Western Washington Brokers Post Another Month
of Strong Housing Activity Despite Shrinking Inventory
KIRKLAND, Wash. (Nov. 5, 2003) -- Neither declining inventory nor a month of weather extremes around the Puget Sound region appeared to hinder homebuyers last month, according to the latest report from Northwest Multiple Listing Service. MLS members reported another month of vigorous activity, with pending sales out gaining a year ago by 921 transactions, for a 13 percent increase.
"Usually, this is the time of year when things tend to slow down a bit as kids start school, days are shorter and holiday preparations get under way," observed NWMLS director Mike Larson of Harold A. Allen Company Realtors® in Tacoma. "With the continued great interest rates, those variables don't seem to affect the equation as much," he remarked. In fact, he said, "For many, they see it as impractical not to buy something -- it's seen as a missed opportunity. With real estate, it's not quite like the shopper who sees something on sale, recognizes it as a great purchase, and buys it whether they need it or not. But it's close."
MLS members notched 7,941 pending sales (offers made and accepted but not yet closed), up from the year-ago total of 7,020.
Activity remained strong during the month, despite an unseasonably warm start and subfreezing temperatures at month end, with record rainfall, widespread flooding and disruptive windstorms in between.
Brokers scrambled to add new listings to inventory, but activity lagged a year ago. Members added 9,394 properties to the MLS system during October -- about 13 percent less than a year ago when members added 10,810 new listings. Last month's additions included 8,015 single family homes and 1,379 condominiums.
At month end, prospective buyers could select from 27,061 active listings, which compares to the year-ago inventory of 29,155 properties. Eleven counties reported having fewer listings last month than the same period a year ago.
NWMLS director Dick Beeson, managing broker at Windermere Real Estate/Paragon Company in Tacoma, said the adjustment in inventory was noticeable and "caught us a little off guard" even though overall production was good. He expects lower inventory for the balance of the year, with prices likely to remain higher than in the recent past. While that situation could make affordability for first-time buyers a challenge, Beeson said lenders are "trying to come to the rescue by becoming even more creative in the quest to qualify prospective buyers." New loan programs continue to be added to help offset increased prices, he noted.
Closed sales surged during October, reflecting the large volumes of pending sales during the previous few months. MLS members reported 8,633 closings last month, a whopping 42.5 percent increase from twelve months ago when the number of completed transactions totaled 6,057.
Last month's activity held few surprises for most brokers. Commenting on activity, Jerry Moon, vice chairman of John L. Scott Real Estate, said, "As predicted, October was another phenomenal month for housing, and we're well on our way to the most successful year in the history of residential real estate
For last month's closings of single family homes and condominiums, the median price area-wide was $217,500, about 6.9 percent higher than the year-ago figure of $203,500. San Juan County claimed the highest priced homes, at a median sales price of $415,000. That was followed by King County, where the median price for last month's completed sales was $269,000, up about 3.5 percent from the year-ago figure of $260,000.
For single family homes only (excluding condominiums), the median price for last month's sales system wide was $225,000. San Juan County topped the list, with single family homes that sold there fetching a median sales price of $444,000. In King County, the median price for last month's single family home sales was $290,975, followed by Snohomish County, where homes sold for a median price of $232,950. All other counties reported median sales prices under $200,000.
Looking ahead, NWMLS director Ron Howard, a senior vice president of John L. Scott Real Estate, expects strong activity will continue, thanks largely to favorable interest rates. "This continues to be a positive long-term view as interest rates could rise substantially and still be considered low, thus supporting stability and further high pending and closed activity," Howard stated. |
