Seattle Market Update – it is a seller’s market – low supply/high demand
In Seattle, year-over-year prices jumped 17.6 percent, from $625,000 to $735,000. On the Eastside, the median price for a single-family home rose 10 percent from a year ago, increasing from $768,000 to $845,000.
Where are prices headed or which factors will dictate market conditions and pricing in the future? For the immediate future, it is our assessment that home values are continuing to increase because the low supply cannot fill the high demand of housing.
For those who are worried that lending standards are again becoming too lenient and fueling the demand, we do not believe that’s the case. We also do not think that there is blind faith or irrational speculation causing extra demand on housing. Plain simple, for now, the continued increases in prices follow the theory of supply and demand.
Whenever there is a limited supply of an item that is in high demand, prices increase. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate. In King County, the supply is less than a month!
We are not sure how buyers and sellers feel about the announcement of a provision in a GOP tax proposal to cap the mortgage interest deduction and how it might affect seller’s decision on selling their property or affect affordability for buyers. According to the proposal, if you purchase a new home (new to you), and your mortgage is greater than $500,000, your interest deduction is being capped. The current mortgage interest deduction cap is 1 million dollars.
13343 3rd Ave NE, Seattle 98125 – 4bd/2.5bth, 2-car carport: Spacious Haller Lake Home – $650,000 – One owner only! Lovingly maintained home. Spacious & updated kitchen. Huge dining area. Hardwoods throughout upper/main floor (under carpet). 3 bedrooms/1.5 baths on one level. Possible MIL/Airbnb with separate walk-in entrance w/ one bed/full bath downstairs. Lovely deck off the kitchen and beautiful mature landscaping. New furnace, newer roof, exterior paint, newer interior doors, new water line. Lots of upgrades. Quiet neighborhood w/ easy access to I-5 & 99 & upcoming Northgate Lightrail. Click here for more information and pictures.
Did we mention it is a seller’s market? We are ready to list your home – let us know if you are thinking of selling.
Quick Winter Tip for Homeowners
Cold weather is here, please remember to disconnect your garden hoses from the house, this is the number one cause of frozen pipes. Cover exterior faucets to insulate them and keep them from freezing.
We’d love to hear from you
Any questions, comments, or feedback? Contact us any time, we’d love to hear from you.
Krisanne and Kerstin