NorthweZt Economy in the Tank?

Seattle Times in their Sunday's edition yesterday had the "monthly" housing statistics from the NW Multiple Listing Services. In our small area, the median price for the sales that closed in July had gone up 40.4%, compared to July of last year - over FORTY precent. In real numbers this mean that the median sales price this July was $824,900, compared to "only" $587,475 last year.

OK, the "population" size is small, there was 83 closed sales this July compared to 64 July last year, an increase of just under 30%, nowhere close to anything to draw conclusions for the larger market in general, but it is still an indication that this remains an attractive area, and people are willing to pay top $$$ to live here. 98033 is becoming the new "90210" and as per one definition, I guess we are a "real-estate oasis".

My take is that there is a larger number of larger "Kirkland Boxes" that have been sold this year. This is newer/brand new homes, with their floor area maximized - literally - to the utter limits of what is allowed on a certain lot. Most of these houses are large, with minimal yards and setbacks. I guess people like it that way and pay for the sheer interior space. But are they pretty? Far from!

There is somewhat of a housing slump in large portions of the nation. I have steadfast told everyone over the past years that we (Pacific NorthWest) have been "smarter" in that we have not seen any dramatic price increaes, but instead a slow and steady pace over a longer time. I guess I have to eat my own words this time. Just hope that the crazy increase does not lead to a similar sudden drop. Well, August data will be out in a month. Let's see what comes out then.

BTW, when I say "slow and steady pace", I just noted that the sheer tax assessment of our house has doubled since 2002. Yikes, also means that the tax bill has more than doubled...

For a better view over all of King County, check out the following post. Not as rosy, but far better than the nation as a whole.