Recent statistics in the local media about home prices in King County indicate that the median home price in King County has reached $500,000 – a 10.3% increase over the last peak of $481,000 which occurred in July 2007. We’re also seeing an increase in the amount of new construction (if you haven’t noticed all those cranes, where have you been?!) so we wanted to compare stats between resale homes and new construction homes in the Capitol Hill area to see what the differences or similarities are between these two single family product types. Here’s what we’ve found:
Both types of product are experiencing a sellers markets, however there are some differences. In the resale market, we saw a decrease of 9.6% in inventory from May to June with just 75 properties available for sale in Area 390. The number of resale homes closed in June was down 9.1% over the previous month and down even further to 14.6% over the same month in 2014, which suggests buyers in that market may have started to slow down for the summer. Compare that to the new construction world and we’re seeing something a little different. In June, there were 24 new construction homes available for sale in Capitol Hill, which was up 41.2% over the previous month but down 7.7% compared to the previous year. We also saw 23 new construction homes sell in June, which was up 21.1% over May and up a staggering 53.3% over June of 2014. Basically there just isn’t enough new construction inventory to satiate buyer demand.