Are you overpaying for real estate in Seattle? To put our current home prices in perspective, let’s take a look
at some important numbers.
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Are people overpaying for real estate in the Seattle market?
It’s important to keep in mind that every market fluctuates. To give you some perspective on this, I want to go over what’s going on in the current market, as well as the history of home prices in the Seattle area.
You can check out the complete graph in the video above, but basically, median home prices have been on the rise since the ‘80s. Back in 1984, the median home price was $79,950. During the subprime boom in the early ‘00s, the median price point peaked at $481,000. Then the bust came and it dropped to $308,125.
In other words, the first time Seattle had an immediate reduction in the median home price since the mid-80s took place during the recession.
The recession was caused by the lending industry giving loans to people who really shouldn’t have qualified for them. Some of those buyers did not have any money for down payments, so they had no skin in the game and they were buying houses they couldn’t afford.
Our current market is a little different.
At the previous market peak in July of 2007, there were 12,900 homes on the market but we were only selling about 3,400 homes at that time. At our new peak in July of 2017, we had 2,570 homes on the market and sold 4,368 homes.
In other words, even the houses that came on the market sold. We had 4,300 or so sales because even the properties that had been overpriced and failed to sell for the past few months were now fairly priced for the market. The market finally caught up to those prices.
“Formerly overpriced homes are selling now because the market has caught up to those prices.”
Seattle has a strong economy thanks to tech jobs, the health care industry, and our ports. There are qualified buyers in the market who are ready to buy now. That combined with low inventory means that this market will be around for a while.
Experts say that Seattle is one of the top markets in the United States; some experts even say that Seattle is the top market in the United States.
Whether you are buying or selling in this market, we can help you. Be sure to send me your real estate questions too. Remember, if I answer your question with a video, you win a $25 Amazon gift card.
I look forward to hearing from you!