According to Northwest Multiple Listing Service - brokers completed 10,175 sales transactions during September 2020 – the highest monthly volume since June 2018. September’s closings also marked a jump of nearly 28% from the same month a year ago, according to the latest statistical summary from the MLS. This significant increase speaks to sellers becoming much more confident and buyers competing more effectively, most likely due to low interest rates. It’s as if we just completed our typical ‘spring’ market. The new report from Northwest MLS showed a sharp year-over-year (YOY) drop in inventory (down 43% from a year ago), a robust increase (23%) in pending sales (mutually accepted offers), and a sizeable surge (19%) in prices for single family homes and condos combined.

Whether last week’s announcement from Boeing to consolidate to a single 787 production location in South Carolina resulting in the loss of about 900 Puget Sound jobs will dampen home sales is unclear. An increase in the number of homes for sale as workers either leave the area or decide to sell to access the equity they have in their homes. If this does happen, the increased supply will likely be absorbed by buyers who currently have a limited number of homes to choose from and counter any downward pressure on prices. Any impacts will be counteracted given recent expansion announcements by Facebook, Amazon, and Microsoft to either purchase, build or renovate major office buildings in the region. Impacts of the coronavirus pandemic on the housing market are prevalent. COVID-19 has made many reflect on what their home means to them. As a result, many people are looking to create that ideal place to call home. Rotation of home ownership is seen, whether that means refinancing, remodelling, or moving. With the trend toward employers allowing (and in some cases, requiring) employees to work remotely, we have seen a very noteworthy increase of sales in the more affordable suburban cities.

Examples of COVID-related housing movement stories are constantly heard from agents, such as a willingness to live further out, plans to move to the Pacific Northwest due to the ability to work remotely, a desire for a yard, home office, vacation property, etc. People working from home, especially those with kids being schooled at home, seek both space and value. Those who already have a home have little incentive to leave. The current scenario is “too much demand and limited supply” coupled with low interest rates as “the perfect price storm.”