The prices of the cheaper homes and fixers in King and Pierce counties have gone up by about $20,000 to $40,000 since January this year, and the prices of the condominiums have gone up by $10,000 to $20,000. To make the matters worse, the inventory of available affordable homes shrunk to almost nothing.
Right now in King County there are a total of 18 houses for sale under $90,000, out of which there are only two that can be financed; one of them is a HUD house in Federal Way for $85,000 + $4,000 in repairs escrow, and another one is an $88,500 in Auburn, which can go Homepath or Conventional - I strongly suggest grabbing it immediately. The remaining 16 houses are fixers in a very bad condition. Six of the 16 are basically dilapidated cabins in Skykomish or Baring. The cheapest cabin in Skykomish is $35,000 cash.
The current listings in Pierce County are as follows: Out of 77 homes that came up in an under $80,000 search only 29 can be financed, the rest are fixers or mobiles in a bad condition. From the 29 financeable houses three are in Ashford near the Mt. Rainier Park entrance, one is $59,000 and two are $68,000 - very affordable but also a bit far from civilization (about 30 or 40 miles to a nearest Walmart and Goodwill stores in Yelm), although, I hear, there is plenty of fish in the nearby river, so you wouldn't starve. There is a nice short sale 3-bedroom house in Tacoma for only $65,000 and there doesn't seem to be anything wrong with it. Then there are 3 fairly nice HUD homes: in Gig Harbor, Tacoma, and Spanaway for $70,000-$72,000
