It may not feel like Spring this week, but Spring is in full bloom as far as the real estate market is concerned!
The NWMLS figures show that 2/3′rds of last month’s condo sales were in King County where prices jumped 28.6 percent, increasing from $175,000 to $225,000. The price of a single family home that sold in King County increased from $330,000 to $392,000 (up 18.8 %).
The market remains incredibly competitive. One in four buyers are cash buyers, multiple offers vary from community to community but it is common to see multiple offers on all properties, including distressed ones. The inventory in King County is down 42.4% from the same period last year!
Supply and demand is the key to these incredible price appreciation figures. Buyers want to take advantage of new record low interest rates, sellers want to take advantage of the low inventory, thus demanding higher list prices because they know they can get it. The one major issue is the appraisal, where appraised values may or may not be in line with the pumped up offers. In this case, the buyer has to decide how bad they want that house and whether or not they are willing to dig into their own pockets to make up the difference.
Interest rates are hitting new record lows and some predictions are that they will drop below 3%!! But, remember, nothing lasts forever. This perfect storm of good values and incredible interest rates can be here today; gone tomorrow.
Let me know if you are in the market to buy or sell. I have over 23 years experience helping buyers and sellers throughout the greater Seattle area!