More for-sale signs, but prices still hot

Homebuyers throughout most of Western Washington caught a bit of a break last month, but it wasn't in their wallets.

The number of single-family homes and condominiums for sale grew 18 percent in the 17-county area served by the Northwest Multiple Listing Service, its May sales report released Tuesday said.

Even King County, hard hit this spring by a shortage of for-sale properties, posted an 8.4 percent gain compared with May 2005.

Still, price appreciation hit double digits throughout the region — a sure sign that demand outstripped supply.

Five counties — San Juan, Mason, Cowlitz, Grant and Kittitas — reported price increases of more than 30 percent compared with a year earlier.

In King County, the median price for single-family homes was $427,950 (up 15.5 percent), while the median for condos was $246,500 (up 17.9 percent). Median means half the properties sold for more, half for less.

Snohomish County saw a bigger gain in single-family-home prices but a smaller one with condo prices, which climbed 7 percent.

Historically, May is when more houses come on the market as sellers, particularly those with children, prepare for summer moves.

At the same time, it is also a month when families are distracted by school and sports activities and making summer plans, which can postpone house hunting.

"In all honesty, I think we're seeing a little bit of a slowing down," said Rick Oxford, broker in the North Seattle office of Keller Williams Realty.

"Comparing all our data from a year ago, we're down a little bit," Danforth said. "There are some concerns about the interest rates going up. But it still seems to be a very good market."

Home sales continue to be particularly strong in King County's close-in neighborhoods.

While the number of properties available is up countywide, it's down anywhere from 10 to 30 percent in several neighborhoods.

Among them are Seattle's Madison Park, Capitol Hill, Leschi and Mount Baker. Eastside neighborhoods where listings are down 10 percent or more include Mercer Island, West Bellevue, Juanita, Woodinville and East Bellevue.

"In the Greater Seattle area, half the houses we list get multiple offers," Oxford noted, citing a $399,000 Shoreline home that went on the market earlier this week.

The three-bedroom, two-bath house drew three offers in less than 24 hours.

On Bainbridge Island, Bill Barrow of Deschamps Realty reported a slight increase in available homes. But strong demand, particularly for homes under $650,000, means "we still have a seller's market," Barrow said.

However that doesn't mean sellers can set prices too high, which he says frequently happens in a hot market. "A lot of people see other people getting more money, and they don't want to leave any money on the table," he said.

"But if a house has been on the market for three weeks and hasn't had an offer, it's probably overpriced by 10 percent. If it sells right away, it's probably within 3 percent."

Elizabeth Rhodes: erhodes@seattletimes.com