Today, we will be talking about the Seller market of May 2022. This market is incredibly competitive, and it’s becoming increasingly important for sellers to stay ahead of the curve. We’ll cover everything you need to know so that you can make the most of your listing and marketing efforts.
Table of Contents
Comparing May 2022’s Sales Stats With April 2022, May 2021
Below, we’ll compare statistics between this year’s May to Last Year and Last Month. We’ll also highlight the current inventory state and pending properties in the property market.
Properties Sold
- A total of 7495 properties were sold in May 2022, which is 3% higher than the 7276 sales of last month.
- On the other hand, the sales were less than in May 2021. A total of 8165 were sold in the previous year, which is 8.2% more.
- Sale listings were up 30% from last year and 56.7% from the previous month.
Average Sold Price
- The average sold price also increased by 4.7% from last month.
- The per Square Footage median price was up 2.4% compared to the previous month and up 17.6% compared to last year.
- The average days on the market showed a downward trend, a decrease of 14.3% compared to the previous year.
Inventory
This year’s more considerable inventory means buyers who wait to buy may have a more extensive selection.
- This month, the total number of properties available is higher by 1304 units of 30%.
- The current inventory is up 56.7% compared to the previous month.
Pended Properties
Pended sales have been through all the steps of the closing process but have not yet been completed.
- This month’s pended property sales were 2.3% lower than last year’s.
- There was an increase of 1.7% in the pended properties in May, with 7923 properties versus 7793 last month.
State of The Market
The increasing sales and the continuous growth of the market means room for new homes to be sold in Bellevue Real Estate area! This post will look at how the market has changed since May 2021, how single homes are in demand, and the fierce competition. We’ll also see how sales and the market are growing continuously. So if you’re in the market for a new home, check out our listings!
Single Family Homes
Last month, the report’s sales of single-family homes and condos had a retail value to actual sales proportion of 107.8%, down from 108.2% in April. The percentage was 106.6 percent a year ago. The most recent M.L.S. report revealed a mixed bag of positive and bad results. In May, 11,681 new orders of single-family houses and apartments were made available. Single-family house prices have been soaring this year, with the average sales price in King County just short of $1 Million as of May.
Fierce Competition
However, for homebuyers in King County, the market is still in severe need of supply, and pricing is as intense as it has always been. Just at the end of the month, the database’s inventory of homes and condos reached 6,514, the highest after September 2021’s 7,757 active listings. To raise availability, most additional listings (11,681) outnumbered the number of existing sales (9,760). Scheduled sales were down 7.8% year over year and 3% month over month. It indicates that interest rates are dropping in some portions of the metropolitan market, especially along the I-5 region. The drop in interest rates is also a positive factor for buyers.
Increase in Sales
Due to the scarcity of options, sales in specific locations plummeted while prices rose. In King County, where over 60% of transactions transpired, Y.O.Y. prices jumped 12.6%, from $460,000 to $518,000. Prices for single-family homes in King County increased nearly 20% yearly, from $830,000 to $995,000. Closed sales of homes and condos fell 5.1% year on year, from 8,791 to 8,344 units.
The big hike in mortgage rates earlier this year is beginning to impact, with increased active listings and months of inventory moving higher. However, the real impact will likely not be realized for a few months.
Continuous Growth of Housing Market
Rising finance costs have had little effect on home price rise. Snohomish County has the highest employment rate in the four-county Puget Sound area, at 27%. In most counties, inventory is increasing, providing buyers more options and allowing sellers to be more accommodating with funding and inspector restrictions. Multiple offers are still being made on desirable homes and properties in the middle of the market. In essence, the Washington Real Estate market is continuing to grow at a steady rate.
Effect of Mortgage Rates on The Market
Current interest rates have put some heat on higher-priced residences that require a mortgage. According to the N.W.M.L.S. data, the combined supply of single-family houses and apartments was roughly three weeks at the end of May. It is the highest in nearly 18 months, according to this statistic. In October 2020, according to M.L.S. data, there were 80 months of supply. Brokers report solid business and are not witnessing prices decrease much, despite increasing inventory and higher interest rates.
Predictions
Rising inflation and interest rates, combined with a minor increase in inventory, should help Western Washington’s frantic housing market return to normalcy. In most regions, the housing market in Puget Sound has cooled significantly. It is now more in line with the significant market before the pandemic. Not every home sells within the first week of being on the market.
Due to the intensity adjustment, many offers would not be as frequent as they were in the last two years. Pricing is also weakening. The usual cycle in the property market will become more apparent, providing home buyers and sellers with a sense of normalcy. However, “increased buyer concentration on every sale will still exist.”
Conclusion
As the hunt for a bargain among first-time buyers continues, it will be interesting to monitor how bond yields influence these markets. With mortgage interest rates rising in preparation for the Central bank’s rises in its base rate, several brokers advise prospective house buyers to act quickly. Interest rates are unlikely to return to their previous levels of 3%. It’s never been more necessary to get prequalified and start looking for a home than it is now.
We hope you’ve found this blog helpful in identifying the State of the market and gaining a better understanding of what’s happening. Be sure to check back regularly as we keep updating you on the latest happenings in the industry!
