Lennox Scott, chairman and CEO of John L. Scott Real Estate, comments on the Northwest Multiple Listing Service (NWMLS) November housing numbers and gives his take on the market:
“A mini power surge fueled the November market. We’re wrapping up the year as one of the best on record, but the big story is the huge number of sales activity this time of year compared to the low number of new listings coming on the market. The sales activity to new listing ratio is incredible. In November pending sales in the four-county area of King, Snohomish, Pierce and Kitsap counties were the highest they’ve been in 10 years. There were 44 percent more pendings than new listings. We call this a mini power surge. Every time interest rates increase .5 percent, we see these surges because buyers become anxious about increasing rates. The good news is that on a historical basis interest rates continue to be amazing.
Overall, the market continues to be frenzy hot on a seasonality basis, as we’re seeing the same positive momentum in the Puget Sound real estate market as last year. We’ll be entering 2017 with an extremely severe inventory shortage that is going to lead us into a huge price appreciation boost after the first of the year.
Both sales activity and new listings were higher last month in King, Snohomish, Kitsap and Pierce counties compared to a year ago.
For buyers, it continues to feel like they’re going up against multiple offer situations on every property. For sellers, it is the best time of year to sell, when the ratio for sales activity is at the highest for each new listing coming on the market.”