Thursday, November 8, 2007

Are housing prices going down?

As I stated in my earlier post (Is it time to buy?), the average home price in King County has declined slightly (approx. .003%) for each of the last two months. Here are the figures:

Average Sales Price of Homes in King County, 2007
March: $478,728 April: $483,814 May: $493,226 June: $496,258 July: $501,689 August: $504,036 September: $502,381 October: $500,800

You may have noticed a lot of homes with price reductions recently. Most of these reductions are on homes that have been on the market 90 days or more, indicating that they were overpriced from the get-go. Homes coming on the market now (i.e. in the last few weeks) are being listed at more moderate price points, forcing the older listings to reduce their prices in order to be competitive. What remains to be seen is whether or not the more recently listed homes eventually sell for close to their original list price, or end up reducing their prices as well.

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