Submitted by John L. Scott Real Estate Redmond

Housing gridlock grips markets close to job centers.

We’re experiencing a gridlock in the Puget Sound housing market. We are virtually sold out of inventory and there’s a pipeline of stalled buyers.

In King County, this housing gridlock situation has resulted in fewer transactions over the last three months compared to the same three months last year. It’s not due to any other reason except that there are not enough homes coming on the market to satisfy pent-up buyer demand. Because of this, we have seen a steady escalation of home prices. For example, this March sales activity for single-family homes is down 10.96 percent from March of 2015, but the median home price is up 20.67 percent. On the Eastside, we have less than one month of inventory and 75 percent of homes are selling within the first 30 days.

Our Redmond real estate market is sizzling. There is still a very high demand with a limited supply of properties. Active listings are down 34.5 percent, sales are down 11.5 percent and homes pending are down 22.2 percent when compared to March of 2015. Over the past 90 days, the median sale price was $645,000 and the average number of offers was eight.

“In today’s market, sellers want to find their next home before they list their current home, but because of the severe inventory shortage it’s hard to win in a multiple offer situation,” said Lennox Scott, chairman and CEO of John L. Scott Real Estate. “Often times, sellers need to sell their current home in order to have the financial resources and the leverage needed to be successful in purchasing their next home. However, they are hesitant to put their home on the market because they fear their home would sell instantly and they might not win their next home. It’s a catch-22 situation.”

“Buyers must be brave and patient and understand how to write a strong, competitive offer with the help of a professional realtor,” says Mona Spencer, managing broker of John L. Scott Real Estate Redmond. “Buyers must understand that they may need to write several offers before securing a property. Sellers, even in this high demand market, must showcase their homes in their best light in order to get top dollar. Professional photography is a must. You rarely get a second chance to make a great first impression.”

Spencer advises buyers to “keep the faith.” This is an exciting time. Interest rates remain historically low which helps with the affordability factor even as prices rise.