August is often a slower month in the real estate market, with buyers and sellers enjoying vacations and outdoor activities. Not this year.
The Kirkland real estate market continued to improve in August, in statistics published this week by the Nortwest Multiple Listing Service. Single-family home sales were down 7.2% for the month, but increased 16.9% since August 2011. Inventory levels were down to 1.7 months, one of the lowest levels in Western Washington.
This low level of inventory is having an impact on home prices, with the average sold home price increasing 14% from July to $642,000. This level is 9.6% higher than August 2011.
The Kirkland condo market continues to improve as well. August pending sales (contracted but not closed) increased 2.3% from July and were up 25% from August 2011. Inventory levels are low too, registering at 1.6 months. This is a very different story than August 2011, when condo inventory levels were at 6.4 months.
The average condo price was down to $301,000 for August, but was significantly higher than the average price of $176,000 at the begiining of 2012.
The challenge for the market going forward will be the low levels of inventory. Sales may weaken as buyers wait for the right home to come on the market. As prices improve, we should see more sellers listing their homes. The difficulty will be for them to find another home.