Washington’s rural communities are growing — and COVID played a role, report says

As many continue to work from home during the pandemic, Washington’s housing markets have become some of the hottest in the country, a new report says.

Sotheby’s released its first-quarter report for Pierce, Snohomish and King counties last week, detailing how competitive the housing markets have been, especially in rural areas.

“The common theme from all my clients is that they’re wanting to live a lifestyle with space, privacy, tranquility and fresh air,” Beth Kovacevich, a real estate broker with Marketplace Sotheby’s International Realty, told McClatchy News. “One buyer said, ‘It feels like our vacation destination when, in fact, this is where we live!’”

Many moving east

“King County remains one of the most competitive real estate markets in the country,” but as people shift their focus to more physical space, privacy and affordability, Snohomish and Pierce counties have seen a rise in demand, and prices have followed, the report said.

“We have a huge demand and no supply and that’s driving prices up,” Kovacevich said. “With the low interest rates, there are just so many people who want to buy right now. We need more inventory.”

The year-over-year median home price in Pierce County ($435,000) rose by 15.1% in the first quarter, Snohomish County’s median price ($565,000) rose by 11.4%, and the median price for King County properties ($741,060) rose by 9%.

Homes in those counties are also selling faster — the median number of days houses are on the market has decreased substantially.

• Pierce: five days on the market, a 44.4% decrease;
• Snohomish: six days on the market, a 62.5% decrease;
• King: six days on the market, a 33.3% decrease.

What’s driving demand?

One of the main drivers for people to move out of the city is the pandemic — with so many working remotely and housing costs continuing to rise, some of those who were once hesitant to live so far from work can afford to buy homes in open spaces.

“We have such a high tech community here in the Seattle area, where they get to enjoy working from home and being with families and living farther out where it’s more affordable,” Kovacevich said. “People are finding out it’s really not that far to get to work and if you work remotely, then that’s even better.”

Some of the hottest markets are in Monroe, Snohomish, Woodinville and Carnation, according to Kovacevich. Some properties in Duvall, a city of about 8,000 in King County, are going for $200,000 to $300,000 above the listing price.

“We’ve never seen anything like it,” Kovacevich said.

Also, rentals are becoming harder to find and even harder to afford as demand in the city and across the region continues to grow, Kovacevich said. Because there have been so many applications, property management companies have been “bidding the prices up,” according to Kovacevich.

While there has been increased interest in the less populated areas, larger cities are still experiencing similar demand.

According to the report:

• Tacoma saw a median sales price of $378,500 last quarter, an increase of 16% from this time last year.

• Bellevue saw a median sales price of $1,060,000 last quarter, an increase of 17.5%.

• Everett saw a median sales price of $472,000 last quarter, an increase of 15.1%.

• Seattle saw a median sales price of $735,000 last quarter, an increase of 6.5%.

Kovacevich estimates the market will continue to be good for sellers in the second quarter. But if you’re looking to sell, list it now, Kovacevich said.

“It’s best to list now before there’s more inventory,” she said.

This story was originally published May 3, 2021 at 4:11 PM with the headline "Washington’s rural communities are growing — and COVID played a role, report says."