As we enter the fall season, brokers report that the real estate market is still highly saturated with buying activity. Concurrently there’s been a decline in mortgage applications, despite mortgage rates remaining below 3 percent. Low interest rates have contributed to a significants increase in refinances and in turn, a decrease in home inventory available for sale as homeowners decide to stay put.

Low mortgage rates and low inventory of houses have also continued to drive up home prices, making the market extremely competitive for homebuyers. The competitive landscape has not deterred buyers, as there have been more multiple offer situations and an increased number of closed sales in our region. According to the Seattle Times, price growth in King, Pierce and Snohomish counties topped national averages for the eighth month straight. The most recent statistics from the Northwest MLS also show median closed-sale prices for single-family homes are up significantly. Year-over-year in King County prices are up by 10.89 percent, in Snohomish County up by 13.27 percent, in Pierce County up by almost 15.84 perfect and in Thurston County up by nearly 11.91 percent.

These market conditions are said to have affected the home buying demographic and influenced trends. Many more young home buyers have entered the market as millennial are reportedly taking out more for-purchase loans than last year. It will also be interesting to see if there is continued movement out of urban areas in to the suburban and rural areas since more people are able to work remotely on a permanent basis due to the pandemic. As we approach the winter months. time will tell how these trends will shape the upcoming real estate market and how the amount of inventory available to purchase will affect buyer demand.