Housing Market Becoming More Balanced as Sales Climb to Highest Level in 10 Months

Posted by David Edwards under For Buyers, For Sellers, Regional - West, Statistics, News & Media, Regional News, Renton

KIRKLAND, Wash. (July 7, 2008) - Home sales around Western Washington last month reached the highest level since August 2007 as market conditions continue to favor buyers, according to a new report from Northwest Multiple Listing Service.

Prices in most counties were down compared to a year ago, but up slightly compared to May. Inventory showed signs of returning to a more balanced market.

Northwest MLS members reported 6,470 pending sales system-wide during June, the highest volume since August when members notched 7,751 pending sales (offers made and accepted, but not yet closed). Compared to the same month a year ago, pending sales were down nearly 30 percent. Eleven of the 19 counties in the MLS service area reported increases in the number of pending sales last month from May.

Members added 13,187 new listings of single family homes and condominiums to inventory (the fewest number since February). With those additions, the number of active listings in the MLS database totaled 50,143, about 10.9 percent more than a year ago. On a percentage basis, there has not been a year-over-year change this small since December 2005 when inventory rose just 2.3 percent from December 2004.

Abundant inventory tends to favor buyers, but the local market is more balanced than most parts of the country. Of existing homes available for sale, the National Association of REALTORS reported a 10.8 month supply for May at the current sales pace.

An analysis of the Northwest MLS database for June activity shows a 5.9 month supply in King County, a 6.7 month supply in the 4-county Puget Sound region (King, Snohomish, Pierce and Kitsap counties), and a 7.4 month supply system-wide (19 counties).

Many housing experts say a 6-month supply creates equilibrium being buyers and sellers.
"Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages," commented Richard Gaylord, president of the National Association of REALTORS® (NAR). "Today's buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth" Gaylord, a broker in Long Beach, Calif., said in a news release issued by NAR in late June.
Prices for sales of single family homes and condominiums (combined) that closed during June dipped 5.7 percent from twelve months ago. The median price for last month's completed sales was $314,900, down from the year-ago median of $334,000, but compared to May, prices rose about 1 percent.

In the four-county Puget Sound region, the median selling price for last month's completed sales was $340,000. That's down about 6 percent from a year ago when the median price was $361,900. It is unchanged from May.

Prices for single family homes (excluding condos) that sold last month dropped 7.8 percent from a year ago, while condo prices crept up slightly (0.80 percent).

Condo prices in King County, where about two-thirds of the sales occur, rose about 5.3 percent last month compared to a year ago. From May to June, condo prices increased about 2.5 percent.

Western Washington's housing market continues to fare better than most metropolitan markets around the country, buoyed by a relatively healthy economy and growing population.
Along with ample inventory, house-hunters have access to a broad array of financing options. Rates on 30-year mortages averaged 6.35 percent last week, reversing a pattern of five straight weeks of increases, according to Freddie Mac. A year ago, rates on 30-year mortgages stood at 6.63 percent.

Brokers also point to FHA-insured loans and higher loan limits as an option for first-time home buyers and people with flawed credit. Such loans require only a 3 percent down payment and allow borrowers to use gift money for down payments and closing costs. In February, as part of a stimulus package approved by Congress, the FHA increased the loan cap in the Seattle-Bellevue-Everett metropolitan area from $362,790 to $567,500.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 31,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state.

This was a press release provided by the Northwest Multiple Listing Service.

David Edwards
REALTOR
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
E-Mail: david@davidjedwards.com
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David J Edwards is a full time real estate agent and REALTOR with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers in Renton, Newcastle and South Bellevue Washington.