Q: I read in a newspaper article recently that there are a lot of million dollar homes for sale on Vashon.

I was surprised! I knew prices were going up but had no idea it had gone so far. The agent they quoted said she had eight or ten million-dollar listings right now. Is that possible? It's probably because of rich Californians coming here, isn't it?

A: That quote had to be an error or you read it wrong. We had only six houses listed and sold for over a million in all of 2005. Those homes were listed by a number of different real estate agents. So far this year two homes have sold for just over a million and five are currently on the market at over a million, each with a different real estate agent. It isn't Californians who are "ruining" Vashon. We have people moving here from all over the country and a large percentage of our sales, I would guess at least a quarter to a third, are people who already live here.

The issue of gentrification on Vashon isn't about million dollar houses. The critical issue is that the bottom of the market, where you can find the most affordable homes, has changed dramatically in the last two years. It's getting very hard to find any home for under $300,000. It's also beginning to be difficult to find a home on acreage or with a view for under $500,000.

The increase in housing prices is certainly not restricted to Vashon or even to the West Coast. We've seen dramatic change all over the country. But in addition to general real estate values climbing, we have to accept the fact that Vashon Island is a "boutique" market. We have very little supply and a growing demand. It isn't even just "outsiders" who want to move here that are pushing our prices upward. Lots of local folks are trying to buy down for retirement, purchasing rental homes for investment, buying homes for aging parents or trying to move up to larger homes as their families grow.