Late Summer Gains For Seattle Area Housing Market

neighborhoodThe S&P/Case-Shiller Index numbers for August were released yesterday, and after a July where we saw average home prices decrease by 0.1 percent in the Seattle Metro Area (King, Pierce, and Snohomish counties), prices bounced back and increased by 0.7 percent in August. On a yearly basis, prices in the area grew by 7.6 percent, coming in at number five on the list of cities with the highest yearly gains among the top 20 metro areas in the index.

Though prices in the Seattle are are still four percent below their peak, overall prices are showing steady growth and much of it is coming from a surprising sector of the housing market: condos. Zillow’s Chief Economist Dr. Svenja Gudell said in a statement that in the national market “…a good portion of the overall home price growth we’re seeing, especially in cities, has been driven by strong growth in condominium values, which are currently appreciating more quickly than single-family homes.” He cited condos’ popularity with younger buyers, many of whom live more urban lifestyles, are looking for more affordable housing options than single-family homes. This appears to be true in the Seattle market, as according to statistics from the Northwest Multiple Listing Service, median condo prices in King County were up 19 percent this August over August 2014. The median price for a condo in Seattle was up 32 percent over the same time period to $248,500.

Overall, it appears that the U.S. market is leveling out. Zillow’s Gudell says that “Annual U.S. home value appreciation has stabilized and settled into a nice groove over the past few months, and this relative stability should continue into the foreseeable future.”

If you’re interested in speaking with a real estate expert about Seattle’s market, contact your local agent today.

Real Estate Site Ranks Seattle No. 1 Housing Market

1150 17th Ave E-33. straightened smalljpgReal estate website auction.com has ranked the Seattle area the No. 1 housing market in the country for single-family homes, according to its analysis of home prices, sales data, demand, and economic factors. They point out the combination of strong price growth, at 10.9 percent over the year, and an equally strong increase in sales over the year, at 12.6 percent, as indicators of our market’s overall strength. The Seattle area’s solid job market keeps attracting new residents, and relative affordability compared to other tech hubs such as San Francisco, San Jose, and New York has seen demand continue unabated. Coupled with the fact that it is still 13 percent less expensive to buy rather than rent in Seattle means that everyone is trying to get their piece of the Seattle real estate pie.

Rounding out the top five behind Seattle are three areas in Florida – Fort Lauderdale, Orlando, and Palm Beach County – followed by our little sister to the south, Portland, where prices grew by 9.4 percent over the year.

If you are interested in buying or selling a home in the Seattle area, contact your local real estate agent today!

King County Home Prices Bounce Back in August

1After the median selling price for a single-family home in King County dropped to $485,000 in July, prices bounced back to just a hair under $500,000 in August, representing a 14.4 percent annual gain, and the biggest yearly gain of any month in 2015. Inventory in King County was also up slightly from July, and now stands at 1.36 months’ worth of supply, the most inventory we’ve seen since February, according to statistics from the Northwest Multiple Listing Service. In contrast, median prices within the sub-market of Seattle stayed essentially flat last month, having dropped by just $500 from $575,500 in July to $575,000 in August. However, that is a 15 percent increase over August 2014.

Inventory in Seattle followed King County’s lead and increased by a small increment to .91 month’s supply, up from .74 months’ worth in July. Lack of inventory continues to put pressure on the market in the Puget Sound region, with total listings down 29.7 percent in King County and down 32.7 percent in Seattle since this time last year. “The biggest challenges our buyers face are lack of inventory and the quality of homes to choose from,” MLS director George Moorhead said in a statement. Some believe this continued double-digit price growth combined with lack of available properties is not sustainable and that we may see a slowdown in the market as we enter the fall season, when inventory historically drops by about half.

The area condo market has made great strides over the year, especially in Seattle, where the median price rose from $299,000 in August 2014 to $395,000 this year – a staggering 32 percent. Prices increased more modestly countywide, but still showed strong growth with a 19 percent rise.

If you are interested in buying or selling a home in the Seattle area, contact your local real estate agent today!

Seattle Homes Selling In Average of 8 Days

3804 E Blaine St.Across the U.S., houses are selling at breakneck speed, with homes only surviving on the market for an average of 28 days before being snatched up by eager buyers. Many homes sold even faster than that in May, with approximately 35 percent going into contract within two weeks of hitting the market. But you think that’s fast? The national market has nothing on Seattle, where last month homes sold after a mere 8 days on the market, and almost half sold above list price, according to Redfin. This no doubt is due to extremely low inventory, especially within the Seattle city limits, where there is less than a month’s supply of homes available, not nearly enough to satisfy the high demand for homes in the city.

Despite this increased buying activity, national home prices actually grew at a slower rate this May – up just 1.6 percent over April – compared to the 3 percent rise in prices we saw last May. On a yearly basis, prices across the country are up 6 percent from a year ago. List prices in the Seattle market increased just slightly from April to May (1.4 percent), and the median was $426,000. Year over year, Seattle prices were up 6.5 percent.

As these statistics illustrate, now is a great time to sell your home! If you’re on the fence, contact your local real estate agent to learn more about the selling process.

Median Home Price In Seattle Surpasses 2007 Peak

housing marketIt has finally happened – Seattle’s median home price has officially topped its 2007 peak, the Northwest Multiple Listing Service is reporting. The median price now stands at $543,500, significantly more than the $501,000 peak of 2007, and nearly $80,000 higher than the median in July 2013 of $465,000.

Seattle’s market appears to be recovering by leaps and bounds compared to the national market, where the median price for homes in the top 20 markets is still 18 percent below the the peak set in 2006. J. Lennox Scott, the CEO of John L. Scott Real Estate told The Seattle Times that the major factors boosting our housing market are jobs – Seattle’s unemployment rate is down to 5.8 percent – and interest rates, which are historically low.

Another factor likely playing a part is that inventory remains very limited, and prices are responding in classic supply-and-demand fashion. Bidding wars are erupting for the few homes that are available, pushing prices upward. According to The Seattle Times article, some neighborhoods in Seattle such as Ballard and Green Lake only have a one-month supply of homes listed for sale, in a market where a 4-6-month supply is considered “balanced.” According to data from Redfin, 39 percent of homes in the Seattle Metro area sold for more than the listing price in the second quarter of 2014.

If you are interested in buying or selling a home in the Seattle area, contact your local real estate agent today.