Puget Sound Real Estate Market Update- April 2017
April 10, 2017 | Fred Hubbard
Here’s what’s happening in the
Puget Sound Real Estate Market
I recently read an article on Q-13 fox’s website about tech jobs changing the costs in Western Washington.
The article cited the booming tech industry and their relatively high wages to the increasing costs of housing here in the Puget Sound.
Purchase price and rental price.
While I’m sure this isn’t the only factor to rising home prices, there is no question that rental prices and home prices are continuing to rise, and homes are renting and selling at record speeds.
In Kitsap county the average sales price rose by 9.4%, 10.5 % in Pierce county and 11% in King county – compared to this time last year.
Monthly Supply on the entire Northwest MLS slid back further, from last month’s 2.2 supply to an overall supply of 2.1 months.
With 399 less homes listed for sale on the Northwest MLS
In March, the months supply was:
2.2 months in Kitsap County ; Down .5 from March 2016.
2.1 months in Pierce County; Down .7 from March 2016.
1.3 months in King County; Down .2 from March 2016
Down 18.5% in Kitsap County, 25% in Pierce County, and 13.3% in King County from this time last year
With the fast ferry coming in July.
I think demand will increase in the Bremerton and Kitsap areas, as residents of Seattle head there for price relief.
This demand and low days on market can only add fuel to the flipping frenzy.
Am I the only one who as noticed the signs going up everywhere “we buy houses cash”?
The average days on market:
44 days in Kitsap County; down 1 day from last month.
44 days in Pierce County
32 days in King County
Kitsap was down 21.1%, Pierce was down 21.4% and King was down 8.6% when compared to last years average days on market in March.
Flipping has turned into a frenzy now that Real Estate investing is “in again”
Don’t get me wrong, professional “flippers” are great. They clean up older neighborhoods and stimulate the local economy.
What makes me nervous are the inexperienced “flippers” I am seeing, that are bidding to “win” the house without figuring for profit.
Bidding wars are taking place for properties that are literally full of hypodermic needles.
The idea of quick profit made with cheap money is hard to resist.
Even with the quarter percent hike in interest rates in March, to a price rate of 1% interest rates are still at all time lows and money remains “cheap”.
Prices can’t rise forever and rates will rise. The fun part for me at least is “being in the game when the plays are called”.