Home Sales And Prices Dip For Second Straight Month

Synced from Seattle and Real Estate blog.
The Seattle area saw median home prices and number of home sales fall for the second consecutive month in February, according to new data from the Northwest Multiple Listing Service. The price of single-family homes in King County fell from $410,000 to $405,400 in February, and that there was little growth in the number of homes for sale. The number of pending home sales is also down about 13% from the same month last year. However, the median price of single-family homes in King County is still 11% higher than it was in February 2013.

Members of the NWMLS believe the dip in sales is not due to a shortage of buyers, but a severe shortage of housing inventory. King and Snohomish Counties both have less than a four-month supply of homes available. According to the NWMLS report, bidding wars are common in markets with less than four months of inventory. Some sellers are also delaying selling their homes because they’re underwater on their mortgages and are holding out for a continued rise in home-price appreciation. Zillow reports that one in five homes in the Seattle metro area has a mortgage with an outstanding balance higher than the home’s value.
For more information on Seattle real estate, contact your local real estate agent today.

Home Prices Up 10.6% This Year

Compared to cities tracked in a national index, Seattle home prices rose  faster between February and March than 18 of the 19 other cities that were tracked. The 12 month rise was still within the national average. According the Standard & Poor’s/Case Shiller home price index, Seattle prices rose 3.0 percent for the month and 10.6 percent for the year.
Compared to a year ago, U.S. home prices jumped 10.9 percent in March which was the most since April 2006. More buyers are bidding on a small supply which is driving prices higher, making the market more competitive as well as improving the housing market. Phoenix had the highest annual gain with 22.5 percent followed by San Francisco with 22.2 percent and Las Vegas with 20.6 percent. New York had the smallest annual increase with only 2.6 percent.
Although the market is seeing higher gains, many home owners are not putting their homes on the market which is contributing to home prices rising and encouraging builders to heighten construction. Applications for building permits rose in April making it the highest level in close to 5 years. If you're looking to buy or sell your home, contact your local real estate agent today.