Housing Shortages, Weather Slow Puget Sound Real Estate Trends

KIRKLAND, WA — Realtors across Washington ended a robust year on a rather quiet note, noting a stronger-than-usual seasonal slowdown in December, compounded by a sharp decline in available inventory, rising prices, severe winter weather and the holidays.

The Kirkland-based Northwest Multiple Listing Service released its December report this month, putting a cap on a busy year for the housing market across the region. In the 26 counties included in the report, overall listing dropped more than 12 percent between November and December, as year-over-year inventory and sales figures dipped by double digits.

However, overall prices were up more than 17 percent on average, with some counties surging more than 20 percent, the NWMLS found.

"The median price for last month's closed sales was $572,900, up from 12 months ago when it was $488,000," the firm wrote. "Prices for single family homes (excluding condos) surged nearly 17.5%, from $502,247 to $590,000. King County was one of the only three counties where the single family price change was under 10%; prices there rose from $740,000 to $810,000. A dozen counties had price jumps of 20% or more."

Brokers in the 26 counties reported just over 8,000 closed sales in December, down about 1,000 from the same time in 2020. NWMLS said nearly a dozen counties saw double-digit declines in sales, including a more than 16 percent dip in King County and more than 17 percent in Snohomish County.

"That's to be expected considering inventory in the fourth quarter was down sharply from last year," said Dick Beeson, a managing broker at RE/MAX Northwest. "You can't sell what isn't there."

As a whole, 2021 proved to be a strong year for sellers across the state, with total closed sales up 12.1 percent in 2021 compared to 2020, for a total of 107,354 sold, NWMLS found.

"Last year was quite a year for the housing market," said Matthew Gardner, the chief economist at Windermere Real Estate. "Even in the face of historically low inventory levels, home sales in the Central Puget Sound area still managed to rise to levels not seen since 2006 and, notably, Pierce and Kitsap counties had more sales than ever before."

Despite the December downturn, brokers said they feel confident in a quick rebound in sales for 2022. Buyers, once again, can expect to pay more.

"Fresh on the heels of the holiday season and snowy weather, the local market will see continued strong buyer demand, multiple offers, and premium pricing," said J. Lennox Scott, CEO at John L. Scott. "This year is poised to be another great year in residential real estate."

The NWMLS will release more highlights for 2021's housing and real estate trends later this month.