When It Rains, It Pours

Roger Morris Seattle Realtor

Mid-century home, Seattle, WA

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!

 

 

 

2 thoughts on “When It Rains, It Pours

  1. That is great news for your area. We are not so lucky here in the midwest. In my town, unemployment is still at historic highs (2nd highest in our state) and home values continue to fall because of the high number of foreclosures and unbelievably high real estate taxes. A cute little 3 BR mid century (with full basement) around the corner from me just listed at….are you ready…. $65,000. My home is worth far less than we paid 2 1/2 years ago 😦

  2. Seattle was the last market to get quiet on the economic down turn and projections were that we would be one of the first to rebound. That has been the case. Which hopefully is a good sign for things to come in your neighborhood! We just passed $400K on average for a home in King County. Yes, you read that right. $400K! Our economy is driven by good employment and multiple strong work entities (Boeing, Starbucks, Microsoft, Amazon, health care, etc). The good thing is you have an awesome mid-century home! Hopefully the housing market will rebound when our wave of good luck ripples your way…

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