Market Update…

The real estate question du jour seems to be whether or not our local market is approaching “bubble” territory. I’m no fortune teller, but I don’t see it. One of the clearest explanations I’ve seen recently of what’s behind our increasing real estate prices is HERE. Turns out it boils down to simple supply and demand. According to the article, the population of the Seattle area has grown 2.2% over the past year. If you do the math, at this pace 236 people are being added to the local population every day. Since much of the growth is coming from our booming tech sector, lots of these new neighbors are well educated high earners looking for homes in the most popular Seattle and Eastside neighborhoods.

In a nutshell, low inventory + additional high-end buyers = rising prices. And until one or the other changes that’s where we are. Add low interest rates, high rents and lots of international buyers to the equation and, you get the picture.

For you, all of this just means that this remains the best time EVER to sell a home around here. Over the past 90 days in King County the average time on market for a single family home was 23 days and the average selling price was 102% of asking price. That’s the definition of a seller’s market and barring something crazy, properly priced and marketed properties should continue to sell briskly right through the fall.

On the buy side, have no fear! I’ve represented 10 buyers in the past 6 months who have successfully navigated the competitive marketplace and come away with the property they wanted. (Program note: Lori and I have nearly completed the master plan and are under contract on a home in Madison Park that is exactly what we were looking for.) It can be done!