NWMLS Brokers Report $20 Billion in Home Sales During 2008

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.