Everything I keep reading about foreclosures is that the worst is over as far as it concerns the local market.
King County house prices up from 2011, down from June
By AUBREY COHEN, SEATTLEPI.COM STAFF
Updated 1:15 p.m., Monday, August 6, 2012
Seattle-area house prices posted another gain in July, while cooling a bit from June, according to a new report.
The median price of a King County house that sold in July was $375,250, up 7.2 percent from a year earlier but down 1.3 percent from June, the Northwest Multiple Listing Service reported Monday. June saw the county's first double-digit year-to-year gain since the housing bust.
After three straight months of double-digit increases, Seattle saw its median rise just 6.3 percent from a year earlier in July, to $425,000. That was unchanged from June.
Sales of houses and condos jumped by 27.5 percent from a year ago countywide and 24.1 percent in Seattle. Pending sales, which don't all close but can be the best indicator of recent activity, were up by 12.6 percent countywide and 14 percent in Seattle.
The story continues to be extremely low inventory. The county had 2.4 months worth of homes for sale at the current pace in July. That's unchanged from June and down from 5.4 months worth of homes for sale in July 2011. Seattle had 2.2 months worth of inventory, down from 4.6 months a year earlier but up from 2 months in June.
"Counter to the historic yearly pattern of increasing inventory from January to late summer, this year we have seen inventory levels shrink month over month," Joe Spencer, Keller Williams Northwest Region director, said in a listing service news release. "This pattern of shrinking inventory, historically low interest rates and higher consumer confidence clearly signals that the market is on the rebound."
A lower level of "distressed homes" -- those in or under threat of foreclosure -- has helped buoy prices, because these homes typically sell at a discount.
The fact that banks have been able to efficiently deal with distressed homes also has eased fears that these homes would be a drag on the market, Spencer said. "All of this bodes well for a sustainable housing recovery."
Condominium prices are weaker than those for houses. The median price of a King County condo that sold in July was $200,500, up just 0.25 percent from a year earlier and down 8.9 percent from June. Seattle condos were weaker, with a median price, $250,000, down 2 percent from a year earlier and 7.4 percent from June.
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