Western Washington housing market is red hot right now

Washington state’s economy has been in trouble during the pandemic. But the housing market in the Puget Sound area is red hot right now.

Dean Rebhuhn, owner of Village Homes and Properties, joined KUOW’s Angela King to explain.

Angela King: The latest report from the Northwest Multiple Listing Service released Monday spoke of bidding wars across the state.

Dean Rebhuhn: Last night one of our agents wrote a purchase and sale on a home in Marysville. There were six additional offers with escalator clauses that they would bid over the list price and we did not get the sale. We got a notice from the listing agent that they went with another buyer.

King: It sounds like the bidding wars are hopping out there.

Rebhuhn: Especially, on the average price home or median price home, and for first and maybe second-time homebuyers. This was a home in Marysville and people drive to where they could make a mortgage payment, drive to affordability. Six offers on the home and it’s been on the market for five days.

King: The current economic uncertainty surrounding the pandemic is affecting a lot of folks.

Rebhuhn: The pandemic is an interesting situation. The reality of it is in our market area, we're seeing that the pandemic is driving sales. People want to get space. They want to get their piece of whether it's safety, a place where their kids can play and run and do things.

King: So you're talking about kind of this flight to the suburbs and to outlying areas. How are sales outside of Seattle comparing with what you're seeing inside the city?

Rebhuhn: Inside the city, sales are very robust. Outside in the suburban areas and the eastside, where we primarily work, north of Marysville, south to Kent and Auburn, very active multiple offers on the average price, median price houses and not much inventory. And another thing that's driving the market: historically low interest rates, mortgage interest rates are at 3 percent and a little bit higher. Fantastic rate.

King: Any predictions for the rest of the year?

Rebhuhn: It's strange. Now, this is July, it should be slowing down, and I don't see us slow down. I think it's going to be strong throughout the year. As long as interest rates stay down, and we have jobs, the market’s going to be very robust.