Home Prices in Seattle on the Rise

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On the Beach, Ballard - Seattle, WA

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Several U.S. cities experienced a drop in home prices in the first quarter. This is the first time for 15 years. A trade group reported that this proves that the Federal Reserve is winning its campaign to cool off the housing market.

The National Association of Realtors reported that Boston and Cincinnati were among the 16 areas that saw the price drop on sales of existing single-family homes. The report released by the National Association of Realtors excluded the sales of brand-new homes.

However, 60 metropolitan areas, including Seattle-Tacoma-Bellevue, experienced a 2-digit decline. In Seattle, median price for existing single-family homes increased 16.4% from the first quarter of 2005.

In Boston, the median price of a single-family home slipped 1.5 percent to $390,400. The National Association of Realtors said that this breaks the streak that started in 1991. Cincinnati had a decline of 1.4% to $137, 000.

Higher mortgage rates have declined demand after five consecutive years of record home sales. According to the Feds, median prices rose in 143 cities and were unchanged in two.

Home prices are usually compared to the same period a year earlier because the mix of homes sold and the level of demand may change with the seasons. Median price refers to half the homes sold for more, and half sold for less.

By M. Sese
Miami Real Estate