March 2023 Real Estate Market Update

MARCH 2023

REAL ESTATE MARKET UPDATE

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February 2023 was a Seller's Market!

The number of for sale listings was up 100.7% from one year earlier and down 13.8% from the previous month. The number of sold listings decreased 18.3% year over year and increased 29.6% month over month. The number of under contract listings was up 13.7% compared to previous month and down 15.9% compared to previous year. The Months of Inventory based on Closed Sales was 1.7, up 147.6% from the previous year.

The Average Sold Price per Square Footage was up 5.2% compared to previous month and down 4.2% compared to last year. The Median Sold Price increased by 2.4% from last month. The Average Sold Price also increased by 4% from last month. Based on the 6 month trend, the Average Sold Price trend was "Neutral" and the Median Sold Price trend was "Neutral".

The Average Days on Market showed a upward trend, an increase of 150% compared to previous year. The ratio of Sold Price vs. Original List Price was 94%, a decrease of 10.3% compared to previous year.

Brokers say housing activity seems to be trending in direction of a normal seasonal market

Open house traffic has been brisk around Western Washington, signaling the start of the spring market, suggested brokers at Northwest Multiple Listing Service. They noted softening prices are enticing some would-be buyers, while others remain on the sidelines hoping fluctuating mortgage rates will stabilize or decline.

Newly released statistics from the MLS for February show upticks in new listings, pending sales, closed sales and median prices compared to January, but when compared to the same month a year ago, figures for those metrics declined.

Both inventory and interest rates are worrisome for some buyers, according to spokespersons with the multiple listing service.

At the end of February, the MLS report shows only 1.7 months of supply across the 26 counties in the report. While that’s an improvement from a year ago when there was only about 0.7 months of supply (about three weeks), it is down from January’s total of about 2.5 months. A supply of four-to-six months is considered a balanced market, according to the National Association of Realtors and other industry watchers.

Closed sales numbers for February had a similar pattern as pending sales. Brokers reported 4,258 completed transactions, a drop of about 17.3% from the same month a year ago. Compared to January, brokers reported 994 more closings for a gain of more than 30%.

The median price systemwide on February’s closed sales was $575,000, down 1.7% from the same month a year ago, but up 3.1% from January. Year-over-year sales prices slipped in all but six counties. YOY asking prices were unchanged areawide, at $650,000, but vary widely by area.