If you are out buying a house to live in, and that house is not a bank owned property or a short sale property, you are likely confused by reports that prices are not up. There have been reports that the market is flat to down, but when you find a house you really like, those reports don’t seem to ring “true”. That is because the information is technically true…but not likely true for YOU if you are one of the 70% of people who are not buying a POS or a “distressed” property.
Truth is that there is a huge variance between median price of a bank owned home ($240,000), a short sale property ($270,000) and a home that is neither a bank owned or short sale property ($426,000).
506 of the 730 single family homes sold in the last couple of weeks were not bank owned or short sale homes, and the price of those is up 6% YOY from $400,000 in May of 2010 to $425,000.
Going back to yearly 2009, that is an 11% increase in home prices, unless you are buying a short sale or bank owned home.
Getting general stats is great, but be sure to have your agent run the stats for your immediate area of interest. The above stats are for King County, but even for the County as a whole, the numbers vary dramatically for distressed property vs non-distressed property. Averaging them together to get a County-wide “median” does no one any good, given the huge variance between the two.
If your experience tells you that home prices are UP vs down…that’s because they are. But only for those nice homes you want to buy that are not short sales or bank-owned homes.
“Spring Bump” is alive and well…and running at the 5% to 7% seasonal variance expected for this time of year. Pretty much fueled by supply and demand factors vs economic “recovery”.
(Required Disclosure – Stats are not published, verified or compiled by The Northwest Multiple Listing Service).