Friday, September 6, 2013

Snohomish County Home Prices Soar 16% in August - But Don't Get Too Excited!

Snohomish County posted one of the strongest rise in home prices this year in August - up a whopping 16% year over year.  Does this mean that prices are going to continue rising at this pace?  Are we going back to the "bubble" days when home prices were rising out of control?

The answer to these questions is: not likely.  When we look at the historical statistics over a long period of time, the trend is for sales volumes and home prices to drop off in the fall.  This happens most every year and is a typical cycle.

Typically the market peaks in price and sales volume in August and trends down through the fall and winter months just to pick up again in the spring.

Another market influence is increasing inventory.  Even though the increase has been minimal, it is a reversing trend that will influence supply and demand which is what has been influencing home prices.

Thursday, June 6, 2013

King County Average Home Prices Break Through $500,000 Mark

As we predicted in our October 2012 blog post "Critical Housing Shortage on Horizon in Seattle Could Cause Another Real Estate Bubble", it appears to be coming true.  We forecasted that we would see rapidly rising home prices due to lack of inventory, we have now seen prices rise over 15% for this year.  The average sales price for a home in King County for May was $501,146.

We are also seeing similar price increases in Snohomish County.  The average home price for Snohomish County is now at $326,795 which is a 16% increase over last year.

Until we see an increase in inventory or an increase in interest rates, prices will continue to rise.