March Madness Hits Kirkland Real Estate Market

March Madness hit the Kirkland real estate market, and the winners were the lucky buyers who won bidding wars.  Buyers eager to take advantage of low rates and low prices were out in droves last month, as evidenced in the sales statistics just published by the Northwest Multiple Listing Service.

Pending single family home sales (contracted, not yet closed) increased 19.8% over February levels and 19.4% from one year earlier.  Inventory levels are down to 1.9 months based on pended sales, reflecting a seller's market.  Median home prices for sold homes, however, continued to decline and were down to $340,000. 

Kirkland condo sales were strong too, with pending sales up 4.5% from February and 10.3% year-over-year.  Inventory was down to a 2.5 month supply, less than half of the supply one year ago.  Prices were down slightly for the month to $148,000.

As the stock of available homes decrease, home prices are expected to rise.  We see biddiing wars for homes in good condition in the $400,000-$600,000 range, and we are starting to see some homes selling for over their asking price.

The market is expected to see a glut of bank-owned properties this summer, however, which will most likely keep pressure on home prices. If the demand stays high and the bidding wars continue, though, we should start to see home prices rise by the end of the summer and into the last quarter of 2012.

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