Real Estate Market News

In this article, we are going to jump into the MLS stats that came out just a few days ago for the month of May for basically all of Western Washington. Well, we are not going to cover is any of the other stuff going on in the world out there. Okay, so the highest headline of this month’s MLS report is housing activity in Western Washington shows resiliency as buyer sellers and brokers adjust to COVID-19 restrictions. So to kind of put us in perspective, basically the lockdown and the whole Coronavirus thing hit in March, like March 15. And there was a couple of days in there, whereas real estate brokers, we didn’t know if we were going to be essential or not. There was a Thursday and a Friday there was like, well, we didn’t make the cut. We’re not essential what do we do. But then by Monday, or maybe over the weekend, we got noticed that, yep, you guys are essential, here’s how it’s gonna go. And so we had two weeks in March, we had all of April, all of May. And now that we’re in June, we’ve kind of got some pretty good rearview mirror action going on and what’s happening with the market relative to COVID. So a lot of the stats that I’m going to cover here are starting to catch up with where we’re at with the whole lockdown and how buyers and sellers are reacting. And that’s what we’re getting into. So it’s hard to get excited about statistics, but at least we know where we sit with this month’s analysis of May.

So Alright, so the market is and I am reading directly from the northwest multiple listings news release. The market is proved to be very resilient remarked Northwest multiple listing service director Mike Larson upon reviewing this statistical report for May, buyers in Pierce County stepped on the gas last month after a brief but significant tap of the brakes in April added Larson, the president designated broker at Allen Realtors in Lakewood. Alright, so I think stepping on the gas after tapping the brakes, I don’t think I think buyers have stepped on the gas significantly. And we’re seeing that all across basically all markets. Tapping on the breaks that would be an understatement of two what happened with real estate. The brakes got stomped on just boom, stop the market and in and basically stomped on the brakes and then threw it in reverse and went backward because a lot of transactions got blown upright as the Coronavirus is hitting because either lenders weren’t lending they’re getting denied. letters are buyers were freaked out, justifiably so. And then sellers are pulling their houses off the market left and right. So it was a stopping of the brakes, a little reverse action. And then since then we’ve kind of moved forward. But despite the economic downturn and disruption stemming from the Coronavirus pandemic, Northwest Multiple Listing member brokers reported impressive improvement from April to May on some key indicators. The volume of new listings, including single-family homes and condominiums, Rose 29. 2%. And pending sales jumped more than 44% system-wide. Those are good numbers. But I think you’re that’s kind of expected to see that because as we progress with our state’s reopening, I know we hit phase 1. 5 which is modified phase one, why we don’t just go into phase two modified I’m not sure but this is all the political stuff that’s going on.

Be thankful for where we are You can go into a restaurant now two thumbs up for that you can get a haircut now one of my kids was telling me, Dad, I gotta wait for an hour that great clips to get my haircut and I’m like Gavin, you’re getting a haircut. So, you know, we’re moving forward, we’re getting some of the stuff back that we’re used to in our normal lives. And real estate is one of them. I think sellers are kind of looking around going man, our prices are pretty darn high considering we just came out of, you know, lockdown, and so maybe it’s time to put the house in the market. We are listing Summit Properties Northwest is listing a bunch of homes specifically this week. I’m not sure how many will actually bring on the market but there’s a lot of activity going on out there. And buyers are there. They’re out there looking to get some good weather and people are out looking in. So to have activity go up volume listings go up 29. 2%. That’s good, but we need way, way more 29. 2% compared to where we were, which was a market that got stopped in its tracks, we need a bunch more listings, pending sales jumping more than 44% system-wide. That’s month over month. So that’s April to May, April, horrific may better. That’s why you’re seeing a 44% increase in pending sales, you’ve got more deals going on, you’ve got more people out there, they’re less freaked out about going out. They’re kind of used to the idea buyers are used to the idea that we can only really go one on one with our real estate broker. And now we can go two on one with phase 1. 5 allowing that to happen. So three people total can go out looking at homes now. So continuing forward, not surprisingly year over year comparisons showed sharp declines.

The number of new listings fell nearly 33% total active listings plummeted nearly 36%pending sales declined 13. 5% that’s the interesting one that I thought was pretty amazing and Close sales dropped about 35%. Prices remained in positive territory rising about 2. 3% from a year ago. Now, these are year over year comparisons. So we are comparing may of 2019 to May of 2020. So some of those numbers are a little bit skewed because, in 2019, they’re not a little bit skewed. They’re a lot skewed in 2018. We didn’t have the Coronavirus. We weren’t in a pandemic. We didn’t have all this world craziness going on. So to see new listings fall 33%. Yeah, makes sense. Total accurate. active listings plummeted nearly 36%. Yep, that makes sense. Pending sales declined 13. 5%. I would think that that number would be significantly higher. That is not much of a drop year over year for pending sales and those are deals in the works. So that to me, tells me there was a bunch of activity That happened in the month of May 2020. And that’s kind of what I’m feeling what I felt like happened is the first two weeks in May, we’re still kind of everybody’s looking around and going all this isn’t good, this is not good. We need to keep you to stay home, we need to keep safe. And then halfway through May, it’s kind of like, the floodgates got released, right? People started going out, we started to get a little bit better weather here in Western Washington. And people were going out. And then I think by the end of May, it was like, all right, it’s all systems go, let’s get out there and go in a controlled manner within the guidelines of what we need to work with. So and then prices remained in positive territory rising about 2. 3% from a year ago.

So what you had there is between May of 2019 and may of 2020, but prices go up, and then they’ve come down with the COVID but we’re still up 2. 3%. So we are still up just a hair over where we were a year ago. And that’s pretty incredible all things considered, but we’re still so close time-wise to the pandemic that a lot of those statistics I think we haven’t seen yet. That’ll give us the full picture of where we’re at. Alright, so continuing forward. the resiliency of the market is amazing, remarked Dan roux behind. He’s the owner of village homes and properties in Woodinville. I didn’t think I would miss open houses until they could not happen. I’ve had that statement made by a number of brokers who said can we do open houses yet? Like no can’t do open houses probably won’t be able to do it for a while. But yeah, open houses. And he was referring to limitations on in-person interactions in an open house. The pandemic may be causing buyers to move further out wanting to get some space and a usable yard. That’s what he’s saying. amenities such as parks and trails are also important in current home-buying decisions. He added, yeah, but is that temporary? I feel like that’s temporary. people wanting to get some space in a usable yard. That’s, that’s always there. Maybe right now it’s specifically focused on because people are going crazy in their homes.

You hear stories of people who’ve like been literally in their home for like eight weeks. That’s just terrible. But you know, if you don’t feel comfortable going out, that’s what you do. So you hunker down. So you’re maybe sitting around and looking at your house going, I need some more space. I need a usable yard. Because if I’m going to be stuck doing this again, I want bigger space, but as the state reopens and as we get used to the idea, yep, Coronavirus is here. We don’t quite have a vaccine for it yet, but one is probably on its way. I think people get more used to the idea of Alright, I’m still in my house. I’m not really going to run around and just buy a home specifically for this purpose, but it’s certainly something that’s on the top of people’s minds, and then amenities such as parks and trails. I think those are always really sought after. By if you are not able to go to the gym and you’re looking at walking as your cardio or maybe running or hiking. Yeah, parks and trails are really important, except most of the facilities I see at parks are still shut down did a big walk with when my kids and his girlfriend last Wednesday and at Miramar park here in Redmond. And most of the facilities are still closed down. There are people using them but they’re not using them legally.

So, all right, let’s keep going. brokers and home buyers alike seem to be adjusting to restrictions imposed on the real estate industry because of the Coronavirus pandemic. Yeah, at first it was weird to wear a mask into a house. It was weird to go up to somebody and ham your real estate broker kind of thing. Do you know what I mean? And have to deal with the whole mass because you can just only see people’s eyes. It’s just a weird experience. But I think most of us are just used to it. Now I know I’m used to it. wearing a mask into a store. I don’t feel like everybody’s staring have gotten over that kind of mental objection and you just put on a mask because it makes other people feel good about the whole shopping experience or being around other people. So the local real estate market is hot, but it looks different than it traditionally does remark J. Lennox got L. Scott, Chairman and CEO of Scott real estate, the constraint on available inventory makes it feel like we’re running out of homes to sell. That is super true. We don’t have enough inventory. That’s been a reoccurring theme for years now. Not enough inventory. Home Builders haven’t been building enough homes since the great recession of 2008. And now we’ve got even less. So we’ve got a major supply issue with a lot of sellers not wanting to put their homes on the market because then they got to have a bunch of buyers come through and touch stuff and you got to clean stuff down. And yeah, it’s just kind of a nightmare. So big supply issues going on there. brokers added 9800 71 new listings to the MLS database during May sounds like a lot of homes, but it’s not. This compares to 14,689 for the same period a year ago. So let’s call it 99. Home 9900 homes, let’s call it 10,000 homes to the MLS database during May of 2020. And then let’s call it 15,000 for the same period a year ago.

To put that in perspective, so you’ve got a big drop in available inventory just we’re not bringing on the number of homes and during a pandemic, I think that’s pretty self-explanatory as to why you’re not seeing a lot of sellers rush to get their homes in the market. But I feel like that pressure in May 2 second half of maybe started to get they’re starting to see the rotations of people having that conversation with their broker specific with what are some brokers also starting to see some more volume of sales growth. Through the Reynolds and client-side, and a lot of that has to do with we are in Bellevue, we’re in King County, and a lot of King County homes are jumbo homes, meaning they are way over the lending limits of 750,000. You know, a million-dollar home and King County just doesn’t get you much. That’s like a starter home in a lot of neighborhoods. Believe it or not, that sounds crazy and absurd. But that’s where we’re at with Seattle. It’s a big urban city now, with big urban city problems and big urban city housing prices. So the jumbo market when the jumbo market basically shut down jumbo lending, shut down during the pandemic, we had zero lenders, we brought on one, so our credit union, now we’ve got five or six and maybe it’s even more than that now.

But a lot of what you’re seeing in King County specifically is there, there was a lack of financing. And then jumbo lenders were only lending up to 1. 5 million, which you know, two and a half million is not that big of a deal here in King County. That’s a nice home but it’s not a great Nice home, you know in a lot of really desirable, closer and location so I know for a lot of people those numbers just sound ridiculous and they are but it kind of is what it is. So the constraint on available inventory makes it feel like we’re running out of homes to sell and the reason it feels like we’re running out of homes to sell is because we kind of are system-wide I think we got 1. 7 months of inventory that is no inventory at all that’s basically sold out you know, you see those beams of store shelves with nothing on the stock except maybe a rapper or something somebody left there. But yeah, for housing. 1. 7 months of inventory is basically sold out at month-end, the selection included 10,357active listings, that volume was 5766 fewer than a year ago total of 16,133. So we’re down literally a third of the inventory that we have A year ago, that’s a big that’s a significant reduction in inventory.

So stated another way at the end of May, there was 1. 7 months 1. 74 months of supply across the 23 counties served by the Northwest multiple listing service. inventory levels ranged from 1. 1 month of supply in Thurston County. Thurston County being south of Pierce County. So King, Pierce Thurston, they’ve got 1. 1 month of supply that is that’s basically sold out. And then it ranges to more than eight months in San Juan County, San Juan Islands to the northwest of downtown Seattle. Now that’s kind of an anomaly because they don’t usually have a lot of inventory anyway. So you bring on like 10 homes in that market. Now you’ve got this massive oversupply.

So the San Juan Islands County, they kind of they go up and down like a yo-yo because there’s just not a lot of rotation of numbers there within the forecast. Puget Sound region. Kingston, how much Pierce and Kitsap supply range from 1. 2 months in Pierce County to1. 7 months in King County. So 1. 2 months is super low and 1. 74 months is still really low. So, again, we’ve got, you know, a total undersupply of housing. So john L. Scott said buyers are eagerly waiting for each home to come on the market with increased focus on homes and the more affordable and mid-price ranges. So, yeah, affordable housing. People are just and it depends on what market you’re looking at. But, you know, in the three to $400,000 range and a lot of the markets around here in Western Washington, those markets have a tremendous amount of pressure on them. And you’re seeing multiple offer situations, people waving their building inspections, just doing all kinds of craziness to get on home because that’s kind of what it takes to compete in this market. Continuing on anything under $1 million is selling quickly and most new listings coming to market are going pending in just a few days.

Yep, I’m seeing that across the board. This was a statement made by Mike Grady. He’s president and CEO at Coldwell Banker, Bane. multiple offers seem to be in play on homes in median price ranges. Yeah, and we’re seeing it on the low end we’re seeing starting to see a little bit of that on the more upper end, we don’t think we’ll see a balancing of the market in the short term until more sellers decide to list their homes and until new construction accelerates to meet demand. So we’re waiting for sellers to bring their homes on the market. I think as soon as sellers bring their homes on the market that’s going to get outstripped by buyer demand. I think that’s just gonna be this year. So the rest of 2020 expect to have that and then as far as the new construction activity goes, new construction takes so long to finish a home. That I don’t think You can, you know, count on the builder supply to be hitting the market at any certain point here and really rescue us. Because in Washington, it is so brutal to get a home to the point where you could actually sell it, developing the land, getting a building permit, all of that stuff literally can take years.

And so to say, okay, yeah builders you need to get going. The supply side of new construction is super inelastic, meaning it doesn’t match up with the demand for buyers ever. It’s like builders just got to take a stab at what buyer demand is going to be. And that’s what they do. And they can’t really navigate from that, because it takes so long to get new construction, whole housing through the process. And that’s always been the way it has. It’s been the new construction in elasticity. But now I think you’re having a real spotlight put on that because everybody’s going let’s build some more homes. Doesn’t happen. Not gonna happen. Don’t hold you know don’t hold out for that new construction home you think gonna come on the market? Because when it does, yeah, it’s gonna be a feeding frenzy. Migrating noted activity was showing steady improvement in each passing week and month. The stories I hear continue to be filled with improving outlooks and activity. So we’re cautiously optimistic about what summer will bring. I’m not cautiously optimistic. I’m just flat optimistic.

I think real estate is going to come through this pandemic looking pretty darn strong and it’s because of what I’ve just been harping on for four months now is lack of supply and low-interest rates and you still got buyer demand. No more do you need you had a pandemic it did really slow the market down. The markets going, that’s where we’re at. A lot of people are like, oh, I’m just gonna hold out for a short sale. I’m just gonna hold out for a bank foreclosure. You’re not seeing that not this year, not in 2020. Larsen agreed, saying multiple offers and waived inspections are common as we had another prime seller Season, underwriting requirements have tightened a bit but rates are still very low. Now I’m seeing the opposite with underlying underwriting requirements. I’m seeing those loosen.

We’ve had Dan Chapman from fairway independent mortgage here to interview in previous articles, I have him on every couple of weeks to kind of give you an update of what’s going on on the lending side because that has a lot to do with what buyers can do and what sellers can expect from buyers. And there’s actually been a loosening of credit requirements. We’ve seen their credit scores drop and also we’ve had more jumbo lenders entering the marketplace and the jumbo lending requirements those of us up so, to me, we’re seeing a little bit of a loosening on the underwriting requirements. So commenting on moving forward commenting on Governor Jay Inslee stay home stay healthy order in effect since March. And the more recent safe start proclamation which basically went into effect with phase1. 5 or modified phase one. Northwest MLS director John D. Lee said the challenge was met with new processes and tools to help comply with social distancing and other protocols. Buyers jumped in with both feet to produce and use a new live stream to open house feature released by the MLS in late April, at a dealer, and he’s the principal managing broker at Coldwell Banker Band in Seattle. Buyers could also use virtual tour tours to view homes recorded virtual tours, videos, 3d tours, drone photos, and interactive floor plans.

Yeah, those tools are out there. But I didn’t see those being overwhelming tools that really put buyers over the top. I didn’t really see a lot of brokers looming on to that I think if they had those tools in their arsenal, yeah, they’re using them. We do a free video tour for each one of our listings professionally done with our videographer and added, and then we give that to our brokers and they can put it up in the MLS work. I think a lot of brokers are already doing that maybe they’re adding a 3d tour or something like that. But it’s not been a game-changer, like the media has kind of made it out to play. And for a lot of buyers, I think they’re saying, Yeah, I don’t really need those tools. I just want to go out and look at housing. And so they’ve gone out one on one and that’s where I think so many of the transactions are taking place. It’s not because they can look at this array of tools and go, Oh, wow, I’m gonna go buy that house. Now. I just saw this 3d tour. It was incredible. I just saw some drone photos. They were amazing. Let’s go buy this house. Let’s go. No, I think they’re saying I need to buy a house. Let’s go out and look, I feel comfortable. Now. This is where I’m at. You know you as my broker. Do you feel comfortable taking me out great. You do. All right. Let’s put our gloves on. Let’s put our masks on. Let’s take our you know, hand sanitizer out. Let’s go out there. Let’s stay socially distanced. Then let’s Do this and that’s what I think is happening. So appointments to show properties under the limitations of a broker and one or two others depending on the county where the property is located. They were booked solid from dawn to dusk in many areas.

I haven’t necessarily seen that but I’ve heard of that. Like there’s just you can go online and in the showing time app within the MLS, you can book alright homes, new homes vacant, but you still got to make an appointment and I encourage all the brokers you need to follow the rules still, even though you’ve got people running around the streets willy nilly still got to fall, follow the rules because you’re a professional. And your license is based on you being a professional and following those rules. So even though other people aren’t following the rules, doesn’t mean you should do that. So make an appointment if you are out looking at homes, and it’s so easy to do that online. And that’s what we’re seeing is people making appointments going out doing those appointments and the appointments saved from a big bunch of people in a home and not socially distancing, multiple offers and a competitive environment prevailed through the month of May. We found many sellers accelerated their plans to sell upon hearing the forecast for an extended stay home order. When I read that, I was like, that seems counter-intuitive. But maybe it’s the case. Maybe people just got tired of waiting and they’re like, Okay, this is where we’re at. This is what’s happening. I still want to sell my house this season.

And that’s where I think they are looking around going, man, my neighbor down the street. He got this for his home. Could I get that? Let’s go. Let’s get it on the market. So many buyers war were impacted by layoffs or furlough and had to put their home purchase plans on hold for now. Yeah, maybe. But the buyers that are out there, they seem like they’re pretty cool. Pretty well qualified, the only people that I know had deals blow up or the people who read the very beginning of the onset of the stay home orders. And a lot of those people, those are the people that I see that are on the sidelines. So Alright, let’s keep moving forward. The MLS report shows 10,389 pending sales during May. That’s improving on April’s total of 7207, up 44%, but down about 13. 5% from the year-ago, a total of 12,006. So may better much better than April, but still not as good as a year ago, where we had 13 and a half percent more pending sales. So I think you’re just basically seeing, yep, we’ve got activity, but it’s not as great as it was last year. But for a pandemic. I think if you’re only down 13. 5% from a year ago, we’re We still have a super-strong market that is showing a real recovery. That’s what we’ve got going on here. Real estate is kind of just blasting through. And even though we’re in all these, you know, restrictions, real estates kind of going. So pending sales down 13 and a half percent, that to me, that’s a win. Most of the time when you see downward 13. 5% anything like that’s not good, but I think that’s a win. MLS director Frank Leach he’s the broker and owner of REMAX platinum services and Silverdale, that’s over that’s kind of Southwest said sales are brisk and the 350,000 and below range and sales of 1 million and up are gaining.

Now 1 million and up you’ve got some jumbo lenders in there now. And in the 350,000 and below range that is affordable. Those markets are hot. the tempo of the market seems to be very hot, with buyers trying to take advantage of lower interest rates in both lenders and real estate agents scrambling to meet demand. I’ve had a number of First time home buyers come to me and say what is our strategy here? And depending on where they’re looking, oftentimes I am saying Be patient, because I think what we’re experiencing right now is kind of all the animals being let out of the cages. Oh my gosh, let’s get outside and let’s go do something. Let’s look at home. Let’s go buy a home. I think you’re seeing that initial rush, that initial resurgence of like last Friday for me it was going into my buddy, Dan flinches bar off the rails and ordering a meal and a drink and sitting at a table and doing that. I think you’re going to see a lot of that as people are out doing stuff and real estate is no exception. But there’s been such kind of built-up pent up demand that that’s what we’re seeing is and I think you’ll see this initial surge, and then I think you’ll see it slow down. And so if you’re a first time home buyer and you’re out looking with your broker, I wouldn’t be too worried. I wouldn’t. I wouldn’t take what’s going Right now today and say, this is going to be what it’s like for the rest of the year, I think you will have a slowdown, it’ll still be active. But patience is going to be the key for a lot of brokers.

And a lot of first time home buyers who have maybe haven’t been through this process and haven’t experienced what it’s like to put offers in on 2345 homes and not get them because you’re being beaten out. That is a brutal process to go through. And some people give up but have patience is kind of the bottom line. That that what I’m talking about. So leech believes that this is likely one of the best markets we have ever seen, both in interest rates and affordability. People are betting there will be a bubble burst is going to miss the market. It sounds weird with all of these numbers that we’re talking about affordability. But affordability is only relative to right now today. And relative to a lot of other markets that have a big tech employment sector. Pacific Northwest is pretty cheap. Seattle is pretty cheap. Bellevue is pretty cheap. And so that’s what we’re talking about here is affordability relative to everywhere else. And people are betting there’ll be a bubble burst or going to miss the market. Those are people that I’m having a comment on YouTube videos talking about the bubble bursting and why it’s coming in, you know, gloom and doom always sell but right now I’m trying to objective Li give you you know, my thoughts and where the market sits in the markets pretty hot.

I think we’re in an increasing market as far as pricing goes. And I’ve been saying that for like about three, what are we’re June 8. I’ve been saying that for almost three weeks now is that I think the pricing is going up. And I think you’ll see that in next month’s statistics. So MLS members completed 9000 or 5957 transactions during May, a slight improvement from April’s total of 5866. When compared to a year ago, the number of Close sales at 9153 marked a decline of 35%. So a lot of that has to do with people who are just staying home. People are not putting their homes in the market, your sales volume dropped off a cliff. And we’re still dealing with that. The median price on last month’s close sales was 449,950. Across the MLS coverage area. That compares to a year ago figure a 440,000. An increase of about 2. 3%. It’s pretty good. But again, that has to do with we had prices increase since May of last year, and then they probably dropped a little bit with the pandemic.

That’s what we’re kind of working through. But we’re still up 2. 3% year over year. Five of the 23 counties in the report had year over year price drops. Very County was down 30%. Again, not a lot of volume over there. King County was down 2. 8% Kittitak were down 2. 9% two point 95%, Pacific County Down 12. 8 and San Juan, down 17. 8%. Now again, the markets that had the big moves, those are markets that don’t have a lot of listings don’t have a lot of pending sales don’t have a lot of CO sales just don’t have a lot of homes in general, typically that go through their system. So you have a few sales one way or the other, that can really skew data. The biggest increases were an Okanagan County, where he had an upward price increase of 30. 3% and Grays Harbor county 15. 7%. Again, those are kind of skewed numbers, because you don’t have a lot of sales, you get a couple of big upper-end sales, and you can really take your averages and move them up. So here’s a quote. I don’t think anyone should be surprised at home prices and King County took a breather in May is referring to the 2. 3% drop, said Matthew Gardner. He’s the chief economist at Windermere real estate. Clearly, COVID-19 was the cause for this drop. But I’m confident that this is a temporary situation that will be reversed as King County starts to reopen, and fresher inventory comes to market. I totally agree. There is a bust increase in listings between April and May, combined with pervasively low mortgage rates. Tell me prices will resume their upward trend in the coming months. And I don’t think it’s going to happen in the coming months. I think it’s happening right now.

I think we’re experiencing it right now. And that’s based on the appraisal volume I’m seeing go through, and also bidding wars that I’m hearing and seeing, and we’re having on listings. So here’s another quote. leech said that when Kitsap County moved into phase two, the governor’s reopening plan, the Kitsap, Department of Community Development, processed over 400 permits, which he believes is just the tip of the iceberg. As builders rush to meet consumer demand. builders are now seeing folks who commuted to work looking to purchase homes with an extra Danner office as they anticipate the work from home aspect is here to stay I am kind of mixed on that one. I think most people will go back to their work situations. Maybe they work on a Friday afternoon at home. Maybe they realize that in order to be in traffic, they can get home. They can get stuff done. But I don’t see a huge trend of massive amounts of workers staying home to work at home. And why is that? Why do I feel that way? Because it’s hard to work at home. It is much easier to go into an office, shut your door, or only have your co-workers around you who are also trying to get work done. Y

ou don’t have the dog barking. You don’t have your neighbors doing crazy stuff. You don’t have your kids bugging you, whatever it is the distraction. You don’t have your TV, you don’t have all that stuff laundry, oh my gosh, I need to make something for dinner tonight. And I get that started or should I get my work done. There are all these distractions and so if you’re a distracted person You’re going to be excited to go back to the office. That’s what you’re going to do now, to have a den in your home to have a dedicated workspace. Yep, that makes sense. But I don’t think decisions are being made across the board based on, right. We’ve got this whole stay at home thing, and it’s going to be a thing from now on. I don’t think that’s happening. I think you’re going to see more of a general trend of the home office. And I think you’ve been seeing that for a while anyway, right? With the internet at home, high-speed internet, you can work from home. To me, for a lot of people.

It’s just not convenient unless you’re set up to do that way. And if you are, you’ve probably been doing that for a while. We’ve been working remotely at some properties. We’ve been doing that since 2009. Obviously, it’s doable. And yeah, it’s not that big of a deal. You just got to be set up to do it and kind of get your systems in place. So a Grady also commented on the slight price drop in King County, saying he believes it’s a record selection of reduced activity and luxury home market, the two-plus million dollar market, which disproportionately impacts over price averages. This may be a reflection of a wait and see attitude or just the uncertain times we’re in. So what Mike Grady is talking about is the 2. 3% drop. median home price in King County. He’s saying it’s a reflection of the lack of jumbo financing and I think that is the 2. 3% drop in King County. More so than that this wait and see attitude. Are people just kind of freaking out of the whole Coronavirus thing? I think so many of the homes in King County are dependent upon jumbo financing and that just hasn’t been available.

That that is that’s just that’s a major factor. So Northwest Multiple Listing extends statistics for King County show a correlation of declining sales in the luxury market and the impact of COVID-19 and then the next step to extrapolate that is lack of jumbo financing. That’s the major impact here. And if you look at the numbers in the MLS thing. In May of 2019, we had 101 jumbo properties all sold in May of 2020. We had 38 jumbo properties sold, so and that’s 2 million and above. So we had a drop of 62% of our jumbo property. So home sales 62%, two-thirds of just about two thirds, we had that cut off. That’s a huge number in King County. So that’s what leads me to believe that our prices are across the board are actually increasing even though we saw a decrease of 2. 3% for the month of May 2020. I think that’s being artificially impacted by a certain segment of the marketplace, which is pretty heavy in King County. Over 2 million, a lot of money.

So that is really about it for the Analysis of May 2020. So June seems to be the hot month, usually we’d be kind of tapering down in June, kind of seeing, we would have already had a couple of months of hot activity. But now we are just kind of cranking up. And in Western Washington, we still haven’t had a lot of great weather. I think you’re going to see some great weather here, as we typically do, intermittently throughout June, and then we start, you know, our good weather starts July 5, that’s always the joke, but it’s invariably almost true. And so, along with the hot weather, I think you’re going to see a lot of buyers out, and a lot of sellers are going to be putting their homes on the market. So our real estate market just got shifted into more of the summer months than our historically you know, spring season. So that’s where we’re at that on top of super-low interest rates. A lot of buyer demand out there, no inventory, and this artificially created market where we had, you know, not much activity We’re off to the races. So I think may, you’re going to see some pretty crazy numbers come out next month.