Mr. Roger is diverting from the usual mid-century topics to share a little story about the Seattle housing forecast.
“When it rains, it pours”: an idiom you often hear in Seattle. Although lately that statement cannot be said about the weather (thank you, sun). It’s the housing market. Buyers are pouring into the Seattle market, but there’s not much to choose from. This “drought” is forcing the median price of King County homes to its highest level since December 2008.
April’s median price for King County homes registered at $400,000, 11.1 percent higher than a year ago. The tight market is causing a number of issues for buyers. First, the lack of inventory. With 3,221 single-family homes for sale in the county (35 percent less than a year ago), our market has a one-month supply of homes. (Typically a good housing market will have a six-month supply.) Second, buyers are thirsty, but bidding wars and cash buyers are driving out many median-range buyers. And third, low appraisals are causing many buyers to add contingencies in their purchase offers. Why the low appraisals? There’s not enough home sales data to accurately provide comparables.
What does this mean for potential sellers? Prepare for the downpour and bring your umbrella! Expect multiple offers and bidding wars, and in many cases, a quick turnaround!