In King County, the real estate market rebounded so fast and so strongly that it was bound to slow down, but is this slow down a sign of a softening of the market or just a seasonal adjustment?
The above chart shows listing (think supply) and pending sales (think demand) and the relationship between the two. Simply put, the closer the green bar is to the blue bar, the better it is for sellers. The further away they get, the better it is for buyers.
Another great resource and my go to reference for tracking the local market is Alan Pope’s charts. According to Alan’s chart we saw almost 97% of the homes on the market in King County receive an offer in March of 2013. This number is staggering. To help put that number in perspective, remember the boom years when anyone with a pulse could get a loan. During that time of easy money we only saw a peak of about 65% absorption rate.
Alan’s chart shows what is appearing to be a pretty dramatic fall from the seasonal peak of the early spring months, but it’s a fall to only 74%, which is still an unbelievably hot market. My concern is that we are now starting to see inventory rise later in the year than what is typical for the end-of-summer seasonal period.
All the media promotion of our newly found seller’s market just might be bringing sellers to the table hoping to snag an offer at a price that will allow them to move forward with the dream of moving to a new home, a dream that’s been on pause waiting for a recovery.
I’ll be watching these numbers closely, be sure to subscribe or check back often to stay updated. If that fall continues to drop straight down, I’ll be sure to update you here.