2016 Leavenworth home prices remained strong compared to 2015 with continued strong buyer demand and overall low inventory. The median home price in Leavenworth for 2016 was $345,000 which is only trivially lower than 2015 and the average home price is up slightly to $397,000. While home buyers might feel that 2016 Leavenworth home prices were soaring, they actually remained stable. The average home size stayed constant at around 1900 square feet and the price per square foot was similar as well year to year.
The number of sales also remained quite strong with the total number of homes sold in Leavenworth up to 162 which again is on par with the boom years of 2006 and 2007. It’s possible that the number of sales could have been much higher, if buyers had more inventory to choose from. The total number of homes for sale during the year was down 7.5% from 2015.
What will happen to Leavenworth home prices in 2017?
If demand remains high and inventory remains low, it's safe to assume the following might occur.
- Prices for single family homes in Leavenworth will increase. We will likely see more multiple offer scenarios and some bidding wars. Time on market for well priced homes will decrease.
- Demand for building lots will increase. Some buyers frustrated by lack of housing inventory will decide to build homes instead. We saw this beginning to occur in 2016.
- Some sellers and listing agents will overshoot the market by overpricing homes. Some buyers will overpay and some listings will sit on market due to overpricing.
In many markets, home builders respond to a lack of inventory by building new homes and new subdivisions to meet the demand. We have very little spec building in Leavenworth and new construction homes are unlikely to have a large effect on the supply of homes for sale in Leavenworth. Only three homes built in 2015 or 2016 sold on the MLS in 2016, so new construction had almost no effect on 2016 Leavenworth home prices. I expect 2017 will likely be similar.
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* Required Disclaimer NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.