Home prices continued to rise in the Northwest in July, hitting nearly 20% increases in some areas, according to the latest report from Northwest Multiple Listing Service.
Home prices increased an average 9% in the Northwest area in July, according to the report, which covers 23 counties in and around Washington state. However, some counties near high job-growth areas saw even higher increases. King County, for example, saw its median home price jump 18.6% from last year.
Inventory shortages continue to persist, however, the Northwest added slightly more new listings in July than in 2016.
“We should be entering the summer doldrums, but I don’t see that happening,” reported Diedre Haines, Coldwell Banker Bain principal managing broker of South Snohomish County. “Inventory remains low, but prices and demand continue to increase, prompting murmurs of a looming bubble.”
Haines explained there are many mixed feelings about the likelihood of a new bubble. The most recent Case-Shiller results showed housing is not repeating the bubble period.
Northwest MLS added 12,300 new listings in July, just 122 more than July last year, but down from June’s 13,658 listings. At the end of July, there were 15,749 total active listings, down 13.9% from last year’s 18,287 listings. This represents 1.6 months’ supply in the Northwest MLS.
However, despite this low inventory level, pending home sales increased 1.3% from last year’s 11,645 to 11,800 sales this year. In King County, however, where inventory dropped nearly 20%, pending home sales fell about 7.4%.
