Everett, Wash.
Published: Tuesday, September 11, 2007

Home sales sag, but prices remain up

But prices rose far less than previous double-digit rates

By Michelle Dunlop, Herald Writer

 EVERETT — The number of homes listed for sale in Snohomish County mushroomed in August amid slow sales, though real estate prices remained slightly above this time last year.

In case there was any doubt the hot market for homes has cooled, consider this: There were almost 63 percent more single-family houses and condominiums on the market last month than a year ago, according to the Northwest Multiple Listing Service figures released Monday. Sales dropped 25 percent compared with the previous year.

And the days of double-digit percentage rises in home prices every year may be gone, too. In August, the combined median price for houses and condos was $352,475, about 4 percent above August 2006.

"The market is adjusting to a slower but steady pace," Dick Beeson, director of Northwest MLS, said in his discussion of the new figures.

He noted savvy buyers are finding real values because they know motivated sellers are more flexible than they've been in a long time.

In Snohomish County, the number of closed sales for single-family homes, which had a median price of $375,000, dropped 30 percent in August. Last year's median price was $358,875.

The county's condo market, which has held up in recent months despite the overall cooling trend in the housing market, may finally be slowing as well.

Through August, 1,866 condos had sold in 2007, compared with 1,872 at the same time last year. After a 7 percent increase in the number of condos sold during July compared with the previous year, sales dropped nearly 11 percent in August.

The median condo price of $242,639 was up more than $27,000 from last year, but lower than the $255,000 median price seen in July. The number of condos listed for sale ballooned by nearly 129 percent.

Nathan Gorton, with the Snohomish County-Camano Island Association of Realtors, says the new figures demonstrate that Snohomish County is not "condo county," as many might believe.

"There aren't nearly as many condos available as there are single-family homes," Gorton said.

Snohomish County has a ratio of approximately six detached homes to every one condo on the market, which might explain why single-family home prices are growing at a slower rate.

Single-family home prices would have to drop significantly, however, to compete with more moderately priced condos.

For the year, single-family home sales in Snohomish County lag behind last year's totals with 7,733 closings reported in 2007 compared with 9,636 in 2006. There were 6,841 homes and condos on sale in Snohomish County at the end of August.

And that isn't bad news if you're in the market to buy.

"I think it's a great buyers' market," Gorton said.

In Island County, the number of houses and condos for sale went up 27 percent, and pending sales were down 25 percent. The combined median price was $330,000, up 11 percent from a year ago.
© 2009The Daily Herald Co., Everett, WA