In King County, Northwest MLS figures for September show a 20% jump in the number of condos that closed during September compared to a year ago; within the Seattle map areas, closed sales were up more than 34%. (King County currently accounts for about 70% of condo inventory and 60% of condo closed sales.) Condo prices rose more than 8% countywide, with the Southwest and Southeast and North King areas of the county registering the strongest gains at more than 13.5% in all three sub-areas.

Condo prices in nearby counties outgained the rate in King County, as did prices system-wide, which rose 15.7% from a year ago. Kitsap prices spiked 28.5%, Snohomish prices were up 17.8% and Pierce County condo prices jumped about 16.7%.

In addition to noting improvements in the condo sector, migration of buyers to suburban markets is continuing which has resulted in significant year-over-year price growth in areas such as Shoreline, Lake Sammamish, Auburn, Skyway, Woodinville, and Burien. It's likely that buyers are drawn to these areas because housing is more affordable than in the urban neighborhoods closer to Seattle and Bellevue.

According to NWMLS data, a single-family home that sold in King County last month had a median selling price of $825,600, while for condos it was $466,501. This further reflects the affordability crisis in our region as residential buyers are driven to the condo market.

One positive note for buyers is that prices are beginning to level out and the annual trend of the market slowing down as we move into the holidays remains. Buyers should consider staying in the market, if they can, as homeowners who are selling in the last quarter of the year tend to be highly motivated. Buyers will find less competition this time of year due to inclement weather and holiday travel.

Rising concern among sellers over legislation affecting capital gains rates is detected. With legislation in the queue on the national front that could cause an increase in capital gains rates, many sellers who have been on the fence about selling are now concerned they could lose profit in their homes to taxes if they wait. Also noted are some buyers that are backing away from bidding wars, instead choosing to wait for the right property.

The market as described as "brutal and unforgiving for buyers and sellers," with dreams being crushed on all sides. Buyers are swallowing hard and paying prices they curse, while sellers are having to move somewhere they hadn't originally planned - be that good or bad.

While inventory in some NWMLS counties appears to be improving, there are "still slim pickings," which portends escalating prices and fierce competition among buyers.