Submitted by John L. Scott Real Estate

It may be chilly outside but the Redmond housing market continues to be hot for sellers. In December, pending sales of single-family homes dropped 45.8 percent, from 48 to 26, but pending sales were only 7.1 percent lower than December of 2014. This drop was anticipated due to the holidays. However, since inventory dropped from 1.4 to .8, a 29.6 percent drop, it is clear that if there were more homes on the market pending sales would have been higher. Homes are snatched up as soon as they hit the market.

Overall, new listings fell 20.7 percent last month but were 11.5 percent lower than a year ago.

“Year 2015 was the second best year on record,” said Lennox Scott, chairman and CEO of John L. Scott Real Estate. “The real estate market will be more intense in 2016. The Redmond culture, including its high percentage of local tech companies, strong school system, and proximity to both downtown Bellevue and Seattle, make it a very desirable area. It’s a fast market, and what inventory does come on the market gets immediate action. We would be selling more homes if we had the inventory.”

“Those of us lucky enough to spend time in Redmond know what an amazing place it is to live and work because of its natural beauty and abundance of amenities,” said Mona Spencer, managing broker of John L. Scott Real Estate’s Redmond office. “Unfortunately, for buyers there is not currently an abundance of homes for sale, which is one reason why prices continue to rise, selling in multiple offers, at approximately 101 percent over list price. The average price per square foot for a Redmond home has increased dramatically in the last year, from $218/square foot in December of 2014 to $256/square foot last month.”

In neighborhoods such as downtown, Grass Lawn and Education Hill, for example, there is extreme buyer demand and extremely low inventory, she says. “One of the contributing factors for the low inventory is that sellers are reluctant to put their homes on the market for fear that they will not be able to find a replacement home. If you’re thinking of selling, and the timing is right, it’s a great time to do so.”

Looking ahead:

January-February: The number of new resale listings will be in short supply.

March through the end of summer: The number of new listings will increase.

Price appreciation will continue within selected price ranges in each market area where there is a shortage/low inventory of homes to sell.