Countrywide Mortgage hasn’t had a particularly good year and now it’s just gotten worse. Today, the states of California and Illinois announced they are suing Countrywide over predatory lending practices. And, Washington state is seeking to revoke Countrywide’s license, impose a $1 million penalty and halt the lender from writing mortgage loans in the state.
Well…not really lies. More of a mistake, but a serious one. The published March 2008 condo closed sales median price data for Areas 700, 701, 705, 710, 715 and 720, in the King County Breakout PDF are incorrect. The PDF is published by the NWMLS on its public site - www.nwrealestate.com and its member site. As a result, the reported condo sales figures for Seattle are skewed and have been republished incorrectly by local media.
I’ve reported the error and am waiting for the revised data.
Update: They actually sent me the corrected report fairly quickly. It doesn’t look like they’ve updated the public site yet, though.
From CNN Video: Desperate owners burn homes
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.”
1. Condo Conversion Bill, Senate Bill 6411
Per the Senate’s listserv notification I received, the February 5th Public Meeting on the bill was cancelled. It is not currently on the agenda for this coming week.
2. Reserve Accounts & Studies for Condominiums, House Subsitute Bill 2541, Senate Bill 6215
Authorizes condominium associations to conduct reserve studies and to establish a reserve fund. The bills have passed their respective houses and now move to the opposite house for consideration. A public hearing of the Senate’s version will be heard in the House on February 20th while a public hearing of the House’s version will be heard in the Senate on February 21st.
House Subsitute version summary:
Senate version summary:
3. Seller’s Disclosure Statement Revision, House Bill 2894
The bill amends the Seller’s Disclosure Statement, Form 17, to include wood burning appliances. The bill passed the House and has moved to the Senate. A public hearing as been scheduled in the Senate on February 22nd.
The Seattle PI reported that Governor Gregoire signed into law a $1.5 million bill that’ll provide counseling to at-risk homeowners.
The money will go to agencies that counsel people facing foreclosures, as the governor tries to curtail effects of the mortgage loan crisis hitting the nation and the state. The bill signed Monday also will pay for a free number for people to call for help. The number, 1-877-894-HOME, will be operating in about two weeks.
(Press Release from the NWMLS)
Members of Northwest Multiple Listing Service tallied more than $32.3 billion in sales of single family homes and condominiums during 2007 . The MLS also reported 18 of the 19 counties in its market area experienced increases in median prices compared to 2006, with one county matching the 2006 price.
In its year-end summary report, Northwest MLS, whose service area covers about 80 percent of the state’s population, logged more than 82,000 closed sales during 2007. Single family homes accounted for nearly 82 percent of the number of sales and about 86 percent of the dollar volume, with condominiums making up the balance.
Last year’s volume, measured by number of units, amounted to a drop of about 14.5 percent from 2006. The dollar volume, compared to the previous year, was down about 8.7 percent. Underscoring the “real estate is local” mantra, median price gains among the counties ranged from zero to nearly 16.1 percent.
Among highlights the broker-owned service noted for 2007:
Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 31,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state.
KIRKLAND, Wash. (Jan. 7, 2008) – December brought few surprises in housing activity around Western Washington, with above-normal precipitation and floods contributing to the expected seasonal slowdown, according to officials from Northwest Multiple Listing Service.
As December came to its soggy close (marked by a month with 25 days of precipitation for Seattle), brokers had an optimistic outlook, citing pent-up demand, positive job growth, stable prices, brisk activity at open houses, and other indications of an improving market.
“Traffic at open houses between Christmas and New Year’s was the heaviest we’ve seen in a long time,” reported NWMLS director Dick Beeson, broker/owner of Windermere/Commencement Associates in Tacoma. “Buyers were very upbeat and ready to act,” he added.
Brokers reported 3,950 pending sales (offers made and accepted but not yet closed) system-wide during December, lagging November’s total of 5,194 transactions. When compared to the same month a year ago, the number of pending sales dropped by about 31 percent (5,744 versus 3,950).
Prices overall were comparable to twelve months ago, with 13 of the 19 counties in the MLS market area reporting increases (including seven counties with double-digit gains). During the month, there were 4,634 closed sales of single family homes and condominiums with an area-wide median selling price of $313,325. That’s down slightly (0.53 percent) from the year-ago median sales price of $315,000.
Comparing counties in the Northwest MLS market area, the median sales price ranged from a low of $146,500 in Grant County to a high of $594,500 in San Juan County. For the four-county Puget Sound region, the median sales price for last month’s closed sales of single family homes and condominiums was $342,000.
There have been significant news reports about the housing market in the media lately. Most of the reports focus on falling prices, increasing foreclosure rates and rising inventory, but at a national level. Locally, how has Seattle fared?
In November, Seattle’s residential median price of $405,000 reflected a 2.2% increase over October, but a 4.7% decrease compared to the same period last year. As the graph below shows, the median price has been underperforming for the past few months.
In reviewing month over month figures, the single family home median price has stabilized while condominiums have declined the past two months. However, when compared to last November, both single family homes and condos saw higher median prices in November 2007, increasing 3.3% and 2.5%, respectively.
Well, not quite. When compared to a year ago, yes, King County’s active listings (single family homes & condos) are up 44.3% from the prior year…but that’s been the case for most of the year.
In actuality, when compared to September, the inventory level fell 2% in October to 14,240 listings in King County. Seattle’s overall inventory inched up slightly by 2.6% to 4,197 listings.
Pending sales in the county increased 7.4% and in Seattle by 9.8% from September to October. Compared to a year ago, pending sales are down 28.5% in the county and 20.5% in Seattle. Pending sales reflect properties that went under contract but have not yet closed. In other words, more buyers made home purchases in October compared to September, though fewer overall compared to the same period last year. The median price in county and city fell to $387,500 and $396,250, respectively.
The inventory absorption rate decreased to 6.0 months in the county and 5.3 months in Seattle. What this means is that if no new listings come on the market, it will take 6 months to sell the current inventory in the county and 5.3 months to sell the inventory in Seattle. A lower absorption rate indicates a seller’s market while higher rates reflect a buyer’s market. A year ago, Seattle’s absorption rate was 2.7 months and the county’s was 2.9 months. Currently, inventory levels in the county and city reflect a normal market environment.
For condo specific market information, please visit the Seattle Condo Blog’s Seattle Condo Sales Performance - October.
Source: NWMLS (single family homes & condos)