Mar. 2, 2007 - Seattle Area Real Estate Market - 2007

Where is the Real Estate Market going in 2007? 

As you will see from the information below, 75% of the market will still be a SELLER"S MARKET in 2007, based on how the year is opening up so far.  We do not begin to see inventory tipping over into a balanced or buyer's market until we get over $800,000 in price, which only represents about 25% of the housing market, in the area I have chosen to examine.

I am using stats from Bellevue, Redmond and Kirkland on a combined basis to track the active markets.  This Market Subset should represent the best of our Seattle Area Market, and everything else should be evaluated in relation to this market, as we move through 2007.

I eliminated the under $200,000 market, as this price range is fast disappearing with rising prices.  There are only 7 properties of 919 on market ,priced at less than $200,000. 

The below chart clearly defines that the market is moving at a very fast pace since 1/1/07 in the $200,000 to $400,000 price range, with 279 properties in escrow (purple) and 176 sold since the first of this year.  Supply (green area) is no where near high enough to meet the demand for housing in this price range.

A SELLER'S MARKET in the $200,000 to $400,000 price range. 

In the $400,000 to $600,000 price range we are still seeing a seller's market, though not quite as strong as in the under $400,000 market.  Properties are still selling at a faster pace than supply, by a large margin.

A strong opening for 2007 in all markets priced less than $600,000 in Bellevue Redmond and Kirkland.  This is representative of approximately 66% of the housing market in Bellevue, Redmond and Kirkland.

Still slightly tipped to the Seller's Side of the Fence in the $600,000 to $800,000 price range.  But reaching a more balanced position. 

I wouldn't be surprised to see some of the houses for sale (Green Section) dropping out of the $600,000 plus price range and into the $580,000 to $600,000 price range in the next 30 to 60 days.  Especially those that are 2006 carry-forward inventory. 

We don't approach a slight tip to the Buyer's Side of the fence, until we get past $800,000 in price.  While Buyer's might see some advantage to the Supply being higher than the Demand here, this market segment only accounts for about 10% of the market in a year's time. 

If you are buying or selling at $650,000 or less on the Eastside in 2007, market conditions continue to be strong.  The dominant portion of this market is between $200,000 and $600,000...which is by and large "the safer zone" representing 63.6% of all home buyers and sellers in the Bellevue, Kirkland and Redmond markets and the area most likely to rise at 15% to 25% or greater in value by the end of this year.