Homes Sold in 13 of 19 Counties During December
in Northwest MLS System Notch Price Gains from
Year Ago
KIRKLAND,
Wash. (Jan. 7, 2008) – December brought few
surprises in housing activity around Western
Washington, with above-normal precipitation
and floods contributing to the expected seasonal
slowdown, according to officials from Northwest
Multiple Listing Service.
As December came to its soggy close (marked
by a month with 25 days of precipitation for
Seattle), brokers had an optimistic outlook,
citing pent-up demand, positive job growth,
stable prices, brisk activity at open houses,
and other indications of an improving market.
"Traffic
at open houses between Christmas and New Year's
was the heaviest we've seen in a long time,"
reported NWMLS director Dick Beeson, broker/owner
of Windermere/Commencement Associates in Tacoma.
"Buyers were very upbeat and ready to act,"
he added.
Brokers
reported 3,950 pending sales (offers made and
accepted but not yet closed) system-wide during
December, lagging November's total of 5,194
transactions. When compared to the same month
a year ago, the number of pending sales dropped
by about 31 percent (5,744 versus 3,950).
Prices overall were comparable to twelve months
ago, with 13 of the 19 counties in the MLS market
area reporting increases (including seven counties
with double-digit gains). During the month,
there were 4,634 closed sales of single family
homes and condominiums with an area-wide median
selling price of $313,325. That's down slightly
(0.53 percent) from the year-ago median sales
price of $315,000.
Comparing
counties in the Northwest MLS market area, the
median sales price ranged from a low of $146,500
in Grant County to a high of $594,500 in San
Juan County. For the four-county Puget Sound
region, the median sales price for last month's
closed sales of single family homes and condominiums
was $342,000.
For
single family homes (excluding condominiums),
prices slipped less than a percentage point,
from the year-ago figure of $330,000 to last
month's price of $326,950 (down 0.92 percent).
In King County, the median sales price of $435,000
matched November. For 2007, the median price
for all homes and condos sold and closed by
members of Northwest MLS was $325,000, a gain
of 5.8 percent compared to closed sales for
2006. Condominium prices continued trending
upward, registering a 5.4 percent increase from
year-ago figures. Area-wide, last month's condos
had a median sales price of $252,900, which
compares to a year-ago figure of $240,000. In
King County, which accounted for 65 percent
of the volume, the median sales price for December's
closed sales of condominiums was $290,000, up
more than 7.4 percent from a year ago when the
median price was $269,950.
"The market conditions are positioned for increased
sales activity," said J. Lennox Scott, chairman
and CEO of John L. Scott Real Estate. "Interest
rates are down, sellers have adjusted their
prices, apartments are full, job growth is strong,
and there is a pent-up demand of buyers coming
into the market," he added.
MLS members added 5,543 new listings to the
inventory during December, slightly more than
a year ago when they added 5,357 new listings.
With those additions, the number of active listings
of single family homes and condos at month end
totaled 38,440. That's down from November's
inventory of 44,399 active listings, but up
almost 36 percent from a year ago when there
were 28,307 residences offered for sale.
"I believe the bottom has arrived in the Puget
Sound market place and from here on prices will
stay level or advance slightly in 2008," Beeson
remarked, adding, "My agents tell me their recent
conversations with buyers indicate pent-up demand
that should start showing up in the marketplace
this month and next."
Beeson
acknowledged uncertainty about new federal programs
on subprime loans and foreclosures could restrain
activity. Despite that caveat, he expects improving
numbers this year over last. Sellers are finally
"getting it" and pricing their properties closer
to where they should be. "Nothing substitutes
for correct pricing and excellent condition
for obtaining the best offer in the least amount
of time," he remarked, adding, "With interest
rates remaining low, we could see some instant
success with sales."
For
the first week of January, the 30-year fixed
rate mortgage rate was 6.14 percent, according
to the Bankrate.com national survey of large
lenders. One year ago, the mortgage index was
6.24 percent.
"Given the positive job growth, strong regional
economic outlook and the fact that buildable
land is still scarce, the return of a reasonably
hot market is likely, making this an optimum
time to buy," said Ron Sparks, a vice president
at Coldwell Banker Bain in Bellevue.
Citing
a report about declining home sales from a May
2001 Seattle daily newspaper, Sparks quoted
a question posed to readers: "Does it signal
the end of a four year boom market that's seen
the average price of King County single family
homes climb to a breath-taking $310,000?" With
the average price of a single family home that
sold last month in King County nearly $535,000
(median price = $435,000), "We know the answer,"
Sparks commented.
Northwest
Multiple Listing Service is the largest full-service
MLS in the Northwest. Based in Kirkland and
owned by its member brokers, it currently encompasses
nearly 2,100 companies with more than 26,000
sales associates. Together, they serve 19 counties,
mostly in western Washington, plus Grant, Kittitas
and Okanogan counties in the central part of
the state.
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