February 2008 NWMLS Update
From NWMLS Press Release:
February housing activity around western Washington signaled signs of an emerging spring market with a noticeable increase in open house traffic, reports of multiple offers and a big jump in pending sales from the previous month.
New figures from Northwest Multiple Listing Service show a 23.6 percent increase in pending sales (offers made and accepted, but not yet closed) compared to January. Prices for last month’s closed sales of single family homes and condominiums (combined) were up in 12 of the 19 counties in the MLS service area.
“In March, the real estate market is set to get its mojo back,” remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “We’re already seeing the momentum build as more and more buyers realize what a great time it is to buy a home thanks to low interest rates, healthy inventory, and a strong local economy,” he added.
Area-wide, the MLS reported 5,563 pending sales of single family homes and condominiums for February, up from January’s total of 4,499. Last month’s total still lagged the busier market of a year ago when there were 8,043 pending sales of single family homes (a decline of nearly 31 percent).
While encouraged by last month’s jump in pending sales from January, brokers also acknowledge hesitancy still exists among some buyers. However, among sellers, one broker said “they’re motivated like never before and willing to listen to reasonable offers much more readily today.”
The fluctuation in interest rates has confused some buyers, according to NWMLS director Dick Beeson, broker/owner of Windermere Commencement Associates in Tacoma. “Buyers need stability to trust that all is well and that they’ll be able to obtain financing,” he suggested.
One certainty house hunters have is ample selection. Inventory is up almost 39 percent from a year ago. At the end of February there were 43,927 active listings of single family homes and condominiums in the Northwest MLS system, which covers most of western Washington.
The selection of homes in King County is about two-thirds larger than a year ago, boosted in part by nearly twice the number of condominiums offered for sale. At the end of February, MLS brokers reported 3,478 condos for sale countywide, up from 1,784 listings a year ago. The inventory of single family homes in King County is up about 61 percent from a year ago, rising from 6,124 listings twelve months ago to 9,875 at the end of last month.
Brokers added 12,104 new listings of single family homes and condominiums to inventory during February, bringing the system-wide total to 43,927. That compares to figures of 11,333 new listings during February 2007, for a year-ago total inventory of 31,658 residences (up nearly 39 percent). Compared to January, inventory increased about 6 percent.
Even with a bigger selection, some brokers are reporting multiple offer situations. MLS director Diedre Haines, broker at Coldwell Banker Bain in Lynnwood, said she assisted agents with negotiations on 10 multiple offers during the past month.
“The atmosphere is definitely changing, Haines commented, noting agents reported more than 100 visitors to an open house a few weekends ago at a new housing development in Mill Creek. Reflecting on her 32 years in the business, she said — somewhat in jest — that she’s tempted to going back to selling rather than being a managing broker. “There’s an opportunity to really have a lot of business,” she commented.
Selling prices for all residential sales across all counties dipped slightly (about 2 percent) from a year ago, even though 12 of the 19 counties reported gains.
In the four-county Puget Sound region, prices for single family homes and condos that sold in King County last month were essentially unchanged from a year ago, rising about one-half percentage point, from $393,250 to $395,000. Snohomish, Pierce and Kitsap reported modest price declines from a year ago.
Despite the plentiful selection of condominiums, prices still increased from a year ago. For last month’s completed transactions, the median selling price of a condo was $257,075, up 2 percent from the year-ago figure of $252,000. In King County, where six of every 10 condo sales occurred, the median selling price was $289,000, up 1.3 percent from the year-ago figure of $285,250.
Brokers say uncertainty about financing is prompting some buyers to stay on the sidelines. “No down payment loans are pretty much a thing of the past and FHA loans are becoming more attractive because of low down payment and reasonable qualifying standards,” Tacoma broker Beeson said. Low FHA loan limits are making a difference in King County, but are not a deterrent in Pierce County, he noted. Worries about the subprime mortgage debacle and adjustable rate mortgages are apparent, he said, adding, “But there are solutions for every real estate problem. We’ll handle them all,” he proclaimed.
