The latest data from the Northwest Multiple Listing Service (NWMLS) shows steady demand from local buyers. While national reports highlight very low pending sales, this is not the case in our area. Although the number of pending deals has been somewhat limited due to a lack of available inventory, demand remains strong. In August alone, there were 283 pending sales, reflecting substantial buyer interest despite the supply challenges.
Regardless, pending sales don't tell the whole story. Months of supply (closed sales/active listings) is more dependable in forecasting a changing market. A balanced market is 3-6 months of supply. Right now there are 2.6 months of supply, ample demand based on the current inventory.
The number of closed sales are down compared to last year. Fewer buyers can purchase a home at the current time due to the very poor affordability.
The number of homes on the market is still diminished with 638 homes for sale. This is higher than last year, but still very low historically. This is what led to the low months of supply.
Months of supply has remained low. As a result, prices remain high. The graph below shows the median price of $680,000 in August, an all time high. We do have to be wary of tracking the median price monthly because of statistical noise.
Analyzing the median price on a three-month moving average has proved more dependable when trying to read conclusions from the numbers.
Further showing healthy demand, the average days on market was 27 in August.
Despite national trends showing a slowdown, the local real estate market continues to demonstrate robust demand, even with ongoing affordability challenges. With only 2.6 months of supply, our market remains well below the balanced range of 3-6 months, keeping pressure on prices, which reached a record median high of $680,000 in August. While the number of closed sales has dipped compared to last year due to affordability issues, the limited supply leads to full absorption. Moving forward, monitoring the months of supply will provide a clearer picture of market trends and help us navigate any shifts ahead.
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