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!"