The average listing price of a four-bedroom, two-bathroom home in Washington is $404,638, but check any Eastside city and the price is at least $200,000 more, according to a report from Coldwell Banker released this week. On average, homes on the Eastside have reached pre-recession levels.
The exception would be condo list prices. In Bellevue, the October average list price was $318,133, still lower than the 2008 peak of $335,896.
Bellevue ranks No. 66 in the nation out of 2,722 markets with an average price of $813,484. Mercer Island came in as the most expensive city in Washington, just above Bellevue, with an average list price of $1.06 million. Topping the national list is Newport Beach, California with an average list price of nearly $2.3 million.
In addition to median list prices, Thadine Bak of Bellevue’s Coldwell Banker – Bain said the median closing price for the Eastside is up 9 percent year to date. In October alone, 45 percent of homes closed sold at or above list price.
“We have consistent low inventory and continued high demand,” Bak said. “In October of 2015, we had a supply of inventory of only 1.1 month. If I go back to the 10-year average for the month of October, it would be about 3.6 months. If I look at the Eastside year-over-year, 2015 vs 2014, inventory is down 35% over the same time period.”
Bak said that as a whole the Eastside has definitely reached pre-recession list prices. In October, the median list price for a residential home was $706,257. The previous peak was in 2007 at $665,127. “As an overall Eastside we’ve definitely outperformed our previous peak, but maybe not in every single neighborhood,” Bak said.
Bak said there are a number of factors that go into low supply of homes, such as financial criteria including waiting periods due to loan modifications, and more people moving into the area.
The price and high demand of four-bedroom homes is having an impact on all homes on the Eastside. Bak said her home sellers reported that buyers would be more likely to search in a different neighborhood is they were being priced out of a desired area. She said it would certainly depend on the buyer, but clients were more interested in flexible, lifestyle-driven living space instead of specific neighborhoods.
Bak said that the condition of the house is crucial, and buyers have been smart about spotting homes that are listed above their value.
According to Coldwell Banker’s report, Centralia has the least expensive median home price, clocking in at $181,067.