Market News • February 3, 2020

Central Washington Real Estate Market Update

by Afshan Adil

The following analysis of the Central Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Employment in Washington State continues to soften; it is currently at an annual growth rate of 1.7%. I believe this is a temporary slowdown and we will see the pace of employment growth improve as we move further into the new year. It’s clear that businesses are continuing to feel the effects of the trade war with China and this is impacting hiring practices. This is, of course, in addition to the issues Boeing currently faces regarding the 737 MAX.

On a seasonally adjusted basis, the counties within Central Washington added 5,116 new jobs over the past 12 months, representing a growth rate of 2.2%. The local unemployment rate rose compared to a year ago from 5.9% to 6.2%, but this is largely due to a 2.6% increase in the civilian labor force.

HOME SALES

In the final quarter of 2019, home sales throughout Central Washington rose 0.6% year-over-year, with a total of 1,229 homes sold.
Sales rose significantly in Douglas and Kittitas counties, which saw increases of 10.2% and 8.5% respectively. Sales rose by a more modest 6.2% in Chelan County. We saw a drop in sales in Yakima and Okanogan counties, though in absolute terms the contraction was only 41 units.
The number of pending home sales — an indicator of future closings — was up 4.1% compared to the third quarter, indicating that closings will likely rise in the first quarter of 2020.
Listing activity in the quarter decreased 7.8% compared to a year ago, but there was a small increase in Yakima County. I remain somewhat hopeful that buyers will see inventory levels rise in the second half of 2020.

HOME PRICES

Year-over-year, the average home price in the region rose 7.7% to $352,643. Price growth continues to trend well above the long-term average, with limited inventory pushing prices higher.
Sale prices were 2.3% lower than in the third quarter of 2019.
Prices rose in all counties contained in this report except Okanogan. Douglas County had significant, double-digit growth compared to the fourth quarter of 2018.
The takeaway from this dataset is that significant home-price growth continued in the quarter, but I expect to see a modest slowdown in the pace of home price appreciation as we move through 2020.

DAYS ON MARKET

The average number of days it took to sell a home dropped three days compared to the fourth quarter of 2018.
The average time it took to sell a home in the region was 68 days, up 10 days compared to the third quarter of 2019.
Three markets contained in this report —Okanogan, Yakima, and Kittitas — saw days-on-market drop from the same quarter in 2018. The balance of the region took slightly longer to sell a home.
Homes again sold fastest in Douglas County, where it took an average of 43 days to sell a home. The greatest drop in the time it took to sell a home was in Okanogan County, where it took 15 fewer days than in the final quarter of 2018.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the final quarter of 2019, I have moved the needle a little more in favor of sellers. Inventory levels remain low, and prices continue their upward trajectory. This, in concert with very favorable mortgage rates, continues to bode well for home sellers.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Living • January 31, 2020

Incorporate Pantone’s Color of 2020 into Your Home

by Meaghan McBoom

Image Source: Pantone

Classic Blue has officially been anointed Pantone’s 2020 “Color of the Year”. Pantone says it picked this color because of its ability to instill calm, confidence, and connection as we cross the threshold into a new decade. A dependable color, Classic Blue is timeless, and enduring, making it a great addition to just about any room in your home.

Here are some ways to add this stunning shade of blue to your home:

Furniture

Image Source: Stacy Zarin Goldberg

Add a splash of color to any room with Classic Blue furniture, such as these dining room chairs, which express a sense of tradition and elegance, as well as unexpected boldness.

Tile Work

Image Source: Stacy Zarin Goldberg

Geometric patterns are all the rage this year, so why not liven up your kitchen backsplash with tiles that incorporate the color of the year? Here’s an example that achieves this through bold, colorful design that doubles as a piece of art.

Cabinets

Image Source: Davonport Kitchen Designers and Remodelers.

If geometric tile isn’t your thing, the are other ways to bring your kitchen to life with this stunning shade of blue. If you’re not in a position to purchase all new cabinets, simply paint your current cabinets for a more affordable update.

Walls

Image Source: Stacy Zarin Goldberg

Whether it’s built-ins, panels, or an accent wall, Classic Blue can make your furniture and décor pop. Consider this color when you paint your living room or bedroom as a way to encourage calm and confidence in your favorite spaces.

Market News • January 30, 2020

Nevada Real Estate Market Update

by Afshan Adil

The following analysis of the greater Las Vegas real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Job growth in the Las Vegas metropolitan area picked up in the fall of 2019 with the addition of 27,100 new jobs over the past 12 months. This represents an annual growth rate of 2.7%. Employment growth is now well above the national average (1.4%) and a pleasant surprise following the poor rate of growth in the middle of the year.

The unemployment rate in the Las Vegas metro area was 3.7%, down from 4.5% a year ago.

HOME SALES

A total of 8,151 homes sold in the final quarter of 2019, an increase of 9.4% compared to the same period a year ago, but 13.5% lower than in the third quarter of the year.
Home sales rose the most in the Summerlin neighborhood. There were double-digit increases in an additional six neighborhoods.
Sales activity was mostly positive. Sales rose in thirteen sub-markets but fell in two. The most significant drop was in the Spring Valley neighborhood, but the drop was only 20 units.
Pending sales rose a significant 17.6% year-over-year but were 19% lower compared to the third quarter of 2019, suggesting that closings in the first quarter of 2020 may be slower than in the final quarter of 2019.

HOME PRICES

Home prices in the area rose 6.1% compared to the fourth quarter of 2018 to an average of $325,668. Prices were up 1.3% compared to the third quarter of 2019.
The rate of home price growth picked up in the final quarter of the year and continues to rise at rates well above most of the nation. Demand appears to be robust and, in concert with very attractive mortgage rates, I anticipate home prices will continue rising through 2020.
Prices rose in all but three sub-markets compared to the same quarter last year. The strongest growth was in the Henderson sub-market, where prices were up 13%.
The takeaway here is that demand for housing remains robust, allowing prices to continue to rise.

DAYS ON MARKET

The average time it took to sell a home in the region rose 11 days compared to the fourth quarter of 2018.
Regionwide, it took an average of 47 days to sell a home in the fourth quarter of 2019, and it took 3 days longer to sell a home than in the third quarter of the year.
Days on market rose in all of the sub-markets compared to a year ago.
As mentioned above, market time rose compared to the fourth quarter of 2018. The greatest increases were seen in the Aliante, Southeast Las Vegas, Summerlin, and Whitney neighborhoods.

CONCLUSIONS

The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Employment growth in Clark County has picked back up and demand for ownership housing is robust. In addition to this, mortgage rates remain at very attractive levels. Given these factors, I anticipate the Las Vegas area will be one of the best performing markets in the Western U.S. in terms of home price growth in 2020. As such, I am moving the needle slightly more in favor of home sellers.

ABOUT MATTHEW GARDNER

Market News • January 29, 2020

Eastern Washington Real Estate Market Update

by Afshan Adil

The following analysis of the Eastern Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

My most recent economic forecast suggests that statewide job growth in 2020 will rise 2.2%, with a total of 76,300 new jobs created. The Eastern Washington market added 17,800 total jobs over the past 12 months, representing an annual growth rate of a very impressive 3.8%. That said, and even as the region added jobs, the unemployment rate rose to 5.2% from 4.9% a year ago. This does not worry me, though, as the county data is not seasonally adjusted, and the areas covered by this report tend to see unemployment rates rise during the winter months. Additionally, the labor force grew by almost 20,000 persons, which likely added to the unemployment rolls.

HOME SALES

Home sales throughout Eastern Washington were up 5.8% compared to the same quarter in 2018, with a total of 3,405 closed sales.
Pending home sales in the region were 1.8% lower than a year ago and 41% lower than in the third quarter of 2019, suggesting that first-quarter closings will likely be lower.
Sales activity dropped in Lincoln and Grant counties, but the total contraction amounted to only 21 fewer sales, so there is nothing to be concerned about.
The average number of homes for sale in the quarter was 22.6% lower than a year ago, suggesting that the market remains very tight. I do not expect any significant increases in listing activity until the second half of 2020.

HOME PRICES

Year-over-year, the average home price in Eastern Washington rose by a significant 12.3% to $297,048. That said, prices were 2.2% lower than in the third quarter.
As mentioned in the previous section, low inventory levels are pervasive and are likely the most significant hurdle to many home buyers. Low inventory continues to put upward pressure on prices.
Prices rose in all of the counties contained in this report, with double-digit gains in all but two counties.
The takeaway is that average home-price growth in Eastern Washington remains well above the long-term average.

DAYS ON MARKET

The average time it took to sell a home in Eastern Washington in the final quarter of 2019 was 48 days.
During the fourth quarter, it took 15 fewer days to sell a home in Eastern Washington than it did a year ago.
Across the region the market was split: it took longer to sell homes in Whitman and Walla Walla counties but days on market dropped in the rest of the region.
It took two days longer to sell a home in the fourth quarter than it did in the third quarter of 2019.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Home sales are up and so are prices, which certainly favors sellers. Mortgage rates remain remarkably competitive and this is allowing buyers to afford more house for their money. Inventory levels are still well below what I would like to see and, therefore, the Eastern Washington housing market remains very tight. As such, I am moving the needle just a little more in favor of home sellers.

ABOUT MATTHEW GARDNER

Market News • January 28, 2020

Colorado Real Estate Market Update

by Afshan Adil

The following analysis of the Metro Denver & Northern Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

Colorado’s economy added 57,100 new non-agricultural jobs over the past 12 months, a growth rate of 2.1%. The pace of job growth has been moderating and I anticipate this trend will continue as we move through 2020. My current forecast is for Colorado to add around 57,000 new jobs in 2020, a growth rate of 2.1%.

In November, the state unemployment rate was 2.6%, down a full percentage point from the same month in 2018. Unemployment rates in all the counties contained in this report were lower than a year ago and it is fair to state that all markets are now at full employment.

HOME SALES

In the final quarter of 2019, 14,279 homes sold, representing an impressive increase of 9.2% compared to the final quarter of 2018. However, sales were 18.7% lower than the third quarter, which I attribute to seasonality. Pending sales — a sign of future closings — dropped 26.7% compared to the third quarter, suggesting that closings in the first quarter of 2019 are likely to come in below current levels.
It is notable that all counties contained in this report saw sales growth compared to the same period a year ago.
Listing activity in the quarter essentially matched the same period in 2018 but the number of homes for sale was 26% lower than in the third quarter of the year. Again, this is a function of seasonality.
Inventory levels are holding steady, and demand for housing continues to be strong. I would certainly like to see inventory levels rise and I remain modestly hopeful that this will be the case, but likely not until the second half of 2020.

HOME PRICES

Home prices continue to trend higher, with the average home price in the region rising 4.3% year-over-year to $473,264.
Interest rates remain at very competitive levels and are likely to stay below 4% through 2020. This will allow prices to continue to rise, though I expect more modest price growth if there is an increase in the number of homes for sale.
Appreciation was strongest in Boulder County, where prices rose 7.4%. Home prices dropped in Clear Creek, Park, and Gilpin counties, but these are small markets so I don’t believe it’s indicative of an ongoing trend.
Affordability remains an issue in many Colorado markets and this will act as a modest headwind to ongoing price growth.

DAYS ON MARKET

The average number of days it took to sell a home in the markets contained in this report rose three days compared to the final quarter of 2018.
The amount of time it took to sell a home rose in all counties other than Clear Creek when compared to the fourth quarter of 2018.
It took an average of 41 days to sell a home in the region, an increase of 11 days compared to the third quarter of this year.
The Colorado housing market is still performing well and the modest increase in the length of time it took to sell a home is not a concern at the present time.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the fourth quarter of 2019, I am leaving the needle at the same level as in the third quarter. Listing activity has not grown, and this has led to higher prices in general. Although market time has risen, the market still favors home sellers.

ABOUT MATTHEW GARDNER

Market News • January 27, 2020

Utah Real Estate Market Update

by Afshan Adil

The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

Utah’s non-agricultural employment growth continues to impress. The addition of 49,500 jobs over the past 12 months represents a solid growth rate of 2.8%. We did see some fairly modest slowing in employment gains earlier in the year, but this appears to have been reversed. My current forecast is for the state to continue to grow its job base, though I anticipate modest slowing in the number of new jobs. With around 41,700 new positions added, we will see employment grow 2.6% in 2020. In November, the state unemployment rate was 2.4%, down from 3.2% a year ago.

HOME SALES

8,768 homes sold in the final quarter of 2019, representing a solid increase of 7% compared to the same period in 2018, but 17% fewer homes traded hands compared to the third quarter of 2019.
Total sales activity rose in all but the very small Morgan County. Year-over-year, sales rose by double digits in three counties, with impressive increases in Wasatch, Summit, and Utah counties.
The number of homes for sale in the final quarter of the year was 14.4% lower than in the same period a year ago and 21.3% lower than the third quarter of 2019. Regular readers may remember that listing activity had been rising, but I am afraid those days are behind us.
Pending sales in the fourth quarter were up 10.7% compared to a year ago but were 24.3% lower than in the third quarter, suggesting that closings in the first quarter of 2020 may drop from current levels.

HOME PRICES

The average home price in the region continued to rise in the fourth quarter, with a year-over-year increase of 9.5% to an average of $403,186. Home prices were 0.4% higher than in the third quarter of 2019.
All counties contained in this report saw price increases compared to the same period a year ago, with impressive gains across the board.
Appreciation was strongest in Wasatch County, where prices were up 11.7% to $681,300.
Home prices continue to appreciate at significant rates. I hope to see some slowing in price growth as we move through 2020, but this will only happen if the supply of homes for sale grows significantly.

DAYS ON MARKET

The average number of days it took to sell a home in the counties covered by this report rose four days compared to a year ago.
Matching the third quarter, homes sold fastest in Davis, Salt Lake, and Weber counties, and slowest in the expensive Summit County. All counties except Summit saw days-on-market rise compared to the fourth quarter of 2018.
During the fourth quarter of the year, it took an average of 57 days to sell a home in the region, up from 45 days in third quarter.
The modest increase in market time is not a concern as there still appears to be significant demand for housing.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the final quarter of 2019, I have moved the needle just a little more in favor of sellers. Inventory levels remain low, even in the face of modestly increasing market time. Prices and closed sales are higher, and these things certainly favor sellers.

ABOUT MATTHEW GARDNER

Design • January 27, 2020

Kick-Starting a Kitchen Remodel

by Meaghan McBoom

Image Source: Canva

Ask a homeowner which room they would most like to improve, and most will point to the kitchen – the starting point for every meal and the heart of the home.

Ask those same people why they don’t move forward with a kitchen remodel, and many will say the project seems so overwhelming they don’t know where to start. If your kitchen needs an upgrade, here are some step-by-step suggestions to get you started.

Gather your thoughts

The steps that follow will all progress much easier if you take time beforehand to form a strong opinion about the desired look and layout of your new kitchen.

Start by reviewing kitchen magazines and photo-heavy kitchen remodeling guides and/or websites. Compiling clippings and printouts in a notebook helps you refine your vision. Clip or print the photos that capture your imagination, add notes, and draw circles and arrows around the things you like most.

Once you have a clearer vision of what you want, search online for better examples and new solutions, if necessary. If you live with a significant other, share your ideas with them and don’t allow yourself to become too committed before getting buy-in from them. Contractors and sales associates will expect a unified front.

Focus on the flow

Another major factor you’ll want to consider is how your new kitchen will be used, and by whom:

Do you want to cook with others?
Do you want family and guests to gather in the space while you cook?
Do you want to serve meals in the kitchen?
Do you want to display your dishware?
Where would you like things stored for maximum efficiency?

Imagine yourself happily cooking and entertaining in your new kitchen, then note the key elements necessary to make those dreams a reality. Having a list of your desired kitchen features and storage needs will help ensure your plan meets your vision.

Determine your budget

According to the annual Remodeling Magazine survey of costs, a “midrange,” “minor” kitchen remodel will cost homeowners living on the West Coast about $23,000. Those same folks can expect to pay about $70,000 for a midrange “major” kitchen remodel. Determine what you can afford before you start work to ensure that your vision is within reach, or to help prioritize what’s most critical.

What to do with the cabinets

Replacing the cabinets is one of the most expensive improvements you can make in a kitchen remodel (typically consuming 20 to 40 percent of the overall budget, according to Architectural Digest).

Consider refacing instead. This can include one of the following: 1) Installing completely new cabinet doors and drawer fronts or 2) installing new wood or laminate veneer over the existing cabinet and drawer fronts or 3) simply refinishing the existing cabinet and drawer fronts.

Shopping for contractors

The contractor you choose will determine much of the cost, the pace of your project, the amount of disruption, the final results, and your level of satisfaction. So be thorough in your search:

Ask friends and family for referrals and advice.
Interview at least three of the leading prospects in-person.
Ask to see samples of past work.
Look for someone who complements your operating style (similar personality and communication style).
Once you’ve narrowed your choice to one or two, ask to speak with a few past clients.

You’ll be tempted to latch onto the first contractor who gets rave reviews from a friend or family member. But remember: You and your project are unique, and it’s worth the time and effort to be rigorous in your search.

Selecting appliances

If you’re planning to replace appliances, here are three factors you’ll want to consider:

Finish – Stainless steel is still the most popular option, but beware: smudges, fingerprints, water spots, and streaks will be obvious. Black stainless steel has a warmer feel and is better at hiding spots.

Extended warranty – According to Consumer Reports, extended warranties are hardly ever worth it because today’s appliances are so reliable. And if something does fail, it’s often less expensive to just pay for the repair.

Unbiased testing and reviews – Before making an appliance purchase, use the information resources available through Consumer Reports.

A final note

Moving walls and extending your home’s foundation are both very expensive options. If your kitchen plans call for these architectural renovations, perhaps you’ve outgrown your home and need something larger (with an already-improved kitchen).

Market News • January 23, 2020

Southern California Real Estate Market Update

by Afshan Adil

The following analysis of the Southern California real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.

ECONOMIC OVERVIEW

The counties covered by this report — Los Angeles, San Diego, San Bernardino, Orange, and Riverside — saw total employment rise 54,500 jobs (+0.5%) year-over-year, an improvement compared to employment growth in the third quarter of 2019. Job growth rose in all but Orange County, which saw a contraction of 8,900 jobs.

The region’s unemployment rate dropped from 3.9% to 3.6% over the past year, with the total number of unemployed persons down 25,900 persons year-over-year. In all, these are reasonable numbers, though employment growth in this region remains lower than in other West Coast states.

HOME SALES

There were 43,915 homes sold in the final quarter of 2019. This was an impressive increase of 10.7% over the same period in 2018, but 10.8% lower than in the third quarter of the year (likely a function of seasonality).
Pending home sales (an indicator of future closings) rose 18.4% compared to a year ago but dropped 17.1% from the third quarter of 2019.
Fourth quarter home sales rose in all counties contained in this report. Of note was a significant increase in Orange County, where over 1,000 more units changed hands than in the final quarter of 2018.
There was an average of 31,380 active listings in the fourth quarter — down 23.3% from a year ago and 20% lower than in the third quarter of the year. The market is tighter than I would like, but there is clearly demand from buyers.

HOME PRICES

Year-over-year, home prices in the region were 4.6% higher. They were 1.3% higher than in the third quarter of 2019.
Affordability concerns persist but buyers in the region still seem able to pay more for housing. That said, I maintain my position that price growth will continue to slow—though remain positive—as we move through 2020.
Home prices were higher in all counties contained in this report, with San Bernardino County holding onto the number one spot for price growth (+8.2%). Los Angeles and Riverside counties also saw significant price gains.
In 2020, I expect home prices will rise and mortgage rates should remain below 4%.

DAYS ON MARKET

The average time it took to sell a home in the region was 45 days, which is 1 day fewer than a year ago, but 3 days more than the third quarter.
Two markets — San Diego and Riverside — saw the time it took to sell a house drop compared to the final quarter of 2018.
Homes in San Diego County continue to sell at a faster rate than other markets in the region. In the final quarter of 2019, it took an average of 32 days to sell a home. This is 3 fewer days than it took a year ago.
Market time dropped compared to a year ago, and I think we may see further contraction as we move into the more buoyant spring sales period.

CONCLUSIONS

The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Inventory levels and affordability concerns persist, but there still appears to be demand from home buyers. Pending sales have risen, which suggests the market still has legs to grow, thanks in no small part to competitive mortgage rates. Given the tight inventory levels and decent demand, I have moved the needle a little more toward sellers.

ABOUT MATTHEW GARDNER

Market News • January 22, 2020

Idaho Real Estate Market Update

by Afshan Adil

The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

The job market in Idaho has picked up again, adding 19,700 new jobs over the past 12 months — an annual growth rate of an impressive 2.7%. That said, growth levels are still off the frenetic pace of 2018.

In November, the state unemployment rate was 2.9%, marginally higher than the 2.8% rate of a year ago. It cannot be disputed that the state remains at full employment. It is also interesting to note that the employment rate remained below 3% even as the labor force rose 2.8%, suggesting that the economy remains very strong and new entrants to the labor force are finding jobs with relative ease.

HOME SALES

5,691 homes were sold during the final quarter of 2019, representing a 3.7% increase compared to the fourth quarter of 2018.
In Northern Idaho, Bonner County experienced a significant increase in sales — up 28.3% over the third quarter of 2018. However, Bonner is a small county so significant swings are not unusual. In Southern Idaho, sales also jumped in Payette County. The declines in total sales in three counties are, again, a function of the small number of transactions that took place in those markets.
Year-over-year sales growth was positive in two Northern Idaho counties and four Southern Idaho counties relative to the same period a year ago.
Pending sales dropped 32.5% over the third quarter of 2019, suggesting that closed sales in the first quarter of 2020 are likely to be lower than current figures.

HOME PRICES

The average home price in the region rose 11.7% year-over-year to $377,011 and sale prices were 2.5% higher than in the third quarter of 2019.
In Northern Idaho, Shoshone County led the market with the strongest annual price growth, but it is worth noting that the other two counties also saw double-digit price appreciation. In Southern Idaho, Boise County home prices leapt by more than 37%, and there were notable increases in Canyon, Gem, and Ada counties.
Year-over-year sales growth was positive in two Northern Idaho counties and four Southern Idaho counties relative to the same period a year ago.
Pending sales dropped 32.5% over the third quarter of 2019, suggesting that closed sales in the first quarter of 2020 are likely to be lower than current figures.

DAYS ON MARKET

It took an average of 117 days to sell a home in Northern Idaho and 60 days in the southern part of the state.
The average number of days it took to sell a home in the region dropped 9 days compared to the fourth quarter of 2018, but it took 11 days longer to sell a home compared to the third quarter of 2019.
In Northern Idaho, days on market rose in Bonner and Kootenai counties, but dropped in Shoshone County. In Southern Idaho, market time dropped in Payette, Gem, Boise, and Blaine counties, but rose in Valley, Canyon, and Ada counties.
Homes sold the fastest in Payette, Canyon, and Ada counties.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Job growth is impressive and, as we all know, economic/job growth drives demand for housing, which continues to bode well for the Idaho market. Price growth remains impressive, but one must wonder how long this rapid trend in price growth can continue.

Even though I do expect to see slower price appreciation at some point in the future, it is unlikely to happen any time soon. As such, it remains staunchly a seller’s market so I have moved the needle a little more in their direction.

ABOUT MATTHEW GARDNER

Market News • January 21, 2020

Western Washington Real Estate Market Update

by Afshan Adil

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Employment in Washington State continues to soften; it is currently at an annual growth rate of 1.7%. I believe that is a temporary slowdown and we will see the pace of employment growth improve as we move further into the new year. It’s clear that businesses are continuing to feel the effects of the trade war with China and this is impacting hiring practices. This is, of course, in addition to the issues that Boeing currently faces regarding the 737 MAX.

In the fourth quarter of 2019 the state unemployment rate was 4.4%, marginally lower than the 4.5% level of a year ago. My most recent economic forecast suggests that statewide job growth in 2020 will rise 2.2%, with a total of 76,300 new jobs created.

HOME SALES

There were 18,322 home sales registered during the final quarter of 2019, representing an impressive increase of 4.7% from the same period in 2018.
Readers may remember that listing activity spiked in the summer of 2018 but could not be sustained, with the average number of listings continuing to fall. Year-over-year, the number of homes for sale in Western Washington dropped 31.7%.
Compared to the fourth quarter of 2018, sales rose in nine counties and dropped in six. The greatest growth was in Whatcom County. San Juan County had significant declines, but this is a very small market which makes it prone to extreme swings.
Pending home sales — a barometer for future closings — dropped 31% between the third and fourth quarters of 2019, suggesting that we may well see a dip in the number of closed sales in the first quarter of 2020.

HOME PRICES

Home price growth in Western Washington spiked during fourth quarter, with average prices 8.3% higher than a year ago. The average sale price in Western Washington was $526,564, 0.7% higher than in the third quarter of 2019.
It’s worth noting that above-average price growth is happening in markets some distance from the primary job centers. I strongly feel this is due to affordability issues, which are forcing buyers farther out.
Compared to the same period a year ago, price growth was strongest in San Juan County, where home prices were up 41.7%. Six additional counties also saw double-digit price increases.
Home prices were higher in every county contained in this report. I expect this trend to continue in 2020, but we may see a softening in the pace of growth in some of the more expensive urban areas.

DAYS ON MARKET

The average number of days it took to sell a home dropped four days compared to the third quarter of 2019.
For the second quarter in a row, Thurston County was the tightest market in Western Washington, with homes taking an average of 29 days to sell. In nine counties, the length of time it took to sell a home dropped compared to the same period a year ago. Market time rose in four counties and two were unchanged.
Across the entire region, it took an average of 47 days to sell a home in the fourth quarter. This was up nine days over the third quarter of this year.
Market time remains below the long-term average across the region, a trend that will likely continue until we see more inventory come to market — possibly as we move through the spring.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The housing market ended the year on a high note, with transactions and prices picking up steam. I believe the uncertainty of 2018 (when we saw significant inventory enter the market) has passed and home buyers are back in the market. Unfortunately, buyers’ desire for more inventory is not being met and I do not see any significant increase in listing activity on the horizon. As such, I have moved the needle more in favor of home sellers.

ABOUT MATTHEW GARDNER