Local prices skyrocket as inventory lags behind intense demand

Low inventory has some Puget Sound home sellers pushing their asking prices higher even though they might find it difficult to find another place to live.

In addition, multiple offers have become common on well-priced new listings, according to John Deely, principal managing broker at Coldwell Banker Bain.

“Some sellers are pushing pricing boundaries and are not seeing the same action as their well-priced competition,” said Deely, a member of the Northwest Multiple Listing Service board of directors.

Deely said disgruntled buyers are dropping out of the market to wait out this cycle only to be replaced by a new wave, or buyers are looking to outlying areas where there is somewhat less competition.

According to March statistics provided by the Northwest MLS, buyers are flooding into the Seattle area, due to abundant job opportunities, low interest rates and skyrocketing rents. The median price for Seattle area single-family homes and condominiums was $489,950, up 17.7 percent ($416,000) from a year ago. The median single-family home in Seattle hit $535,000, up 18.8 percent ($450,000) from March of 2014.

The volume of new listings (10,505) added during the month increased 9.4 percent compared to a year ago, but fell short of satisfying demand in many areas. At month end, inventory in the MLS service area that encompasses 23 counties was down almost 14 percent, dropping from 19,736 listings to 17,007. Twelve counties reported double-digit declines from this time a year ago.

According to the Northwest MLS, about 2.5 months of inventory is available area-wide. In King County, there is slightly more than 1.3 months of supply and in Snohomish County supply stands at just under 1.7 months. A normal market would be approximately four times that number.