Kirkland Real Estate Market Loses Steam, But Prices Up

The Kirkland real estate market saw prices increase at the same time as activity levels dropped in July, according to recently-published statistics by the Northwest Mullitple Listing Service.

Average single-family home prices increased 6.6% from June to $565,000 but were down 3.3% from July 2011.  However, the average sales price has continued to rise from its recent low in March 2012.  Pending homes sales activity (homes contracted, not yet closed) was flat at 102 sales for July.  Inventory levels continue to hover around 2.3 months of supply, a seller's market.

The condo market remains strong with pending sales up 4.3% from June and 2.1% from July 2011.  The average sales price of $321,000, lower than the $356,000 in June , but was a considerable 35.6% higher than July 2011.  Condo inventory levels are down to 1.7 months of inventory, which bodes well for future price appreciation in the condo segment.

The challenge facing the market today is relatively low levels of inventory.  Buyers have little choice and are holding back until more options come on the market.  Many prospective sellers have negative equity and can't sell.  As a result, we will probably see a slower sales pace until after Labor Day, with a spike in September and October, and softening again as we approach the holidays.

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Michelle Spohrer is a managing broker with John L. Scott Real Estate focusing on Kirkland and the Eastside. See her Facebook page here.