The median price for a single family home in King County was up 9% in 2015 to $480,000 from $440,000 in 2014.   The median price in King County in 2007 was $455,000.   One of the primary drivers of this market is lack of inventory.  For example, last week I represented three buyers in bidding wars.  We weren’t the highest bidder in any of them but, we won two of the three (reputation and knowing how to write a strong contract truly makes a difference).  

The one we lost was in Laurelhurst.  My clients offered well over asking and I was told “you weren’t even close.”  For those of you who know Seattle, a teardown in Laurelhurst on a 40’ wide lot with reasonably good lake views now sells for over $900k (that one started at $750k).  

Over the years, I’ve had lots of clients say they “won’t pay more than the listed price.”  In a market like this, it may restrict buyers to only the overpriced listings in the more coveted neighborhoods.  I can tell them I paid $142k over the listed price for a home (see Mr. Brandt's new flip).  It was a great buy – but that was almost 50% more than the listed price.  The listing agent had over 30 offers, so he was definitely just a tad off on his valuation.