Western Washington pending home sales mark best December since 2006
David J Edwards
special meaning for 4,399 buyers whose purchase offers were accepted
during December, according to the latest report from Northwest
Multiple Listing Service. That volume of pending sales was up more
than 35 percent from a year ago and marked the best December since
2006.
Brokers say it's a tough market, but point to several indicators for
good activity during this year's first quarter. "The distance seems
great, but the direction is a good one," observed NWMLS director Dick
Beeson.
"With what our agents already have in the pipeline, I'm optimistic
about a positive first quarter," said NWMLS director Meribeth
Hutchings, the broker at Windermere RE/Lake Stevens. "We had a very
strong December and the momentum seems to be there to keep things
moving," she remarked, noting three agents were in the office on New
Year's Eve writing offers.
Shrinking inventory, the extension of the first-time home buyer tax
credit, and favorable interest rates are among factors brokers believe
will sustain activity.
"Affordability has never been better," said Dick Fulton, a past
chairman of the NWMLS board of directors whose career spans more than
two decades. Fulton, the executive vice president at Coldwell Banker
Bain, suggests would-be sellers list their property soon, rather than
wait until spring, to take advantage of favorable conditions. With
inventory much smaller than a year ago, sellers should benefit from
more exposure to a good pool of buyers, he suggests.
Inventory area-wide is down about 15.6 percent from a year ago. At the
end of December, brokers reported 32,152 active listings of single
family homes and condominiums. For the four-county Puget Sound region,
the number of active listings is down more than 18 percent, with
Kitsap County reporting the biggest drop at 25.4 percent.
NWMLS members reported 4,711 closed sales during December, up 54.7
percent from the year-ago total of 3,045 when the holiday slowdown was
compounded by record low temperatures and snow.
The median price for last month's completed transactions, including
single family homes and condominiums, was $265,000. That compares to a
year-ago sales price of $285,000 (down about 7 percent). Compared to
January, prices are down about 2.9 percent.
For single family homes (excluding condominiums), last month's median
sales price was $273,000. Twelve months ago it was $290,000, a
difference of about 5.9 percent. Condo prices have dropped about 14.6
percent, from $263,475 to last month's figure of $225,000.
Dick Beeson, owner/broker of Windermere Commencement Assoc. in Tacoma,
said the market is "chugging along," despite hurdles associated with
the lending market, appraisals and foreclosures. "The hardest part of
the process still remains the uncertainty of the lending market as
banks continue to ratchet up the qualifications and criteria for
borrowers. Appraisals are difficult because even if the value comes in
at the purchase price many lenders do a second review of the appraisal
and find fault with the outcome, therefore creating a problem for
buyers and sellers." He also noted the large volume of foreclosures
has driven down prices – something he believes will persist throughout
much of this year.
Beeson also said he does not expect much sales action as a result of
expanding the tax credit to qualifying repeat buyers because many
owners have little or no equity in the homes to use to move up. "First
time buyers will still lead the charge in sales," he suggests.
Northwest Multiple Listing Service, owned by its member brokers, is
the largest full-service MLS in the Northwest. Its membership includes
more than 24,000 brokers and agents. The organization, based in
Kirkland, currently serves 21 counties in western and central
Washington. Ferry and Clallam counties are now included in the monthly
statistical reports.
Diane Edwards
Marketing Director
Edwards Real Estate Group
Keller Williams Realty Southeast Sound
Phone: 425-636-0296
Fax: 425-902-1899
E-Mail: Di...@EdwardsRealEstateGroup.com
Website: http://www.EdwardsRealEstateGroup.com
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The Edwards Real Estate Group specializes in Residential Real Estate
for buyers and sellers.