Members of Northwest Multiple Listing Service (NWMLS) 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 19 counties in the NWMLS 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).
NWMLS figures for single family homes show all counties in its market area since 2002 have had median price gains of 50 percent or greater.
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.
Monday, January 26, 2009
Monday, January 19, 2009
Snohomish County Statistics - December
Current Residential & Condo listings - 5,376 (down 1.68% from last year)
New listings taken this month - 802
Pending sales this month - 547 (down 13.99% from last year)
Percent of listings that sold this month - 10.18%
Median closed sales price - Dec. ‘07, $339,675
Median closed sales price - Dec. ‘08, $307,000
Rate of appreciation = -9.62%
~ Courtesy of NWMLS
New listings taken this month - 802
Pending sales this month - 547 (down 13.99% from last year)
Percent of listings that sold this month - 10.18%
Median closed sales price - Dec. ‘07, $339,675
Median closed sales price - Dec. ‘08, $307,000
Rate of appreciation = -9.62%
~ Courtesy of NWMLS
King County Statistics - December
Current Residential & Condo listings - 11,636 (up 6.29% from last year)
New listings taken this month - 1,923
Pending sales this month - 1,167 (down 21.57% from last year)
Percent of listings that sold this month - 10.03%
Median closed sales price - Dec. ‘07, $389,500
Median closed sales price - Dec. ‘08, $370,700
Rate of appreciation = -4.83%
~ Courtesy of NWMLS
New listings taken this month - 1,923
Pending sales this month - 1,167 (down 21.57% from last year)
Percent of listings that sold this month - 10.03%
Median closed sales price - Dec. ‘07, $389,500
Median closed sales price - Dec. ‘08, $370,700
Rate of appreciation = -4.83%
~ Courtesy of NWMLS
Eastside Statistics - December
Current Residential & Condo listings - 4,235 (up 19.53% from last year)
New listings taken this month - 580
Pending sales this month - 320 (down 25.58% from last year)
Percent of listings that sold this month - 7.56%
Median closed sales price - Dec. ‘07, $500,000
Median closed sales price - Dec. ‘08, $470,000
Rate of appreciation = -6.00%
~ Courtesy of NWMLS
New listings taken this month - 580
Pending sales this month - 320 (down 25.58% from last year)
Percent of listings that sold this month - 7.56%
Median closed sales price - Dec. ‘07, $500,000
Median closed sales price - Dec. ‘08, $470,000
Rate of appreciation = -6.00%
~ Courtesy of NWMLS
NWMLS members expecting "market observers" will become "market participants"
Frigid temperatures and record snowfall brought home sales to a standstill for several days in December. The unusual weather, when coupled with the expected holiday slowdown, contributed to a 17.6% slide in pending sales compared to the same month a year ago, according to figures from Northwest Multiple Listing Service (NWMLS).
"December typically has a slowdown in sales due to the holidays, but the recent snowfall compounded this seasonal slowing," said J. Lennox Scott, Chairman and CEO of John L. Scott Real Estate.
Commenting on the latest NWMLS statistics, Ron Sparks of Coldwell Banker Bain said, "The current numbers certainly reflect market attitude, as many buyers continue to be market observers rather than market participants." Sparks, who is CBB’s managing vice president, said agents are telling him their motivated buyer clients are simply becoming weary of waiting, and are acknowledging the timing "now seems right to actively search for their next home."
On the sellers’ side, Sparks said savvy agents are advising their clients that this market environment demands a very disciplined and realistic approach to pricing. This is particularly true in King County, he noted, where the number of homes on the market continues to slowly increase.
The savvy buyers agent also understands that this highly competitive environment means more quality homes to choose from, and these homes can be bought at a comparative bargain over years past, according to Sparks. "Couple this with interest rates that are now very nearly irresistible and the incentive to home shop grows much stronger," he remarked.
“Now is a great time to buy a home,” said Mike Welty, a mortgage banker with Guild Mortgage Company in Bellevue. Welty points out a number of factors for this including home prices in some areas being close to 2004-2005 levels, a first-time home buyer tax credit of up to $7,500, plus the availability of low or no money down programs for many purchasers.
NWMLS director Dick Beeson expects interest rates will remain in the low 5% or high 4% range. "This is a stimulus package we can count on and one that works. Banks are finally getting it and so are buyers as they realize their buying power has gone up," said Beeson, the broker/owner of Windermere/Commencement Associates in Tacoma.
Sparks said many economists are now seeing the bottom of the national real estate market, and the greater Seattle area continues to be mentioned as well-placed to lead that recovery. "While no one can predict the future, I believe we can place reasonable trust and faith in the desirability and overall value of our regions real estate," he stated, adding, "That’s good news for buyers and sellers alike!"
"December typically has a slowdown in sales due to the holidays, but the recent snowfall compounded this seasonal slowing," said J. Lennox Scott, Chairman and CEO of John L. Scott Real Estate.
Commenting on the latest NWMLS statistics, Ron Sparks of Coldwell Banker Bain said, "The current numbers certainly reflect market attitude, as many buyers continue to be market observers rather than market participants." Sparks, who is CBB’s managing vice president, said agents are telling him their motivated buyer clients are simply becoming weary of waiting, and are acknowledging the timing "now seems right to actively search for their next home."
On the sellers’ side, Sparks said savvy agents are advising their clients that this market environment demands a very disciplined and realistic approach to pricing. This is particularly true in King County, he noted, where the number of homes on the market continues to slowly increase.
The savvy buyers agent also understands that this highly competitive environment means more quality homes to choose from, and these homes can be bought at a comparative bargain over years past, according to Sparks. "Couple this with interest rates that are now very nearly irresistible and the incentive to home shop grows much stronger," he remarked.
“Now is a great time to buy a home,” said Mike Welty, a mortgage banker with Guild Mortgage Company in Bellevue. Welty points out a number of factors for this including home prices in some areas being close to 2004-2005 levels, a first-time home buyer tax credit of up to $7,500, plus the availability of low or no money down programs for many purchasers.
NWMLS director Dick Beeson expects interest rates will remain in the low 5% or high 4% range. "This is a stimulus package we can count on and one that works. Banks are finally getting it and so are buyers as they realize their buying power has gone up," said Beeson, the broker/owner of Windermere/Commencement Associates in Tacoma.
Sparks said many economists are now seeing the bottom of the national real estate market, and the greater Seattle area continues to be mentioned as well-placed to lead that recovery. "While no one can predict the future, I believe we can place reasonable trust and faith in the desirability and overall value of our regions real estate," he stated, adding, "That’s good news for buyers and sellers alike!"
94% of Metro Markets Show Net Gains in Home Values over a 5-Year Period
Nearly 94% of the 292 nationwide metropolitan markets in a quarterly survey by the Federal Housing Finance Agency (FHFA) showed positive net home values over a 5 year timeline. 27 metropolitan areas - including 9 of 11 areas within Washington that are included in the survey - notched gains of 50% or higher since 2003.
Among Washington state's metro markets in the survey, the TriCities area encompassing Kennewick-Pasco-Richland ranked 13th nationally with a 4.11% 1-year gain and a 20.05% 5-year gain, topping other in-state areas. Seattle-Bellevue-Everett, while retreating 2.97% over the past year, saw it's 5-year gain come in at 54.86%.
Only 43 nationwide metropolitan markets (about 15% of the total) saw appreciation gains of 2% or higher in the past year.
Of 20 ranked metropolitan markets with the greatest price declines over the past four quarters, all but one (Las Vegas-Paradise, NV) were in California or Florida.
FHFA purchase-only and all-transactions house price indexes track average house price changes in repeat sales or refinancings of the same single-family properties. Both indexes are based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over the past 34 years.
The report was previously published by the Office of Federal Housing Enterprise Oversight (OFHEO). The complete 85-page survey is available at www.fhfa.gov.
Among Washington state's metro markets in the survey, the TriCities area encompassing Kennewick-Pasco-Richland ranked 13th nationally with a 4.11% 1-year gain and a 20.05% 5-year gain, topping other in-state areas. Seattle-Bellevue-Everett, while retreating 2.97% over the past year, saw it's 5-year gain come in at 54.86%.
Only 43 nationwide metropolitan markets (about 15% of the total) saw appreciation gains of 2% or higher in the past year.
Of 20 ranked metropolitan markets with the greatest price declines over the past four quarters, all but one (Las Vegas-Paradise, NV) were in California or Florida.
FHFA purchase-only and all-transactions house price indexes track average house price changes in repeat sales or refinancings of the same single-family properties. Both indexes are based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over the past 34 years.
The report was previously published by the Office of Federal Housing Enterprise Oversight (OFHEO). The complete 85-page survey is available at www.fhfa.gov.
King County Now Requires Septic Systems to be Inspected at the Time of Sale
In King County, the seller of any single or multi-family residential property served by an on-site septic system is now required to have a monitoring and performance inspection prior to transfer of title. King County will require the inspection and report to be completed by a King County licensed On-Site System Maintainer (OSM). A copy of the inspection report must be submitted to the Health Department and the buyer prior to transfer of title. The new requirement is set forth in King County Board of Health Code Section 13.60.030.
Please note that King County will not enforce this requirement for transactions that are pending on or before January 19, 2009.
To obtain more information, including a copy of the inspection form and a list of licensed OSMs, call King County's Operation & Maintenance Program Manager, Michelle Britt at (206) 205-8962 or visit http://www.kingcounty.gov/healthservices/health/ehs/wastewater.aspx.
Please note that King County will not enforce this requirement for transactions that are pending on or before January 19, 2009.
To obtain more information, including a copy of the inspection form and a list of licensed OSMs, call King County's Operation & Maintenance Program Manager, Michelle Britt at (206) 205-8962 or visit http://www.kingcounty.gov/healthservices/health/ehs/wastewater.aspx.
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