Posted on July 4, 2014
Demand is still torrid in Seattle's hot neighborhoods and this strong demand is likely to continue.
After five months of declining sales activity compared with a year earlier, the number of June sales was up 2 percent annually and the supply of homes for sale increased by almost 6 percent according to a report by the Multiple Listing Service. The larger inventory, though, hasn't lessened competition among buyers in the most sought after areas where there is not enough supply to satisfy demand.
The median price of a home sold in King County has been steadily increasing since February, last month reaching $453,500, a 6 percent increase from a year ago. The steady increase in prices has prompted some sellers to list their homes for sale but King County still had less than a two month supply of homes on the market. A balanced market, favoring neither buyer nor seller, would have a five to six months supply - so the current seller's market rages on.
The lack of available homes in desirable markets such as Capitol Hill, Queen Anne and Ballard has created what brokers call a "quick-action market" and has resulted in multiple offers and very competitive bidding wars. In Seattle, 68 percent of homes are sold within the first 30 days on the market, and in the case of seller's utilizing a delayed offer response strategy when evaluating multiple offers, this market time is often times under a week. The median price of Seattle homes sold in June was $499,000, up almost 9 percent from a year ago.
In other local markets, the Eastside had the highest median home price at $630,000 up 6.5 percent from a year ago. Southwest King County had the lowest median price at $266,500 but led the county's sub-markets in appreciation with an 11 percent rise over the past year. Meanwhile, in Snohomish County, the median price jumped 13.3 percent to $340,000.
(Courtesy: The Seattle Times)