohomish, and Pierce Counties, but Kitsap County saw a slight increase from 373 last October to 401 last month (residential resale only, not including condo).

Expect inventory to drop by 50 percent on a monthly basis now until February of 2017.

Pending home sales outpaced new inventory for the month of October in the four-county area.

In the luxury market, sales activity of homes above one million is strong.

Interest rates continue to be historically low in the mid threes.

Katie Garrity is with John L. Scott Real Estate.

More in Business

Sajeenaa Jebanathan (Middle) from Lake Washington High School receives the Lee Johnson Student Community Service Award. Katie Searle (Right) a Lake Washington School District CTE Specialist, and Tod Johnson (Left) of the Johnson family presented the award. <em>Kristina Bowman, Lake Washington School District</em>
Kirkland Chamber of Commerce honors community at annual awards luncheon

The chamber recognizes individuals who’ve been impactful on Kirkland’s business community.

The Heathman Hotel completes multimillion-dollar renovation

The property remodeled its 91 guestrooms and suites with modern amenities and design concepts that celebrate its Northwest roots

Chamber names James as new president

James’ is to bring arts to the community and develop strong community relationships.

EvergreenHealth welcomes Zhou to heart and vascular team

Zhou brings an array of clinical experience to her new position.

The exterior of the new Hand & Stone Massage and Facial Spa. The location is still under renovations at the former Massage Envy location in Juanita Village. Kailan Manandic, Kirkland Reporter
Long-time locals join the Kirkland small business market

Three long-time locals are replacing a closed massage and skincare business in… Continue reading

Stacy Edwards, owner of the Eastside GYMGUYZ franchise, opens his van to show the various equipment his trainers use with their clients. Kailan Manandic, Kirkland Reporter
Local gym takes equipment on the road

Local gym owner Stacy Edwards opens his doors at 5 a.m. every… Continue reading

Kirkland Investor Sharks set for Nov. 4

The Kirkland Chamber of Commerce, in partnership with Kirkland Performance Center, will… Continue reading

Bridle Trails Red Apple to close in February

After 20 years in operation, the Bridle Trails Red Apple in Kirkland… Continue reading

Higher Leaf adds voice to support for city council

Higher Leaf Marijuana Kirkland and Bellevue recently expressed their appreciation for the… Continue reading

Freiheit & Ho Architects comes to Seattle Design Festival Block Party

Freiheit & Ho Architects will be participating in the 2017 Seattle Design… Continue reading

Kirkland Chamber of Commerce hosts a breakfast

The Greater Kirkland Chamber of Commerce invites members to learn how to… Continue reading