Western Washington home buyers starting to grasp "unique housing opportunities"

Home buyers appear to be in a "mental filibuster," according to one real estate executive upon seeing the latest figures from Northwest Multiple Listing Service. The report on February activity for 19 counties across Washington shows slight gains in pending sales and selling prices from January, but brokers say many would-be buyers remain on the sidelines, paralyzed by the uncertain economy.

"I believe these results are reflective of what might be called a "mental filibuster" for potential home buyers -- they are struggling between the desire to buy a home and the uncertainty of what might come next in the way of government stimulus, tax credits or lower mortgage rates," observed Ron Sparks, managing vice president of Coldwell Banker Bain. Agents are reporting "tremendous activity" at open houses, with the last few weekends generating the best activity in several months. Despite the high interest, what's stopping buyers, according to Sparks, is weak consumer confidence.

"Buyers don't yet understand what the stimulus package means to them," said NWMLS director Kathy Estey, managing broker of John L. Scott's Bellevue Downtown office. "Good houses at good prices that are affordable are getting attention," she remarked, noting her office had four multiple offer situations the last week of February for homes priced under the median cost. "Open house activity is up and attendees are serious," Estey reported.

"What we need most is a continued reduction in inventory coupled with a huge reduction in foreclosed and short sale properties on the market," said NWMLS director Dick Beeson, broker/owner of Windermere Commencement Associates in Tacoma. "It could take some time to absorb so many of these types of properties," Beeson, a Realtor since 1979, acknowledged.

J. Lennox Scott, Chairman and CEO of John L. Scott Real Estate, was also upbeat about the housing provisions of the stimulus package that was approved in mid-February. "The $8,000 tax credit for first time buyers does not have to be repaid. . . and first time buyers who purchase before April 15 can apply the tax credit to their 2008 tax return," he emphasized. Scott described the combination of historically low interest rates and increased affordability as "an opportune time for buyers to take a look at purchasing their first home."

Ron Sparks also commented on housing affordability, saying it's at its best in decades. "This certainly appears to be a once in a generation home buying opportunity, but it's also coupled with a once in a generation economy," he stated.

Right now is a great time to buy. Very rarely do we get the combination of lower prices, high amounts of inventory, anxious sellers willing to deal, and interest rates that are at approximately 50 year lows. This is the very best time to buy we’ve had in years!

~ Courtesy of NWMLS