August typically brings a dip in housing activity and this year was no different. Figures comparing July to August show month-to-month drops in new listings, total inventory, pending sales, close sales, and median prices.

August showed a more traditional seasonal pattern with decreased activity as families took end-of summer vacations and made back-to-school preparations. 

Statistics show the volume of new listings added during August, including single family homes and condominiums, declined from both July (down 11.5%) and twelve months ago (down 4.2%). Total inventory for the 26 counties in the report also fell, shrinking about 6.6% from July and nearly 22.6% from a year ago. At month end, there were 7,425 active listings, down from the year-ago total of 9,591.

A dip i n open house traffic overall, although some new listings were overwhelmed with traffic, depending on the area and the price point. We are seeing homes stay on the market slightly longer and more instances of sellers overpricing their properties.

The continued lack of inventory indicates properties will move very quickly if priced reasonably. Even in our current hot market, pricing a property correctly has never been more important. 

Prices showed signs of moderating during August. The median price on the 10,571 sales that closed last month was $579,000, a drop of $10,000 from July. Prices did rise compared to 12 months ago, climbing from $490,000 for an increase of about 18.2%. That year-over-year (YOY) percentage change was the smallest since February when there was a bump-up of about 15%. 

A suggestion of price cooling is in sight. It is said to look at listing prices as a leading indicator of where things are headed. In King County, median list prices dropped from $740,000 in July to $729,000 in August. That would explain why the median sales price also fell modestly month-over-month. This is because we are hitting a price ceiling and that the rabid pace of home price appreciation will continue to cool as we move through the rest of the year.

Figures show the median list price system-wide for single family homes and condos combined, was unchanged, at $605,000, from July to August. The asking price fell from July to August in about half the counties in the report.

Purchasers are continuing to find mortgage interest rates below 3%, providing increased buying power. It is believed that the historic low interest rates coupled with lifestyle changes continue to be market drivers and factors in keeping inventory at historically low levels. 
Figures indicate there was around three weeks of inventory (0.70 months) at the end of August. Clark, King, Kitsap, Lewis, Mason, Pierce, Snohomish, and Thurston counties had only about three weeks of inventory, with Snohomish reporting the smallest supply (0.49 months), about two weeks.