Northwest MLS Brokers Report $20 Billion in Home Sales During 200819 counties in the MLS service area

KIRKLAND, Wash. (Jan. 22, 2009) – Members of Northwest Multiple Listing Service tallied nearly $20 billion in sales of single family homes and condominiums during 2008. The total reflects closed sales of 54,123 single family homes and condominiums across Northwest MLS Brokers Report $20 Billion in Home Sales During 200819 counties in the MLS service area.

Last year’s numbers reflect the market slowdown that started in August 2007 when the “mortgage meltdown” became apparent. Both the dollar volume and number of units sold were down sharply from record-setting activity of 2005-2006. In 2005, NWMLS reported around 103,000 closed sales valued at around $33.7 billion, followed by 96,000 residential sales in 2006 worth around $35.4 billion.

Median prices (half sold for more, half for less) for homes and condos that sold during 2008 were down 6.15 percent area-wide compared with 2007.

The area-wide median price for a single family home that sold and closed during 2008 was $316,000 (average was $381,665). Condominiums that sold last year had a median selling price of $253,500 (average sales price was $301,065).

Only two counties, Grant and Okanogan, reported slight gains in year-over-year median prices for sales of single family homes and condos combined, while all others experienced declines ranging from 2.2 percent (Cowlitz County) to nearly 11 percent (Jefferson County). Prices in King County, which accounted for 39 percent of the closed sales, fell about 2.3 percent.

MLS figures for single family homes show all counties have had median price gains of 50% or greater since 2002. Single family homes accounted for approximately 84% of the residential units that sold in 2008 and more than 87% of the dollar volume.

In its annual report, Northwest MLS summarized listing activity, pending sales and closed sales. Among some of the findings:
• Members added 137,278 new listings of single family homes and condos to the MLS database during 2008.
• Nearly eight of every 10 transactions (79 percent) were listed by one office and sold by a different office.
• 1,171 single-family homes and 106 condominiums sold for $1 million or more; 598 condos sold for $500,000 or more.
• A Seattle home on Lake Washington fetched the highest sales price at $15.8 million.
• Among condo sales, a penthouse in a downtown Seattle high-rise commanded $9 million, the highest in that category.
• 60% of condos sold during 2008 were in King County, and 76% of condos that sold during 2008 had 2 or fewer bedrooms.
• In the four-county Puget Sound region (King, Snohomish, Pierce and Kitsap), only about 7.3 percent of single family homes sold for under $200,000. Nearly one of every four homes (23.5 percent) in that area sold for $500,000 or more.
• The second quarter was the most active for pending sales; nearly 29 percent of the offers that were made and accepted last year occurred during the April-June timeframe.
• The price of a 3-bedroom home built before 2006 varies widely across the MLS market area. San Juan County topped the list at $575,000, followed by King County at $390,000. The most affordable 3-bedroom homes are in Grant County ($144,250) and Grays Harbor County ($148,000).
• A comparison of prices by school district has Mercer Island as the most expensive. The median price for homes that sold last year in that district was $1,025,000.

Commenting on the 2008 numbers, J. Lennox Scott, chairman and CEO of John L. Scott Real Estate cited five events that “rocked the Puget Sound residential real estate market.”
“The year started with the carryover of the credit crisis from 2007, which continued to impact every aspect of the real estate market,” Scott remarked. “In March, gas prices rose to more than $4.00 a gallon. Next was the demise of Washington Mutual followed closely by the shock of the stock market adjustment in late September that firmly placed the country in a recession. Lastly was the extreme weather in December that kept people in their homes for nearly two weeks. We knew the real estate market was due for slowing in 2008, but no one could have predicted all of these events or the profound effect they would collectively have on the housing economy,” he stated.

Heading into 2009, Scott is upbeat. “We are entering the year of new beginnings: new year, new President, and new attitude. It will also be a year of transition for the housing market that will begin rebuilding itself starting with the more affordable price ranges. We’re seeing some of the lowest interest rates in history which will spur both refinance and home purchase activity in 2009.”

Scott expects the highly anticipated passage of a new housing stimulus package in January will provide critical support to buyers and homeowners. “The greatest opportunities exist for first time buyers, move up buyers and reposition buyers. As these buyer groups make their move in the coming year it will begin the much needed process of rebuilding the housing economy,” according to Scott.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 28,000 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.