Local Market Update – January 2016

2015 closed out the year with home prices hitting new highs, and inventory hitting new lows. The market is tough for buyers who are competing for a dwindling number of homes, but it’s also the greatest seller’s market in recent memory. What’s in store for 2016? Here is what Windermere Chief Economist Matthew Gardner forecasts.

Eastside

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Home prices on the Eastside continued to climb. The Eastside extended its lead as the most expensive market in King County, posting a median home price of $675,000 in December. A strong technology sector here has helped boost demand for a very limited supply of properties. Competition among buyers is fierce at every price point, including luxury homes. Multiple offers are the norm, and cash sales are common. For buyers, a savvy broker can make the difference between an accepted offer or another disappointment.

King County

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King County achieved two milestones in December. The number of homes on the market hit a historic low – the smallest number of active listings since at least 1993. And the median price for a single-family home hit an all-time high of $508,000, surpassing the previous high of $481,000 set in 2007. Those wanting to buy in King County can find more affordable options by heading south. The median home price in Southwest King County was $305,000. The median price in Southeast King County was $349,950.

Seattle

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The hot market in Seattle just keeps getting hotter. High demand has sent prices soaring. The median home price in December hit a new peak of $600,000, an increase of 20 percent over a year ago. Homes here sell within days of coming on the market, often for substantially more than the list price. In December, a 1600 square foot bungalow in the popular Ballard neighborhood sold in eight days for $750,000 – $75,000 over the asking price. With just a few weeks of inventory available, home prices and competition are projected to stay strong.