| HeraldNet - Snohomish County's online news source |
 TUESDAY, FEBRUARY 9, 2010 7:12 am |
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Business 
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Hopeful trend for housing market Pending home sales in the county increase in comparison to 2008 for the third month in a row. The housing market in Snohomish County showed signs of recovery in June, driven by first-time buyers shopping for homes at burst-bubble prices.The Northwest Multiple Listing Service reported that pending sales in June increased 30 percent over the same month last year, giving real estate agents a reason to hope that a full recovery isn't far away. More than 1,190 sales were pending in June, up from 915 last year. Pending home sales also increased in May and April in Snohomish County, compared to the same months in 2008. However, completed home sales increased less than 1 percent in the county compared to June 2008. Brokers described the upward trend as "encouraging," citing shrinking inventory and a small 4.4 percent increase for median home prices in Western Washington since the start of the year. The somewhat timid resurgence largely stems from first-time buyers looking to snatch up inexpensive homes and low prices, said Nathan Gorton, executive officer for the Snohomish County-Camano Association of Realtors. Closed condo sales were up 6.78 percent from June of 2008 -- further reinforcing the theory that buyers who haven't previously owned are driving the county's sluggish real estate recovery. The federal government's $8,000 tax credit for first-time buyers was the push many on-the-fence buyers needed, Gorton said. "About 50 percent of the market is first-time home buyers taking advantage of that $8,000 tax credit," Gorton said. "And they tend to gravitate toward condos, because they're usually the most affordable home on the market." But because of increased interest, condo buyers might not be getting quite as good a deal as they think. The median price of a condo in Snohomish County was $243,450 in June, only 1 percent lower than it was a year ago. By comparison, the median price of a house was $307,000, down 11.61 percent from last year. The region's large inventory of foreclosed or distressed property continues to undercut the market, frustrating brokers and agents, the Multiple Listing Service reported. A recently released study from the National Association of Realtors blamed distressed homes selling at roughly 20 percent less than the normal market price and deflating median home prices. Snohomish County was one of seven Northwest counties to report a 30 percent jump in pending sales in June. "It's encouraging to see that pending sales are at their highest since the credit bubble burst nearly two years ago," said John L. Scott Real Estate Chief Executive J. Lennox Scott. "This is an indication that the $8,000 tax credit is working and the market has reactivated itself in the more affordable and mid-price ranges." Snohomish County saw 1,730 new listings last month, down from 1,961 in June 2008. The Puget Sound region has nearly 7,000 fewer homes listed for sale than last year. In the Northwest Multiple Listing Service's 19-county market, brokers reported 7,733 pending sales of homes in June. Compared to the same month last year, that's a gain of 19.5 percent -- about 1,263 sales. "In anyone's book, that's substantial improvement," said Ron Sparks, managing vice president of Coldwell Banker Bain. Gorton said increased outreach from the real estate sector could factor into the market's awakening. Association members had positive reports about a statewide weekend of open houses last month, he said. And though he's reluctant to say the sometimes-volatile market has bottomed out for good, he does think consumer attitudes have taken a more spend-friendly turn. "I think people are starting to realize that this too shall pass," Gorton said. "I think people are starting to get a little more confident that we're going to make it through this." Pending home sales June: 1,190 pending sales, up 30 percent from June 2008 May: 1,160 pending sales, up 31 percent from May 2008 April: 1,111 pending sales, up 28.6 percent over April 2008 Read Amy Rolph's small-business blog at www.heraldnet.com/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com. |
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