NWMLS members reported 5,986 pending sales of single family homes and condominiums in its market area, which covers 21 counties in Western and Central Washington. That total is down about 9.2 percent from a year ago, but it rose 11 percent from January. Last month’s volume of pending sales (mutually accepted offers) was the highest in six months, falling slightly below the August 2010 total of 6,037.
“I'm anticipating sales to be soft through April as compared to last year when a rush of buyers came into the market to take advantage of the tax credit, which expired April 30, 2010,” said OB Jacobi, president of Windermere Real Estate Company and a member of the Northwest MLS board of directors.
Noting a new year usually means new inventory, Jacobi commented on the smaller selection. Both the total number of new listings added to inventory and the total number of active listings are down from year-ago figures.
The number of new listings shrunk nearly 27 percent from a year ago, while the total number of active listings at month end was off 9.4 percent compared to twelve months ago.
Jacobi attributes the drops to distressed properties and the influence they are having on sellers. Sellers are reluctant to compete with the prices of distressed properties, he explained, and are holding off on putting their homes on the market. As a result, buyer choices have shrunk. That could bode well for some.
(Note: A distressed property is a dwelling that is in danger of foreclosure or that is in the process of being foreclosed due to a default under the terms of a mortgage.)
Some sellers of non-distressed properties are experiencing a stronger demand. “It’s not unusual for sellers in neighborhoods close to the city to get multiple offers,” Jacobi remarked. He cited the example of a home in Ballard with an asking price of more than $800,000 that drew seven offers last month, and sold for more than the asking price.
Overall, the median price for homes and condos that sold last month was $240,000, down about 7.7 percent from a year ago when the median selling price was $260,000. Five counties reported increases, with three of them – Grant, Kittitas and Jefferson – reporting double-digit gains.
In King County, the median selling price for last month’s completed transactions was $320,000, down about 6.8 percent from a year ago. For the four-county Puget Sound region, last month’s median price for single family homes and condos that sold during February was $262,250.
Brokers point to distressed properties as a major reason for depressed prices.
Jacobi said his company’s tracking showed distressed properties accounted for 37 percent of single family home sales in King County in February as compared to 30 percent a year ago. Most of that growth was from sales of bank owned properties, he noted.
Distressed properties continue to drag down home prices, Jacobi remarked. “Since they can sell for 30-to-40 percent less than non-distressed homes, we expected a price drop. In Windermere’s analysis, if you take out the distressed sales for February, the median home price jumps from $334,000 to $390,000.”
Copyright © 2011 Northwest Multiple Listing Service
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