Seattle sees month-to-month enhance in housing stock; costs proceed to rise: report

Seattle has struggled with low housing stocks throughout the coronavirus pandemic. The limited number of homes in the market has driven prices so high as homes regularly receive multiple offers from eager buyers.

But according to a new report from Zillow, inventory for sale in Seattle rose 11.3% month-over-month in March, after falling 8.2% month-over-month in February. Year-on-year inventory is still more than 20% lower than at the same time last year.

Nationally, US new listings rose about 30% from February to late March from February to late March, but the total stock was still down about 1.1%. Although the total inventory decreased, the decrease was the smallest compared to the months since July last year and “follows much larger monthly decreases of 7.5% and 8.1% in February and January,” the study said.

“Home value growth continued to surge and the rental market continued to recover in March – but there are signs that the country’s ongoing inventory shortage may ease somewhat, in time for the traditionally busy spring home buying season,” the study said.

Inventories for sale also rose month on month in about 19 of the country’s 50 largest metropolitan areas, including San Jose and San Francisco, the study found.

“March often sees inventory spikes, and the return to some seasonal norms is a positive sign that supply is starting to catch up with demand,” Zillow economist Treh Manhertz said in a press release. “With property values ​​skyrocketing, vaccination rates soaring, and the long-term orientation of employees where they can work, we expect an increasing number of homeowners to enter the market and get on the list in the coming months. This will be welcome news for home buyers who are seeing bidding wars and homes being taken off the market weeks faster than usual. “

Still, real estate prices in Seattle and several major metropolitan areas have continued to rise, making it difficult for people to find affordable housing in the area. Typical home values ​​in Seattle rose more than 13% year-over-year and about 1% between February and March.

Going forward, experts expect 2021 to remain a strong year for the housing market across the country.

“While the rapid rise in house prices has fueled fears of another housing bubble, strong fundamentals are underpinning the heat in the market. Average buyer creditworthiness is much higher than it was in the early 2000s, lending standards are stricter, and future demand – including from a wave of millennials transitioning into home buying – is expected to see strong sales in the months ahead stay, ”says the report.

This is how Seattle’s inventory compares to other metropolitan areas in March.

The San Jose skyline is seen from City Hall in San Jose, Calif., Tuesday February 5, 2013. Silicon Valley is leading the rest of the country out of recession with more jobs, incomes and IPOs in the past year, according to a new regional report. (AP Photo / Jeff Chiu)Jeff Chiu / Associated Press

San Jose

San Jose recorded a 14.5% monthly inventory increase.

SEATTLE, WA – 2009: The downtown skyline and Space Needle is seen from Queen Anne Hill in this early morning 2009 Seattle, Washington, urban landscape photo.

George Rose / Getty Images

Seattle

Seattle saw its inventory increase 11.3% monthly.

San Francisco

San Francisco saw inventory increase by 9.5% monthly.

Scene of Boston skyline at twilight with expressway and traffic over the bridge, USA downtown skyline, architecture and buildings with touristic concept

Photographer is my life / Getty Images

Boston

Boston recorded a 6.4% monthly inventory increase.

Washington, DC

Where: Maryland
Reasons to visit: Great waterfront activities, high-end restaurants, museums, and historical monuments.

Danita Delimont / Getty Images / Gallo Images

Washington, DC

Washington, DC recorded a 6.4% monthly inventory increase.

RELATED REAL ESTATE NEWS: