Washington state’s housing market showed the continuing effects of high demand in the second quarter of 2017, according to the Washington Center for Real Estate Research at the University of Washington.
The statewide median sales price rose to $337,700 in the second quarter, 6.6 percent higher than the same time period last year. This represents an all-time high for statewide house prices, as well as the highest median price ever recorded in Washington.
More pertinent to the South Sound: House prices in Pierce County rose by 12.1 percent, recording a record high median sale price of $313,200. Records were likewise broken in Thurston County, where homes sold for $289,800, an increase of 8.1 percent, and Kitsap County, up 11.3 percent on a median price of $325,000.
The highest median prices in the state, unsurprisingly, were in King County, where record lows in Seattle inventory pushed homes to $650,800. The lowest median prices were found in Lincoln County at $89,000, with a low number of house sales recorded.
With house prices increasing statewide, one might expect building activity to rise as well. However, the second quarter of 2017 revealed a total of 10,889 building permits recorded, a decrease of 8 percent from same period last year. This suggests that construction capacity is tight and longer development pipelines are making it hard for demand levels to be met in the short term.