Adjusting to New Realities
The third quarter of 2007 saw both buyers and sellers continuing to adjust to the new realities of a more buyer-friendly market, with some sellers reluctant to accept lower prices despite large inventories of homes. And while Western Washington seems to have missed the worst of the subprime mortgage crisis in terms of foreclosures and delinquencies, tightening lending practices have hampered sales.
July
The midsummer market saw increasing inventories and rising home price appreciation, though pending sales were down throughout the state. The median sales price of a home in King County was up 9% to $390,000.
August
August saw much of the same regarding inventory, appreciation, and sales. Pending sales were down 22%, but homes in Pierce County jumped almost 10% in appreciation. In Snohomish County, they were up 4.5%.
September
Pending sales were down in September compared to the same time last year, but home prices were up about 4% across the Western Washington footprint of the NWMLS. Kitsap County saw the highest year-over-year appreciation at almost 13%.
Third Quarter Overview
We may have seen the peak of housing inventories. Though there are 33% more houses on the market in September than there were a year ago, the trend seems to indicate that the inventory could start dipping slightly as the year ends.
Sellers with homes in good neighborhoods and who price their homes well can still expect multiple offers. But the time has never been better for buyers to see such a large and diverse offering of homes. Due to the current inventory, there is less competition, but with values holding steady, buyers have a great opportunity to position themselves for the future.
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