The real estate market traditionally cools off in the summer, but August saw a continuation of the market’s hot streak. Home prices increased by double digits over a year ago, fueled by strong demand and the lowest inventory in more than a decade. Rising prices are kindling hopes that more sellers will be willing to put their home on the market.
Home values on the Eastside continue to be the highest in the region. The median price for homes sold in August was up 11 percent to $672,000. Very limited inventory translated into brisk sales as buyers snapped up homes at every price point. A $3.7 million home on Yarrow Point sold in just four days after being listed.
The median price for a single family home in King County was $499,950, a 14 percent increase over last August. Inventory has inched up, but the five weeks of existing supply is far below the three to six months of supply that is considered to be balanced. Condo sales were strong, with 22 percent more sales than a year ago.
Seattle home prices have exceeded their 2007 peak. The median sale price for single family homes sold in Seattle in August was up 15 percent to $575,000. With just three weeks of available inventory, supply just can’t meet demand. Multiple offers and escalation clauses were the rule rather than the exception here.
Buyers frustrated with high home prices in King County have been drawn to Snohomish County in search of finding more home for their dollar. That demand has driven down inventory, which stands at just under two months of supply. Demand has also pushed prices higher. The median price of a single family home rose 11 percent over a year ago to $366,825.