Seattle-area home prices were up 10.3 percent year over year in May according to Redfin, but at least one agent for the real estate company sees a slowdown period as plunging inventory and continued bidding wars have left buyers feeling “demoralized.”
“I’m starting to see a bit of a cooling off period as buyers are becoming more and more leery of multiple offer scenarios and wild bidding,” Seattle Redfin agent Allie Howard said in a news release. “The early spring inventory was ferociously gobbled up, and it has left the remaining buyers feeling demoralized, especially in the step-up housing market.”
Inventory was down 29.2 percent from last year, according to Redfin, and sales were only up .4 percent. With a median seven days on the market, Seattle’s sales pace was tied with Portland and second only to Denver, which saw new listings selling in six days or less.
The three cities top Redfin’s list of the hottest housing markets of 2016. The numbers are based on Redfin’s “Hot Homes” algorithm to identify homes likely to sell within two weeks.
Sellers in the Seattle continue to make out nicely when it comes to sale-to-list prices, as homes sold for 103.2 percent of the asking price in May. San Francisco continues to lead the country at 106.9 percent, along with other cities in the West such as Oakland (105.2 percent), San Jose (104.4 percent), Portland (102 percent), Denver (101.3 percent), and Tacoma, Wash. (100.6 percent).
If fatigue is setting in for Seattle buyers, they can look to more affordable cities in the Midwest and South, but they better hurry. New opportunities in tech and companies that are letting employees work remotely are driving sales in places like Grand Rapids, Mich.
“We’re seeing an influx of buyers from places like San Francisco, Southern California, Seattle and Washington, D.C. Most new residents are lured by tech jobs and opportunities to work remotely,” said Grand Rapids Redfin agent Kent Selders. “Locals are watching prices rise, and many realize if they don’t buy soon, they’ll miss out while homes are still affordable. The result is incredible demand and rapid sales. Nothing like this has ever happened in Grand Rapids.”
