North King County Home Prices Continue to Rise As Inventory Stays Low

This post was written by Akiko Oda.

The housing market around Puget Sound remains "extremely competitive" as prices continue to rise in many areas, Northwest Multiple Listing Service (NWMLS) brokers say.

Last month, NWMLS realtors closed sales on 115 homes in North King County, compared with 97 in May 2013 and 95 in June 2012. The year-to-year increase was 20.6 percent.

Meanwhile, prices of homes continue to climb as last month's median sale price in North King County came in at $355,000, compared to $317,000 in May and $319,000 a year ago. That equals an 11-percent year-over-year increase.

OB Jacobi, a member of the board of directors for Northwest Multiple Listing Service, which includes local real estate agents and brokers, said the current market conditions—including rising mortgage rates, tight inventory and declining unemployment—are driving even more buyers into what is already an "extremely competitive housing market."

As a result of improved confidence in the U.S. economy, the interest rates for 2013 reached a new high in mid-June, Jacobi added.

At the same time, realtors said the number of closings may be slowing because of low inventory. There were just 147 active listings in North King County last month, compared to 204 a year ago—a 28-percent decline.

"The recent rise in interest rates has definitely brought more buyers into the market, but the inventory remains so low we have not seen a significant increase in sales," MLS director Diedre Haines said. 

Visit the NWMLS website to read the full press release.

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How would you evaluate the local real estate market? Are any of the new statistics cause for concern? Tell us in the comments section.