Erica: The bad news: Citywide, the median condo price went up $35,000...

Gosh, if I were an editor, the first thing I would qualify is bad news for whom? It's kinda hard to discuss serious, complicated issues like housing affordability if we can't even grasp the slightest bit of perspective.

@1 - if you read the Stranger, odds are that you are younger and not among the upper class (at least not yet), and thus it is indeed bad news for you.

The best way to control the price of housing to *increase the supply* by scaling back zoning limits, so perhaps a 2000-word eulogy for every Capitol Hill bar threatened by development isn't helping the cause of affordability.

You can have plentiful and cheap housing, scarce and expensive housing, or a collapse in the job market. Pick one.

Many young, not upper class people work in the housing industry. Having prices still going up is actually a benefit because it means fewer lay-offs or coporate shut-downs (minus the Sub-Prime mortgage brokers). We have one of the only housing markets in the country that is not doing horrible (or stagnant). While it sucks for people who can't afford a house, it gives incentive for more people to create and sell houses, thus keeps jobs going, and pay increasing.

Eventually the prices will come down, but for now be pleased that we are not suffering from larger unemployment from a rough housing market (Hello California and Florida!)

Time to start building 100-story inexpensive residential rental apartment buildings along major bus lines like Vancouver BC does.

It won't get cheaper by wishing - just ask the folks in South Lake Union - oh, wait, you can't - cause they were all forced out since you wanted to kill off the proposed Seattle Commons.

As predicted, they didn't stay.

Monique let me see if I understand your logic...

The housing market in the rest of the country is quickly falling apart, and around here (median) price is increasing but so is inventory. So, your solution to keep Seattle out of the black hole that the rest of the country has been sucked into is to... continue building housing and bring *more* people (re agents, bankers, construction workers) into the housing market? Wouldn't that just compound problems as things start to unravel around here?

Most people don't realize it yet, but we've already passed the point of no return. The market is due for a major correction and there is no easy or painless way out of it.

I know the hit that is coming, I am just saying for the time being, we should be lucky with where we are at. We have some time to ease up the market, so that crash isnt so hard and there aren't a HUGE amount of lay-offs. Inventory is increasing slightly, but not by as much in previous quarters, so by comparison we are doing better.

I would bet (without caring to look it up) that the increase in inventory (as far as Seattle) is from existing homes, not new construction. Its home owners trying to cash in before prices start dropping. Since we are beind the national curve, many builders have been slowing production for the past 2 quarters so that there is not (and wont be) as much standing inventory in the Washington market (even as we progress through that last 2 quarters of the housing market).

I agree though, the "correction" will happen. I don't think it will be nearly as bad as in other ares since our job market is super hot right now. Just sayin.

I know the hit that is coming, I am just saying for the time being, we should be lucky with where we are at. We have some time to ease up the market, so that crash isnt so hard and there aren't a HUGE amount of lay-offs. Inventory is increasing slightly, but not by as much in previous quarters, so by comparison we are doing better.

I would bet (without caring to look it up) that the increase in inventory (as far as Seattle) is from existing homes, not new construction. Its home owners trying to cash in before prices start dropping. Since we are beind the national curve, many builders have been slowing production for the past 2 quarters so that there is not (and wont be) as much standing inventory in the Washington market (even as we progress through that last 2 quarters of the housing market).

I agree though, the "correction" will happen. I don't think it will be nearly as bad as in other ares since our job market is super hot right now. Just sayin.

I am often curious if sales increase because individual peeps are buying individual condos or are agents buying condos by the handful in hopes of eventually flipping them.

Um, there's no such thing as an inexpensive 100-story building. Inexpensive buildings are, almost by definition, OLD buildings.

You can be a Stranger Reader, a homeowner and NOT WEALTHY all at the same time. I was lucky my partner and I bought a house back in 1999 for 129,000 just outside the city. We scraped and scrounged and did back flips to get in. I hated being so far away from my favorite neighborhoods and outside the city limits. I am an Urbanite.

But 4 years later with a big hunk of equity (~65K) we then bought a cute house (that needed a bunch of work) in a desirable neighborhood for more than 300K. Now, 3 years later we have well over 200K in equity. That will someday translate into our kid’s college fund and/or our retirement nest egg.

Increased property values are good for people who already own b/c it brings middle class access but it sucks for people who have not bought in to the market yet. It also sucks because we are really becoming a City for the rich and poor and no one in between. That's really where it hurts all of us. I want to live in a City with a mix of income levels and a diversity of kinds of people. Affordable Housing is probably the biggest challenge for Seattle. The other is building a great transportation network. The two are inextricably linked.

That's great.

I'm curious, besides Dan and the staff on the business side of the Stranger, how many of the desperately, trying to be uber-hip staffers at The Stranger even own a house in Seattle?

Let's face it, Josh and Erica have done a great job lobbying (urban density!!!) for homeowners to make a killing in this city, especially those living downtown, think they've profited off of their labor?

Monique,

Inventory is up YOY in all categories -- new construction, existing construction, single-family and condominiums. In fact, overall, inventory is growing MUCH faster than sales: the March NWMLS report showed a nearly 40% year-over-year growth in homes for sale.

In other words: things are starting to come apart at the seams.

Regarding those of you who think that the "best way" to control out-of-control housing prices is to deregulate growth, I have a better idea (one that will not please right-wing fruitcakes): pass a law that prevents anyone from financing more than 80% of a given home purchase.

Nothing would bring home prices under control faster than a restriction on easy credit.