Home prices are being driven up by lack of inventory

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OB Jacobi, the president of Windermere Real Estate, recently indicated that the low level of inventory is creating stiff competition among buyers, thus driving selling prices well above the asking price.

In February, the median sales price of homes was $420,000 in Seattle and $365,000 in King County.  These values are up 15.1% and 18.5%, respectively, since last February, and are up 6.1% and 4.3% since January.

The sale of all homes has increased 15.3% in Seattle and 7.2% in King County since last February, but the amount of homes for sale has decreased 39.9% and 45.3%, respectively.  At this rate it would only take two months to sell all those homes, which is the lowest level of supply since May 2005.

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