Here in the Seattle area we have enjoyed a really great market until July or August of 2007, unlike the rest of the Country. The big story is in the fewer number of sold property, the higher and growing numbers of property for sale. But in reality what we are looking for is for the reduction in volume to slow down or stablilize. Unfortunately, no signs of that happening yet.
The rate at which sales are getting few is going higher. In the 4th quarter when the slowdown started due to the mortgage and credit crisis, volume dropped to about 29% lower than the same quarter in the previous year. In the 1st quarter of 2008 the condo market dropped to about 38% compared to the same quarter of the previous year and in the recently closed 2nd quarter that drop expanded to 47% compared to the same quarter in the previous year.
There are some stories floating around about the market getting better because more property sold in the second quarter than in the first quarter. That's called "grasping at straws". In reality, the 2nd quarter was by far worse than the first quarter, relatively speaking.
We continue to look for signs that the market will stabilize. When I see a sign I'll let you know...but in the meantime don't believe everything you read because it just ain't so.
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