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Last Update: Tuesday, August 4, 2008

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TODAY'S BUBBLE BUSTER - SEATTLE, WA


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Seattle median home prices continued to power forward in the 1st quarter. This comes despite a slowdown in sales and increased concern about a local market bubble. The price increases have caused declining affordability, yet ratios remain significantly more positive than many other coastal communities. Will Seattle prices move even higher in 2007 or will year finally bring some sanity to the market?

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Nominal Price Activity
Seattle
National
Comment
. Quarterly Appreciation (Q4:2006 – Q1:2007)
2.0%
-1.8%
Good
  Rolling Year Appreciation (Q1:2006 – Q1:2007) 
12.2%
1.7%
Strong
  Last Year Appreciation (2006)
14.5%
5.9%
Strong
  Rolling 5 Year App. (Q1:2002 – Q1:2007)
65.7%
50.1%
Good
  Historical Average Annual Appreciation
8.4%
6.0%
Strong
Real Price Activity
Seattle
National
Comment
. Quarterly Appreciation (Q4:2006 – Q1:2007)
1.2%
-2.5%
Good
  Rolling Year Appreciation (Q1:2006 – Q1:2007) 
9.0%
-1.3%
Strong
  Last Year Appreciation (2006)
11.3%
2.8%
Strong
  Rolling 5 Year App. (Q1:2002 – Q1:2007)
46.0%
32.1%
Good
  Historical Average Annual Appreciation
4.2%
1.8%
Strong
Affordability Activity
Seattle
National
Comment
  Mortgage-Debt-to-Income Ratio* (Q1:2007)
28.6%
21.1%
Unfavorable
  Historical Mortgage-Debt-to-Income Ratio*
21.2%
19.8%
Average


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