Local Market Update – December 2016
Buyers spooked by a spike in mortgage interest rates gave rise to the busiest November for homes sales in over a decade. Prices rose accordingly. Case-Shiller ranked the area as the housing market with the fastest rising prices in the country. Sellers can expect to get a premium for their homes as we move into 2017, but they need to consider how an expected further increase in interest rates may impact the market.
There hasn’t been a stronger seller’s market on the Eastside in recent memory. Record-setting home sales, combined with record-low inventory, has resulted in a significant imbalance of supply and demand. It’s no surprise that home prices surged upward. The median price of a single-family home sold on the Eastside was $759,400, an increase of 13 percent over last November.
Home sales in King County soared nearly 30 percent over a year ago. With frenzied demand gobbling up inventory, most homes received multiple offers. Median home prices here were up 10 percent over the same time last year to $550,000. Brokers expect the market will continue to be extremely active through the winter.
A severe inventory shortage continues to make multiple offers the norm in Seattle. Even the uptick in mortgage interest rates has done little to moderate demand. The median home price here increased to $615,000 in November. If it’s any consolation for buyers facing sticker shock, that was just a 3 percent increase over the same time last year.
Snohomish County experienced the same boost in buying and bust in inventory as the rest of the region. Prices climbed at an even faster rate than in King County. Compared to a year ago, the median price of a single-family home was up over 14 percent to $400,000.
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