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If you thought inventory couldn’t go lower, think again.

By
Real Estate Agent with RSVP Real Estate WA 47927

Sold out!In its January 6, 2016, release, the Northwest Multiple Listing Service (NWMLS) quoted a broker as saying:  “The lack of inventory makes buyers twitch when a new listing hits the market.” No wonder, because area-wide there was a supply for just under 1.8 months. In King County, inventory dropped to less than one month (0.84).  This means that in less than a month there would be no King County homes left to buy if no new homes came on the market.

Worse than in 2014

In January 2015, the monthly news release of the NWMLS stated: Figures show about 2.8 months of inventory system-wide. Commenting on the scarce inventory in some areas, the head of a real estate company advised, “Anyone thinking of buying a home should do it early in 2015!” 

Cash sales and multiple offers

Although the percentage of sales that are cash sales is dropping, in 2015 they still accounted for a substantial portion of Seattle are home sales. For example, the number of cash purchases for single family homes was still 40% in the 98004 Zip code area of Bellevue. 

So, why this persistently low inventory?

For the answer and more on the subject of low inventory visit SERENE - SeattleRealEstateNews.com

Posted by

Seattle Area Real Estate

 

Show All Comments Sort:
Patricia Feager
Flower Mound, TX

Low inventory and multiple offers persists in North Dallas Texas too.

Your article is outstanding!!! Clearly you know your market and can articulate the issues well!

Mar 12, 2016 11:22 AM
Gerhard Ade

Thanks, Patricia.


I don't know how long this low inventory market can last. It's a good time to be a listing agent.

Mar 17, 2016 05:24 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gerhard, our has decreased by 50% since last August, and is seriously a Seller's market with 20+ offers submitted on many homes under $500K.

Mar 16, 2016 10:07 PM
Gerhard Ade

Right, Joan. Same here in the Seattle area. Multiple offers and escalation clauses are the norm.

Mar 17, 2016 05:25 PM
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

The inventory is now strting to pick up just a little, but they are only on the market couple of days, before getting multiple offers.

Apr 08, 2016 09:03 AM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Gerhard, I was listening to NPR today and they were saying that we are showing in the West, a consistent drop in values, which I, frankly, am not seeing...how 'bout you?

Apr 25, 2016 11:57 AM
Gerhard Ade

Hi Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905  - I have no idea what "West" NPR is talking about. I can't see any consistent drop of values in the Seattle area. I do see a few price reductions of unrealistic asking prices. I will be listing three homes in May in very different areas. In preparation, I keep checking the market for all three. What I see is a lack of inventory in all of them. Unless a lot of buyers start staying home or listings start increasing substantially, I don't see a drop in value for at least another three months. By the way, I checked out Fishhawk Lake and I'm intrigued. 

Apr 25, 2016 02:29 PM