April 9, 2013

Prices Spike as Homebuyers Compete for Houses

The latest report from the Northwest Multiple Listing Service database indicates that pending sales topped the number of new listings during March, which mean we are still in a period of low housing inventory. Currently, there is less than a two-month supply of inventory, with only 18,500 active listings in the MLS system at the end of the last month. This is a 25.7 percent drop from this time last year. Counties with the largest declines include Clark, Snohomish and King County (down 42.4 percent)

As a result, all the price ranges are spiking, as potential homebuyers flock to scarce resources. Many homes in Seattle are even meeting or exceeding pre-bubble price levels. As a rule of thumb, whenever we get down to a severe housing shortage, we get double-digit home price appreciation.

The numbers show that year-over-year prices jumped 14.9 percent for the 21 counties in its service area. The median price for last month’s closed sales of single family homes and condominiums (combined) was $258,00, a staggering increase from last year’s median of $225,000 at this same time.

Prices for single family homes increased 14.3 percent, while the median sales price for condos, which accounted for about 12 percent of sales, surged 19.6 percent. Two-thirds of last month’s condo sales were in King County; prices there leaped 28.6 percent, increasing from $175,000 to $225,000. The price of a single family home that sold in King County; prices there leaped 28.6 percent from $330,000 to $392,000, up 18.8 percent.

As Justin Mitchell, a Team Troy buyer’s specialists commented about the current market climate, “In today’s market, it is important for buyers to really understand what they want in a home. If you are not willing to pull the trigger when the right house presents itself, it could be gone when you finally do.” Find the home you are willing to pull the trigger on by conducting one of Team Troy’s custom searches.

Once again, if you are thinking of selling your home, now is an excellent time to put your home on the market. Many buyers are still under the assumption that they have an upper hand in negotiations, but it is just the opposite. If your home is priced right, you can expect multiple offers. Team Troy offers a free home valuation, and you can also use our What’s My Home Worth calculator to get your report. Team Troy provides excellent service for their sellers including flexible commissions, free home staging, and professional HDR photography. For a comprehensive list, check out our sellers page here.


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