Island County home prices for 2014 were at their highest since 2007, with a median value for single family homes at $264,950.

According to data released by the Northwest Multiple Listing Service, this is an increase of $9,950 since 2013, when the median price in Island County reached $255,000.

The organization and Jennifer Cox, managing broker at South Whidbey’s Windermere Real Estate, report the median selling price for single family homes on the South End was $325,000; for Central Whidbey it was $285,000; and for North Whidbey, $224,900.

Brokers in Island County sold a total of 1,407 single family homes during 2014.

Joe Mosolino, owner of South Whidbey Windermere Real Estate, said that buyers have “far more confidence” now than they have in previous years, in part because of “remarkably low” 4 percent interest rates and a gradually strengthening economy.

However, he said inventory is “critically low” for the 38 agents at South Whidbey Windermere and elsewhere.

From 2013 to 2014, the number of homes for sale on South Whidbey decreased by 12.2 percent.

“If we see prices increase, it will only be because of a lack of inventory,” he said.

When properties have multiple offers, they are more likely to sell at or above listing price.

Though a number of expensive homes sold last year, Mosolino said there were also several more “affordable” homes sold.

Mosolino explained that it is a common misconception that real estate brokers prefer a low inventory because it incites more competitive buyers for each home. He said agents strongly prefer a stable, healthy market.

“We don’t like this lack of inventory and we don’t like the frenzy created by it.”

According to Mosolino, it is the best time for a seller, however.

“We’re actually knocking on doors, asking people if they would sell their home,” he said.

Despite the competitive market, Mosolino clarified that it is still important for potential sellers to price their homes reasonably. Homes that are priced too high are likely to remain on the market for an especially long time, indicating that the home is either unreasonably expensive or damaged in some way.

Mosolino added that sellers often make the mistake of taking their homes off the market during autumn and through the winter holidays. In fact, he said, agents consistently make sales throughout the colder months.

More than 22,000 Northwest Multiple Listing Service brokers completed 77,276 sales across 21 counties in the organization’s region, which encompasses much of Western and Central Washington State. The combined total of these sales was valued at nearly $28 billion for 2014, an increase of 1,759 units sold, or 2.3 percent, compared to 2013. It was a 9.4 percent gain in terms of dollars compared to 2013.

The median price of single family homes and condos across the 21 counties was $285,000 for 2014.

Wanda Grone, Island County treasurer, said that the rise in home prices is indicative of an increased demand, meaning that individuals are moving to Whidbey and Camano. Grone said that this is a positive sign for the county.

“Hopefully it means people will be moving in and spending money, which will generate sales tax revenue,” Grone said.

She added that the increase in the median home price means that property values will eventually rise as well.

Mosolino says homeowners’ property values are solidifying. He and Grone each said, however, that increases in tax assessments will likely not happen for one year to one and a half years. The assessor’s office, they explained, trails behind the current market.

The increase is a continuation of a gradual positive trend which began in 2012, after the statewide housing market burst in 2008.

In 2007, the median home price had hit a record high at $305,000 in Island County. From 2008 onward, median home prices fell annually afterward with the lowest value of $249,900 in 2011. In 2012, the median price rose a tad to $250,000 and increased by another 2 percent in 2013 to $255,000.

King County’s median single family home value remained the highest in the state for 2014 at $440,000 with 24,393 units sold. Nearby San Juan County’s median value for single family homes was $400,000 with 274 units sold; Skagit County’s median price was $235,000 with 1,635 units sold; and Snohomish’s median price was $326,360 with 9,677 units sold.

The number of new listings for single family homes and condominiums for Island County last year was 2,132, a decrease of 1.39 percent from 2,162 in 2013.