Puget Sound Housing Market Still 'Frenzied' In September

KIRKLAND, WA — September activity in Puget Sound's housing market ranged from "very active" to "frenzied," according to a new report. The Kirkland-based Northwest Multiple Listing Service, which tracks real estate trends in 26 Washington counties, released its latest monthly analysis this week.

Overall, realtors saw few signs of things slowing down, besides a slight slip in the number of pending sales. Even with the small decline, the amount of mutually accepted offers in King, Pierce, Snohomish and Kitsap counties carried Puget Sound to its second-best September on record, going back to 2003.

However, low inventory across the region continues to present a challenge for buyers. While September showed slight improvement from August, active listings were still down nearly 15 percent from the same time last year, the report found. For single-family homes, King County saw the sharpest decline in available inventory, down more than 32 percent from one year ago.

"While one could expect months of supply to increase around the end of the summer, shortage of supply still remains a significant issue, indicating demand still exists in many submarkets," said James Young, director of the Washington Center for Real Estate Research. "With decreases in active listings in King and Snohomish counties, price pressure may increase in urban areas of the region as people return to the city for work."

For prices, King County has seen gains in the single digits, while every "outer suburban" county saw asking prices soar by at least 15 percent. In Kittitas County, prices in communities like Ellensburg and Suncadia surged 26 percent.

In Pierce County, inventory is in better shape since last year, but prices have risen more than 16 percent. Dick Beeson, a managing broker for RE/MAX around Tacoma and Gig Habor, called the current market "brutal and unforgiving" with "dreams being crushed on all sides."

"Buyers are swallowing hard and paying prices they curse, while sellers are having to move somewhere they hadn't originally planned — be that good or bad," Beeson said.

The strain on available housing has lent to a sparse condo inventory, too, and prices are way up across the region. King County, which accounts for 70 percent of the region's condo inventory and 60 percent of condo sales, saw prices grow by about 8 percent, but was outpaced again by its neighbors. Condo prices in Kitsap County surged more than 28 percent and Pierce County's grew by nearly 17 percent.

Even with the flurry of September activity, realtors said things should calm down a bit heading into the holidays and buyers should keep an eye on listings while they may have fewer competitors.

"One positive note for buyers is that prices are beginning to level out and the annual trend of the market slowing down as we move into the holidays remains," said John Deely, executive vice president at Coldwell Banker Bain. "Buyers should consider staying in the market, if they can, as homeowners who are selling in the last quarter of the year tend to be highly motivated. Buyers will find less competition this time of year due to inclement weather and holiday travel."