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According to an analysis by the Seattle Times, increased housing demand is due to low mortgage rates, increased job growth, high work wages, and out-of-state residents who can afford to buy homes. The Seattle Times reports that King County "had 30 percent fewer homes on the market than it did a year ago." However, with limited housing and a high demand, bidding wars ensue, resulting in increased home prices. With a high demand and increase in home prices, many potential homeowners will find themselves outbid for the home of their choice. The result of this demand is that those who cannot afford to purchase homes that have doubled in price in the last few years, will purchase less expensive homes and thus buy out potential homeowners with smaller budgets, increasing overall home prices" (Is the Seattle Housing Market a Bubble?) This statement clearly shows why Seattle has an average $287,817 selling price...
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