by Mike Gain
Berkshire Hathaway Real Estate

Locally home prices are continuing to rise at a steady pace and continue to outpace both inflation and wage gains. Seattle is still experiencing historic lows in inventory of homes for sale when measured against the demand. However, the supply and demand fueled by historically low interest rates, a growing economy, improving consumer confidence and consumer finances, continue to push up the numbers of homes selling and the home prices. Also the King Counties jobless rate just dipped to 3.3%; its lowest in seven years. Only five cites saw prices increase at a faster pace than Seattle's, according to Standard & Poor's/Case Shiller home price index. Trulia also ranked Seattle as the sixth fastest-moving housing market in the Country. Locally the average prices of homes listed and sold in May 2015 at Berkshire Hathaway  Northwest Real Estate with offices in King, Pierce and Snohomish Counties were up 8% over May 2014 and are up year to date 13% compared to 2014. Median prices for the entire MLS were up 11% in May with the greatest price increases outside of King, Pierce and Snohomish Counties.

We at Berkshire Hathaway Northwest Real Estate just had the best May closing month in over 5 years with a 19% increase. Our written units were up 12% May 2015 over May 2014. What I find most interesting is that our listings sold in May were up 15% over our listings that sold in May of 2014. With inventory at dangerously low levels the number of our listings that are selling just keep increasing. In this market there really is a need for seller representation from full service real estate companies who know the markets and are experienced to guide sellers to make good decisions when marketing their homes. The job and responsibility of a full service company broker is to assist the seller in getting their home sold for top dollar, in the least amount of time, if that is the sellers goal which is most often the case.

Nationally home sales rose for the fourth month in a row to their highest levels since 2006 and is on its eighths month in a row of annual price increases according to the National Association of Realtors index of signed contracts. All of this bodes well for continued momentum for closings to come in June & July.

This should continue to be a very good year for housing. The National Association of Realtors and the National Association of Home Builders expect to see 2015 continue to improve and expect 2016 to pick up the pace and be an even better year due to the pent-up demand and an economy that will be entering a period of reasonable strength and consistency.

Renters are once again beginning to enter the housing market because they are finding they are better off buying a home today than to continue to pay rent. They are finding their monthly payment to be less than their rent payment for a similar home. They also like the fact that their payment will remain the same. Their own form of rent control is homeownership. They are also finding there are numerous low and no down payment mortgages available at incredibly low interest rent. Anyone who can buy a home today at today's prices with today's low interest rates should do it. In my opinion, prices and monthly payments will never be lower than they are today.