Median home prices are up 10-20% across King County. Out of the 29 areas tracked in King County, 23 saw price increases year-over-year. Of those 23 areas, 13 saw increases in the double digits, and areas like Auburn, Shoreline and Redmond went up as much as 20%.
Why are prices going up? One of the reasons is an increase in demand. Many first time home buyers have been sitting on the fence for the last few years, and now that they feel that they missed the bottom 12 months ago, they’re diving in head first.
Where’s all the inventory? Another reason prices may be going up is a lack of decent inventory (supply). Foreclosed homes were a very large segment of last years inventory, but these homes have continued to decline as an overall percentage of the market. As a result, there are less homes for first time home buyers to choose from.
As prices go up, more people will sell, right? In theory yes, but maybe not in practice. Many home owners that bought at the peak, would have to see much more appreciation before they would be in a position to sell. So these underwater home owners may not come to market for several more years.
Is it even worth trying? They are still many opportunities in the market place for first time home buyers, but to be successful in purchasing a home you have to be informed on where the market is at, and where it may be heading. We are seeing many more multiple offer situations and bidding wars, so to be successful you have to write a strong offer.
Don’t get discouraged, get educated! If you’d like to learn more about the King County real estate market, or the home buying process in general, go to our Calendar/Reservations page and sign up for one of our Free First Time Home Buyer workshops.
