The local real estate market remains very hot with extremely low inventory and prices that are rising faster than anywhere else in the country. However, that rate of price growth appears to be cooling from last year, dropping to its slowest pace in three years. Predictions of more interest rate hikes may further limit price increases. Those considering to sell their home may want to take advantage now of this perfect storm of record-low inventory and record-high prices.
Those looking to buy a home on the Eastside continue to face rising prices and strong competition for limited inventory. With less than a month’s supply of homes, properties here are getting snapped up as soon as they come on the market, and often sell for well over asking price. The median price for homes sold in January climbed 14 percent compared to a year ago to $793,000.
Buyers scrambling to beat increasing interest rates have depleted an already record-low supply of homes. Fewer than 1,600 single-family homes were on the market in King County in January, beating December’s all-time low. The median price of a single family home was up 7 percent over last year to $525,000, but that is the cheapest home prices have been in 11 months. Time will tell whether that price moderation is an anomaly or the continuation of a trend.
After months of robust increases, Seattle home prices slowed down in January. The median price of a single-family home in the city inched up 3 percent over a year ago to $635,000. Some areas of the city even saw small price drops. That should spell good news for buyers, yet razor thin inventory continues to make it a solid seller’s market.
After months of double-digit price increases, Snohomish County may be starting to experience the same market softening as King County. The median price of a single-family home in Snohomish County rose 8 percent as compared to a year ago to $410,000. Tight inventory continues to be a problem. There are 40 percent fewer homes on the market here than the same time last year.
A record low number of houses for sale in December indicates that 2017 will continue to be a very competitive market for buyers. The good news: those who decide to take the plunge and list their home can count on getting a premium price for their property. Brokers reported that about three-fourths of the homes sold in December involved bidding wars.
Strong demand driven by a booming tech economy and great schools continue to strain the already low inventory on the Eastside. It’s not unusual for a well-priced new listing to receive dozens of offers and to sell for well over asking price. With supply failing to meet demand, the median price for homes sold in December soared 19 percent to a new record high of $803,500.
King County had only about 1,600 single-family homes on the market in December, an all-time low. With the healthy regional economy, demand remains very strong. Prices, however, appear to be moderating somewhat. The median price for a single-family home sold in December was $550,000, up 8 percent over a year ago, but unchanged from October and November. A traditional uptick in inventory this spring may help keep price increases more modest this year compared to the double-digit increases seen in 2015.
According to the Case-Shiller home price index, home prices are rising faster in the Seattle metro area than in any other major region in the country. One issue is space. The city’s existing density means that virtually no new single-family homes are being built in Seattle. As new residents flood in, more people are competing for the already tight inventory. As a result, home prices are up. The median cost of a single-family home rose 6 percent from a year ago to $635,000.
While home prices in Snohomish County are well below those of King County, the gap is closing as prices here are increasing at a faster pace than neighboring counties. The median price of a single-family home in Snohomish County rose 12 percent as compared to a year ago to $400,000. Like King County, inventory is very slim, indicating a market heavily favoring sellers.
Buyers spooked by a spike in mortgage interest rates gave rise to the busiest November for homes sales in over a decade. Prices rose accordingly. Case-Shiller ranked the area as the housing market with the fastest rising prices in the country. Sellers can expect to get a premium for their homes as we move into 2017, but they need to consider how an expected further increase in interest rates may impact the market.
There hasn’t been a stronger seller’s market on the Eastside in recent memory. Record-setting home sales, combined with record-low inventory, has resulted in a significant imbalance of supply and demand. It’s no surprise that home prices surged upward. The median price of a single-family home sold on the Eastside was $759,400, an increase of 13 percent over last November.
Home sales in King County soared nearly 30 percent over a year ago. With frenzied demand gobbling up inventory, most homes received multiple offers. Median home prices here were up 10 percent over the same time last year to $550,000. Brokers expect the market will continue to be extremely active through the winter.
A severe inventory shortage continues to make multiple offers the norm in Seattle. Even the uptick in mortgage interest rates has done little to moderate demand. The median home price here increased to $615,000 in November. If it’s any consolation for buyers facing sticker shock, that was just a 3 percent increase over the same time last year.
Snohomish County experienced the same boost in buying and bust in inventory as the rest of the region. Prices climbed at an even faster rate than in King County. Compared to a year ago, the median price of a single-family home was up over 14 percent to $400,000.
The Winter 2016 issue of Windermere Living showcasing residences and destinations from across the West is now available! Windermere Living is the exclusive listings magazine published by Windermere Real Estate.
On Saturday, nearly 300 Windermere Real Estate brokers from six Eastside offices came together for Windermere for Kids. For the 16th occasion, Windermere brokers donated $225 gift cards to over 100 kids from the community.
The morning of the event, each of the over 100 children between the ages of 7 and 12 (a “little shopper”) were given a $225 gift card to Target and partnered with a broker who helps the little shopper select gifts for members of their family. Unbeknownst to the little shopper, a gift for them was also purchased. Gifts were then taken into the mall to six large wrapping stations, each powered by 15 to 20 brokers. The gifts were wrapped, tagged and packaged for the little shopper to take back to their family. While they waited for the gifts to be wrapped, there were Santa pictures, crafts, and food and beverages to keep them busy.
Since 1998, this event has been a favorite for brokers who year after year choose to support Windermere for Kids over having a company holiday party. Together, they helped deliver the holiday spirit to 109 deserving children and their families living on the Eastside. Over the 16 years of this event, Windermere Real Estate/East, Inc. has donated almost $250,000 to families involved in Windermere for Kids.