Home sales outgained new listings again in October, further squeezing already tight inventory and pushing prices higher. Since new listings traditionally decrease in the fall, that inventory shortage is expected to last until spring. Sellers willing to put their home on the market now can expect plenty of interested buyers, and a highly favorable chance of getting the best possible price for their home.
Home prices on the Eastside took a big leap in October, fueled by record low inventory. The median price of a single-family home sold that month was $768,000, a jump of 15 percent over the same time last year, and the fastest price growth in several months. With the market so strongly favoring sellers, brokers are hopeful more consumers will opt to list their homes.
The amount of inventory in King County fell to levels not seen since the 1990s with just one month of available inventory. With supply falling well behind demand, prices jumped significantly. The median price of a single-family home sold in October jumped 15 percent over a year ago to $550,000.
There is no place where the supply of homes is tighter than Seattle, particularly in areas close to the city center. Just three weeks of inventory has kept this market in solid multiple-offer territory. Prices in October increased accordingly. The median price of a single-family home in Seattle rose 13 percent to $625,000.
Inventory in Snohomish County dropped more than 20 percent from a year ago. With just over a month of available inventory, prices climbed. The median price of a single-family home was up 6 percent over last year to $386,599. Even with that increase, buyers continue to be drawn to the area by home prices that average 30 percent less than King County.
At a time of year when sales traditionally slow down, September saw particularly strong sales growth. Home prices rose yet again compared to the same time last year, but they remain below the peak of several months ago. And inventory, while still low, is at its highest level in two years. The local real estate market continues to be one of the hottest in the country, but there are signs that prices may be rising more slowly than they did in the first half of the year.
Home prices on the Eastside remain very strong. The September median price of $750,000 was a healthy 10 percent increase over last September. Inventory remains very low with just over a month supply of homes. Demand in this sought-after market continues to overwhelm the number of properties available for sale.
Home prices are typically lower in the fall, and that was the case in King County for September. The median price of homes sold in September was $538,000, down from the market peak earlier this summer. That number reflects a 10 percent increase over a year ago, which represents a significantly higher appreciation rate than the national average.
Inventory in Seattle remains very tight, but is up slightly from a year ago. While multiple offers are still common – particularly for entry-priced homes — some agents are reporting fewer offers than in the past. The median price of a single-family home in Seattle was $630,000 in September, an increase of 10 percent over the previous year.
Home prices in Snohomish County climbed 11 percent in September as compared to a year ago. The median price of a home was $395,000, just below the all-time high of $405,000 set in July. The area continues to see an influx of buyers trying to find a more cost-effective option to the comparatively high housing prices in King County.
While homes prices were up by double-digits compared to a year ago, the market frenzy that has affected most of this year is showing some signs of moderating. With the exception of the Eastside, prices for most of the region were down from their peak. Home sales generally outpaced the same period a year ago, but a shortage of inventory continues to tip the advantage in favor of sellers.
Bucking the trend of moderating prices, the Eastside saw the median home price soar 14 percent over last year to a new record high of $769,000. That eclipses the previous peak of $760,000 in May of this year. Very tight inventory in this highly desirable market was reflected in flat sales growth compared to a year ago.
King County saw home prices moderating for the second month in a row. The median price of homes sold in August was $550,000. That represents an increase of 10 percent over last year, but a drop from the high of $570,500 in June.
The median price of a single-family home in Seattle was $625,000 in August. While down from the record high of $666,500 in June, that represents a healthy 9 percent increase over the same time last year. Demand continues to exceed the supply of inventory, particularly for entry-level homes.
Snohomish County’s August median home price of $400,000 was just shy of the record-high of $405,000 set in July. The median price here is $150,000 less than King County, making Snohomish County a more affordable option for buyers willing to trade a longer commute time for lower housing costs.
Home prices are still on the rise compared to a year ago, but there is some indication that prices are moderating. Combine that with an increase in inventory and we may be seeing some relief for buyers. Time will tell whether this is a momentary breather, or if we’re slowly moving to a more balanced market.
Home to the highest concentration of luxury homes in the state, the Eastside continues to be the highest priced region of King County. Median home prices here were up 10 percent over last July to $750,400. That is down from the May peak of $760,000, and virtually unchanged from June. Buyers looking in this desirable market may be seeing the start of easing home prices.
After five months in a row of record-setting prices, King County saw the median price of a single-family home drop slightly from the high of $570,500 in June to $555,000 in July. However, July’s median price was up 14 percent over a year ago. An increase in inventory, accompanied by a slight slowdown in sales, may indicate that the market is settling down from the frenzied pace we’ve experienced so far this year.
Seattle also saw a small decrease in home prices, with the median price of a single-family home dropping from its record $666,500 in June to $650,000 in July. The July number still represents a hefty 13 percent increase year-over-year. Some buyers are looking to the areas of North King County that include Shoreline, Lake Forest Park and Kenmore for a more affordable alternative. Prices there soared 18 percent over last year, but the median price of $505,000 is significantly less than Seattle.
The median home price in Snohomish County topped $400,000 for the first time, setting a record for the third straight month. Prices were up nearly 12 percent over the same time a year ago to $405,000. With prices here about 25 percent less than King County, buyers looking for lower housing costs continue to fuel an environment where multiple offers are common.
House hunters looking for relief from soaring rents continued to snap up homes at a record pace in May. By one analysis, 80 percent of the homes coming on the market in King and Snohomish counties sold within the first 30 days – many within the first week. With a severe lack of inventory in prime buying season, sellers are getting record prices for homes.
EastsideThe Eastside, already the most expensive area in King County, saw home prices set a new record in May. Median home prices on the Eastside were up by over $100,000 compared to last year, reaching an all-time high of $760,000. With just a month of inventory available, most new listings here drew multiple offers. Even with soaring prices, buyers should plan to act quickly and count on navigating multiple offers.
King CountyWith 20 percent fewer homes on the market here than last year, competition among buyers remained fierce. Tight supply and high demand sent prices surging. For the fourth straight month, King County set a new record, with the median price of a single family home sold in May jumping 16 percent over last year to $560,000. The market is in dire need of new homes to ease the inventory crunch.
SeattleSeattle has the 4th fastest growing population in the country. That growth has fueled demand. Seattle trails only Portland on the list of markets with the fastest-growing home prices. A single family home here cost $641,250 in May, an increase of 14 percent over the same time last year. While slightly higher than the median price last month, that figure is down from the peak in February.
Snohomish CountySince the close-in neighborhoods in Seattle and Bellevue have priced out most first-time buyers, they continued to look to Snohomish County as a more affordable option. The median price of a single-family home increased 11 percent over last year to $389,950. That price is slightly above the pre-recession peak in 2007. However, at 30 percent less than the median price in King County, it’s a relative bargain.
The supply of homes for sale in April was up over March, indicating that more sellers are deciding to list their homes. But with less than a month of inventory available in the area, it’s still a seller’s market. While prices were up over last year, the increases aren’t as lofty as they were in the first quarter of this year. Buyers looking for affordable housing continue to push their search outside the more expensive urban cores.
EastsideAt $730,000, the median price of a home on the Eastside was up 11 percent over last year. That figure was down slightly from February and March, suggesting that prices may be moderating. Competition for homes has not moderated. Brokers continue to report homes on the Eastside selling very quickly and often for over asking price.
King CountyAfter breaking records for home prices in February and March, King County reached a new record-high in April. The median price of a single-family home was $540,000, a 12 percent increase over the same time last year. The more affordable areas in the south and north ends of the county saw the greatest increases, with home prices climbing almost 20 percent in these outlying areas.
SeattleSeattle continues to have the tightest inventory of homes in King County. An influx of young, well-paid technology workers has fueled demand for homes close to the city. The median price of a single-family home increased 15 percent over a year ago to $637,250. But like the Eastside, that number was down slightly from February and March.
Snohomish CountySnohomish County posted more moderate price gains than King County. The price of a single-family home increased just 4 percent over last year to $375,000, down from a median of $385,000 last month. With prices here a third less than in King County, some buyers are willing to trade a longer commute for a more affordable home.
The supply of available homes remains at critical levels, with both King and Snohomish counties showing less than a month’s supply of inventory. With demand far outstripping supply, home prices increased by double-digits over last year throughout the Puget Sound area. The red hot market allows sellers to call the shots. Since some sellers are hesitant to put their home on the market for fear they won’t be able to find their next home quickly enough, many are negotiating with buyers to stay in their house for several months after the sale to ease the transition.
EastsideEastside home prices were up 17 percent over last March to $739,440. That price was unchanged from February of this year. Inventory, which traditionally increases in the spring, continued to shrink. With under a month’s supply of properties on the market, homes at every price point are selling quickly and often with multiple offers.
King CountyAfter breaking records in February, home prices hit a new high in March. The median price of a single-family home soared to $531,250, a 21 percent increase over the same time last year. Homes are selling within days, and the area has only several weeks of available inventory. Frustrated buyers are waiting for more sellers to take advantage of the jump in prices and put their home on the market.
SeattleA booming economy has drawn many new residents to the Seattle area. The city has the lowest inventory in the region, and that is reflected in home prices. The median price of a single-family home was up 20 percent over last March to $640,000. That was down slightly from the high of $644,950 in February.
Snohomish CountyAfter posting more moderate gains than King County so far this year, Snohomish County home prices jumped 13 percent over last March. The median price for a single-family home climbed to $385,000. With buyers increasingly looking to the area for more affordable home options, inventory has shrunk to historic lows. Multiple offers are now the norm.
A severe lack of inventory has led home prices to reach an all-time high. With the supply of properties at its lowest level since 2003, the market is in dire need of more homes to meet buyer demand. That is excellent news for those thinking about selling their home. Sellers can expect a quick sale, favorable terms and a historically high sale price. Buyers will need patience and a strategy for competing with multiple offers.
The Eastside, already the most expensive area in King County, saw home prices set a new record in February. The median price soared 20 percent over last year to $739,975. Inventory here is particularly tight, and the area remains a very strong market for sellers. Homes are selling quickly, even at the higher end. A $3.2 million home in Yarrow Point sold last month in just 14 days.
The median price of a single-family home sold in February hit an all-time high of $514,975, a whopping 20 percent increase over the same time last year. The number of homes sold exceeded the number that were listed, depleting inventory at a rate that is unsustainable. For the market to remain healthy, more people need to make the decision to list their homes.
The continued boom in tech company hiring helped propel home prices to peak levels in Seattle. The median price of a single-family home jumped 24 percent over a year ago to $644,950, a new high. Inventory is at critical levels. In the hot Ballard neighborhood there are currently only 17 homes on the market.
Snohomish County remains a haven of affordability for those sticker-shocked by King County prices. The median price for a single-family home sold in February was $359,000, a moderate increase of 9 percent over the same time last year. However, Snohomish County is struggling with the same historic shortage of homes as King County. With less than a month’s supply, experts expect home prices to continue to increase.
A Chinese developer has proposed designs for Bellevue International Plaza. The proposed four-tower project is arguably one of the largest Bellevue has ever seen.
Huge Four-Tower Bellevue Project
According to the Puget Sound Business Journal, Plus Investment USA on Thursday said it has submitted designs to the city for Bellevue International Plaza, which is on the south side of Northeast Eighth Street between the Bravern complex to the east and Symetra Financial Center to the west. Plus Chairman George Liu said he hopes to break ground this fall on the first two of the 40-story towers.
This is just another example of how profitable downtown Bellevue is and how excited foreign investors are in Seattle and the Eastside. Investors from Asia have been buying up millions of dollars of downtown Bellevue property, and now they're starting to develop it. The scope of Plus' project is the clearest sign yet that overseas developers plan to make a huge imprint on Bellevue.
What This Means For You
While the thought of more construction may make you a little woozy, this is all a good sign! Foreign investors are paving the way for the Eastside's growth by creating jobs and making it a desirable place to live. Home values are already on the rise, and with Bellevue's award winning downtown and anticipated growth, it's safe to say that there will be many exciting changes to our area in the years to come.
Read more in the original article from Puget Sound Business Journal.
Record low inventory has placed the area in an extreme seller’s market. 70 percent of homes sell in the first 30 days. With 30 percent less inventory than a year ago, multiple offers are all but guaranteed. If you’re selling, you can name your terms. For those looking to buy, it’s critical to get in touch with me so I can help you arrange for financing and create a strategy for escalation clauses and back-up offers.
The supply of homes on the Eastside has reached a critical point with just one month of available inventory. To put that in perspective, there are currently fewer than 100 single family homes on the market in the City of Bellevue. And 80 percent of those listings are priced above the Eastside median sale price of $697,500. With the median price of a single family home sold in January up 12 percent over a year ago, sellers can count on making excellent gains if they decide to list their home.
Strong population growth fueled by the area’s healthy job market continues to starve the region’s already limited inventory of homes. Depleted inventory resulted in sales that were down nearly 15 percent compared to last January. Not surprising, since inventory was down more than 31 percent. Limited supply pushed single family home prices up 11 percent over a year ago to $490,970. Those shopping for a relative bargain searched outside the city core. The median home price in Southwest King County was $304,103. The median price in Southeast King County was $350,000.
After hitting all-time highs in the past few months, home prices here reached a new peak. The median sale price of a single family home in Seattle rose to $618,450 in January, a whopping 20 percent increase over a year ago. Inventory is razor thin. The Ballard neighborhood has just 20 homes currently for sale. Sellers are solidly in the driver’s seat, and have the luxury of choosing from multiple offers and being able to drive terms to their advantage, whether it’s closing time, amount of earnest money, or other concessions.
Snohomish County outpaced King County for price growth. The sale price for a single family home soared 17 percent over last year to $378,950. Even with that increase, Snohomish County home prices seem reasonable when compared to King County, where the median price is about 30 percent higher. More homebuyers are realizing that a longer commute is an acceptable trade-off to get more home for their money. But with Snohomish County now suffering from the same shortage of inventory as the rest of the region, prices are expected to continue to climb.