The McLean Report for July 2104
Welcome to the McLean Report, our monthly, quarterly and annual examination of North Central Washington’s residential real estate market. This report uses market-wide data based on transactions that closed in June 2014 and compares it to closings that took place last month and during the same month last year. Closings typically occur four to six weeks after a contract is signed in the resale market. For that reason, the sales activity discussed trails actual market conditions. This report will also compare pending sales and inventory levels. Pending sales are considered the current indicator of activity and demand and inventory levels represent supply. Data sets are provided by the NCWMLS North Central WA Multiple Listing Service and the NWMLS Northwest Multiple Listing Service. The majority of the markets sales for Wenatchee Valley and Leavenworth are reported from the NCWMLS.
WENATCHEE REAL ESTATE VALLEY CLOSINGS
Following a strong May 2014 for the Wenatchee Valley with 96 residential closings the month of June 2014 finished down at 69 residential closings with average days on market (DOM) of 108. Compared these to sales in June 2013 of 108 closings the Wenatchee Valley market sales continue to decline.
As inventory dropped during in Quarter 1 and Quarter 2 we are starting to see the results with slower sales results. With lower inventory comes a stronger seller’s market. This is shown with DOM Days on market numbers declining meaning homes are selling faster. Additionally homes are selling for closer to LP list price. The SP Sold Price/ OLP Original List Price ratio of 98.31 for June is incredible. Compare SP/OLP of June 2013 of 96.92, seller’s are achieving nearly 1.38% closer to their asking prices. The market has shifted into a seller’s market and buyer’s are responding with stronger offers.
| Sales | DOM | Total Volume | Avg Sold Price | SP/LP | SP/OLP | ||
| June 14 | 69 | 108 | $17,364,196 | $251,655 | 98.27 | 98.31 | |
| May 14 | 96 | 115 | $23,271,750 | $242,414 | 98.25 | 96.47 | |
| June 13 | 108 | 128 | $24,812,344 | $229,743 | 97.55 | 96.92 |
WENATCHEE VALLEY PENDING SALES
Wenatchee Valley pending sales continue to rise. Pending sales are the current indicator of activity meaning the Wenatchee Valley’s demand remains high and continues to increase. As lending guidelines remaining tight, transitioning from pending sales to closing sales is taking longer resulting in more pending sales. With new demand comes less qualified buyers entering the market. In a very active market buyers tend to rush the qualification process on their way to making offers.
As of July 2014 the NCW MLS is reporting 90 pending sales reported in the month of June with an avg. list price of $242,343 and DOM of 47 days. These numbers are consistent with May’s reports of 92 new pending sales. This shows demand remains constant.
WENATCHEE VALLEY INVENTORY
Inventory levels continued to rise in June 2014. As inventory levels increase it will relieve the frustration of many buyers who could not find a home in their price range that meets their criteria.
As of July 1s there were 356 residential listings up from 293 in June. This significant jump in inventory is partly a result of seasonal trends to list in the summer months. The average list price is $322,715 with a DOM days on market of 95.
Wenatchee Valley Inventory Level and Absorption Rates
|
Price Range (Thousands) |
Active Listings |
Avg. No. Sold Per Month |
Month’s Supply Absorption Rate |
Type of Market Buyer’s or Seller’s |
|
$0 – $150 |
56 |
14.3 |
3.91 |
Seller’s |
|
$151 – $200 |
82 |
20.8 |
3.94 |
Seller’s |
|
$201 – $250 |
54 (+6) |
15.9 |
3.39 |
Seller’s |
|
$251 – $300 |
34 (+5) |
7.8 |
4.35 |
Seller’s |
|
$301 – $350 |
34 (+11) |
5.9 |
5.76 |
Balanced |
|
$351 – $400 |
27 (+2) |
4 |
6.75 |
Balanced |
|
$400 – $450 |
18 (0) |
2 |
9 |
Buyer’s |
|
$451 – $500 |
12 (+3) |
1.7 |
7.05 |
Buyer’s |
|
$501 – $550 |
11 (+4) |
.5 |
22 |
Buyer’s |
|
$551 – $600 |
9 (+2) |
.4 |
22.5 |
Buyer’s |
|
$601 – $650 |
2 (-2) |
.6 |
3.33 |
Seller’s |
|
$651 – $700 |
6 (+1) |
.1 |
60 |
Buyer’s |
|
$701 – $800 |
3 (+2) |
.8 |
3.75 |
Seller’s |
|
$801 – $900 |
6 (+2) |
.2 |
30 |
Buyer’s |
|
$900+ |
12 (+1) |
0 |
NA |
NA |
WENATCHEE’S HIGH END HOME SALE OF JUNE 2014
2630 Barnstorm Lane East Wenatchee – SOLD $715,000
The high end home sale of the month was a 4,859 square foot home located on Barnstorm Lane up on Fancher Heights. This home had 4 bedrooms, 2 bonus rooms and 3.25 bathrooms. Built in 2007 on a .97 acre parcel with an attached 3 car garage.
LEAVENWORTH CLOSINGS
June closings dropped again reporting 12 closed sales. This is following a lower closed total then expected in May of 15. Total volume came in at $3,726,016. Compared to June of 2013 of $6,384,350 total volume of sales is nearly half of last year. The positive results of lower sales is that the sold price to original list price ration jumped up to 95.06. DOM days on market dropped to 109. The reason that both DOM and SP/OLP improved is because mostly new listings sold in June. Older listings that were listed in 2013 are having a harder time selling
| Sales | DOM | Total Volume | Avg Sold Price | SP/LP | SP/OLP | ||
| June 14 | 12 | 109 | $3,726,015 | $310,501 | 95.79 | 95.06 | |
| May 14 | 15 | 225 | $4,175,999 | $278,399 | 95.66 | 90.46 | |
| June 13 | 22 | 163 | $6,384,350 | $290,197 | 95.92 | 93.86 |
LEAVENWORTH PENDING SALES
As closed sales dropped, pending sales rose to 34 as of July 1st up from June 1st of 24. This shows us that the Summer market is increasing the demand for homes in Leavenworth.
The average list price of the current pending sales is $355,445 with days on market of 107
LEAVENWORTH INVENTORY
Inventory levels or the current number of residential listings is 161 down 11 from June for the Leavenworth real estate market. The Leavenworth real estate inventory remains high compared to demand however inventory is trending down that may start shift in the coming months from a buyer’s market to a seller’s market in Leavenworth.
Leavenworth Inventory Level and Absorption Rates
|
Price Range (Thousands) |
Active Listings |
Average No. Sold Per Month |
Month’s Supply Absorption Rate |
Type of Market Buyer’s or Seller’s |
|
$0 – $150 |
19 (+1) |
.9 |
21 |
Buyer’s |
|
$151 – $200 |
23 (-1) |
1.2 |
19 |
Buyer’s |
|
$201 – $250 |
22 (+4) |
2 |
11 |
Buyer’s |
|
$251 – $300 |
26 (+5) |
1.9 |
13 |
Buyer’s |
|
$301 – $400 |
29 (-3) |
3.7 |
7.8 |
Balanced |
|
$401 – $500 |
23 (+3) |
1.3 |
17 |
Buyer’s |
|
$501 – $600 |
14 (-1) |
.9 |
14 |
Buyer’s |
|
$601 – $700 |
9 (+2) |
.5 |
18 |
Buyer’s |
|
$701 – $800 |
5 (+1) |
.3 |
16 |
Buyer’s |
|
$801 – $900 |
6 (+1) |
0 |
NA |
|
|
$901 – $1.0 mil |
3 |
0 |
NA |
|
|
$1.0 – $1.3 mil |
2 |
.2 |
10 |
Buyer’s |
|
$1.3 mil+ |
4 (-2) |
.1 |
40 |
Buyer’s |
LEAVENWORTH’S HIGH END HOME SALE OF MAY 2014
10224 Titus Road Leavenworth, WA – SOLD PRICE: $755,000 on 06/30/2014.
3,320 sq. ft. home with a two car garage on 1.34 acres. 3 bedrooms, 1 bonus room and 2.5 bathrooms. Property had swing views in a private area. This home was custom built.