The transition into the fall housing market creates opportunities for homebuyers. Although there are fewer listings than what buyers find during peak summer months, there is also less competition for the available inventory. While the intensity of sales activity is typically lower for new listings in the fall and winter, it appears we are headed toward a more intense winter market than last year. Expect the number of unsold listings will continue to decrease once the winter "clean-up" of inventory begins.

September's housing market was a bit of a roller coaster, up in certain areas and down in others.  Within the four-county Puget Sound region, Pierce County prices rose more than 10% thanks to high demand and low inventory. Buyers continue to be drawn to the area thanks to more affordable housing costs, but this influx is also driving up prices. In King County, prices were down nearly 2.7% while pending sales rose nearly 10%. This tells us there is no shortage of buyers in the Greater Seattle area.



Prices normally start to taper off this time of year, so this isn't a major cause for concern. Within King County, prices rose in four of the six sub-markets; only Seattle (down 3.2%) and Vashon (down almost 28%) reported drops. Home prices have stabilized, creating good opportunities for purchasers. Expect the prices to stay stable through the fall and winter markets.

Continuing to drive the market are new jobs, lifestyle changes, and very low interest rates. FHA mortgages with 3.5% down payments are very popular with first-time homebuyers. Brokers were unable to replenish inventory to match demand as the volume of pending sales (9,785) outpaced new listings (9,435).

Things were a bit different in September, but at this point it's difficult to know if it's an aberration or an actual trend. Far fewer new listings that were added last month compared to a year ago. Area-wide, brokers added 9,435 new listings last month, a decline of 1,023 from the year-ago total (down nearly 9.8%).

It's still a seller's market, and for more than a year we've seen only 1-to-2 months of inventory, to think we may be looking at a 'new normal' in relation to what a balanced market looks like. With the international economy and trade issues continuing to be erratic, and interest rates staying low, these pressures will almost certainly be an influence, yet there's no clear answer to how all of this will play out.

Condominium inventory in Kitsap County rose more than 27% from a year ago, but the selection of single family homes dropped by the same percentage. Several multifamily projects in the county have been submitted or approved, and those homes are expected to be absorbed in the market as soon as they're available.

If millennials want to own houses, the logical first step in the housing ladder is increasingly outside of King and Snohomish counties and further afield along the I-5 corridor. With interest rates near historic lows and employment levels at historic highs, first-time homebuyers are acting while they can to get on the housing ladder, even though that may mean long commutes.