Update on Tax Credit Impact on Seattle Housing Market

Sales statistics from the NWMLS show our housing market peaking in terms of numbers of transactions during the month of May, and declining thereafter. This may be due to the impact of the expiration of the HomeBuyer Tax Credit program, which required a signed contract by the end of April and closing by June. More sales took place in May than in any other month here in King County, but dropped off after that.

Last year the peak month for housing transactions was in July. Inventory at this same time last year was around 1100 listings, but this year is around 1700 listings. So inventory has grown, while the number of transactions continue to decline.

Median prices of sold single family homes have declined about 10% since last year, and now hover around $375,000. These market conditions favor cash buyers, pre-approved buyers, and first-time homebuyers who will see a wide selection of inventory, affordable purchase prices, and record low mortgage interest rates.