Housing prices still strong in Northwest

LONGVIEW, Wash. — Housing-price increases may have slowed in many parts of the country, but in Oregon and Washington the median price through mid-year is still up sharply over last year and looks likely to continue at a strong, though moderating, rate throughout 2006.

Although unit sales are starting to slow a bit along with other parts of the country, Northwest housing prices are remaining relatively strong because of continued regional economic strength, in-migration, and growth management laws and geographic features that limit sprawl, regional-housing experts say.

“What the data is reflecting is still a fairly decent demand for housing,” said Tom Potiowsky, chief economist for the state of Oregon. “The expectation that I can slap a 30 percent increase on a house even though I’ve been in it only a year isn’t going to fly. But a 15 percent increase still isn’t bad.”

Median housing prices in King County, which includes Seattle and Bellevue, increased 16 percent in July, while in Snohomish County, which includes Everett, they were up 18.2 percent. Overall, within the 17-county area covered by the Northwest Multiple Listing Service in Washington, the median price of a house sold increased 15.45 percent in July over last year’s figures.