As the seasons get chiller, according to Windermere Chief Economist, Matthew Gardner, so are the prices in this market with the median listing prices and sales prices in August even the slightest bit lower than in the month prior. In the most recent local market update, Gardner has even said that he believes “that this is because we are hitting a price ceiling and that the rapid pace of home price appreciation will continue to cool as we move through the rest of the year.”
Home Prices, Trends, & More…
While up by double digits year-over-year, home prices in August did cool off slightly throughout the region as compared to July. The median single-family home in King County last month sold for $850,000, up 14% from a year ago. This is a drop from the record-high $871,000 set in July. Seattle saw the median price rise 6% from the same time last year to $875,000, down from $896,500 the prior month. Home prices on the Eastside were up 24% year-over-year to $1,300,000, a dip from the $1,330,563 median price in July. Snohomish County’s median price jumped 25% from a year ago to $694,900, just shy of July’s median of $700,000.
While a slight softening of home prices may be welcome news for buyers, inventory is still a big problem. King County has under three weeks of available homes for sale. The lack of inventory is especially severe on the Eastside. At the end of August there were just 278 homes for sale in the entire area, 62% fewer than the same time a year ago. And 85% of homes sold in less than two weeks. As companies continue to invest in large office projects on the Eastside, demand for homes is expected to continue to rise. Snohomish County reported the smallest supply of homes of any county in Western Washington, about two weeks. The Puget Sound area as a whole remains well below the four-to-six weeks of inventory that is considered a balanced market, favoring neither buyer nor seller.
An uptick in condo sales indicates that in-city living is on the rise again. In King County, the number of closed sales were up 20% in August compared to a year ago. The median condo price on the Eastside rose 14% to $544,000. The supply there remains tight, with just two weeks of inventory. Seattle offers much more choice, with six weeks of inventory available. Condo prices there dropped slightly year-over-year to $480,000. With Amazon looking to hire 12,500 corporate and tech employees in Seattle, demand for in-city living there is predicted to remain strong. As single-family home prices have soared, condo living remains an affordable option for those wanting to live close to urban centers. The King County median condo price is 46% less than that of a single-family home at &460,000.
What’s happening in your neighborhood?
Whether you are thinking of buying or selling — or just curious — the Kari Haas team or your broker can provide you with the latest data about specific neighborhoods and answer any questions you might have about home prices, financing, and strategies to help you meet your goals.
The charts below provide a brief overview of market activity. Every Monday, Windermere Chief Economist Matthew Gardner provides an update on the US economy and housing market. You can get Matthew’s latest update here.
This post originally appeared on GetTheWReport.com.