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King County Median Home Price Up 7%

King County Median Home Price Up 7%

According to a recent article in the Seattle Times, King County’s median price of a single-family home was $480,000 for October 2015, which was 7.3% higher than just a year ago. Tight inventory, slow new home construction, and demand are all reasons for the increase in price. in the single-family homes and condo listing market, there were 31% lower inventory than a year ago, the widest gap this year so far, according to the local Northwest Multiple Listing Service. A 5-month supply is a healthy balance, meaning that if no other listings hit the market as of today, it would take 5 months to exhaust the market. Currently, King County is just over 1 month. We haven’t seen these levels since 2010. In Seattle, this figure is less than one month.

What this means for buyers and sellers:

Listings that hit the market are typically gone quickly if priced correctly. Over-pricing is still an issue as some condos have been on the market for several months. Seattle must find the balance but October was the second best on record for sale. Many experts believe it will remain a hot market through the winter as well. New construction is not able to keep up with the demand. For the first 3/4 of 2015 the number of permits is actually down 2% for single family homes yet multi-family home permits is up 39%. The reason? Shortage of land according to many home builders. King County planners feel that there is sufficient supply but home builders see a different perspective. There are simply not enough willing sellers for that land. For instance, in Redmond, there may be 20 people with 5-acres of land that are just not willing to sell. Without this land, single family homes are in short supply and multi-family properties gain higher priority.

People are moving north or south of the Seattle area in order to get the home and price they desire. Median home prices soared in most Seattle suburbs. Snohomish County also saw an increase of over 11% for their median home price running around $365,000; Pierce county was up 10.5% and Kitsap County up 3.4%.

For more information on finding the right single family home or condo in Seattle or surrounding suburbs, please contact Mary Pong today. With her expert research you are sure to find the right property for your needs and budget.