Current Price Trends
September market statistics just released by NWMLS show the median price decreased just slightly for the month. The median price index dropped to $284,364 from last month’s figure of $284,863. We started the year at $276,158 though, so the annual appreciation rate is 4%. The price corrections that have been reported by the media do not appear to have hit hard in the Puget Sound.
This index is calculated by averaging the median sales price for the last six months. This reduces the impact of seasonal effects on the overall trend.
Market Activity
Listing inventory finally fell as September figures showed that the number of homes on the market dropped to 7687. This is a welcome trend for sellers who must compete for buyer activity. Home sales showed a reduction of 27%. There were 723 listings sold during the month, down from 985. This shows that inventory, measured in months, stands at a 10.5 month supply.
Financial Market Trends
Interest rates showed some volatility during the month as the financial markets responded to an interest rate cut by the Federal Reserve. Rates initially dropped then firmed up at month’s end to average 6.125% for the month. News of mortgage company failures is being replaced by headlines about foreclosures. Appraisers are beginning to show their caution with low appraisals.
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