Published: Friday, December 5, 2008
Home sales off 54% from 2007
Home sales in Snohomish County dropped dramatically in November, falling by 54 percent in comparison to year-ago figures, the Northwest Multiple Listing Service reported Wednesday.
Many people stopped buying homes last month, just as they stopped buying cars and consumer goods. The sales shutdown was true throughout the region as sales dropped 47 percent in King County and 41 percent in Pierce County.
The numbers didn't surprise Nathan Gorton, executive officer of the Snohomish County Camano Association of Realtors.
"I would like them to be better," Gorton said. "I think they show what everybody knows. Right now there's a lack of confidence in the market place. I think everybody is holding their breath to see what Congress will do."
The concerns also affected pending sales, which dropped 25 percent in Snohomish County and 30 percent in King County. That means the numbers will also be low in December, which is already one of the worst months for sales.
"The numbers are certainly of concern and larger than I had expected," said Jason Bloom, chairman of Elliott Bay Mortgage, which has offices around the Puget Sound area, including Lynnwood. He's the president of the Washington Association of Mortgage Professionals.
Bloom said some homeowners are taking advantage of lower interest rates to refinance their mortgages, but few people seem to be buying homes.
"What you are seeing is that people are waiting for home values to drop more," he said.
Economic uncertainty has made potential buyers more hesitant than they should be, Gorton said, adding that people need to remember that interest rates have been dropping.
"If you have a decent credit and down payment, you can get a loan," he said.
The supply of homes remains much higher than the demand in the housing market, Gorton said. That continues to bring down home values.
In Snohomish County, prices dropped by 7.46 percent from last year at this time. In King County, the prices fell by 5.44 percent. The drop in Island County was a little more -- 10.55 percent.
The combined median price for condominiums and single-family homes in Snohomish County was $310,000 in November.
"There are some tremendous deals out there because the inventory is really high," Gorton said.
Total listings in the county were 6,413 in November, exactly the same as a year ago. Sellers are hoping the numbers start falling here to reduce inventory and help preserve home values.
Gorton said he hopes that home sales will pick up in spring. The slumping housing market is a root cause of the national economic crisis, he noted.
"It really shows how important housing is to American economy," he said.
An economic recovery won't happen until the housing market stabilizes, Bloom said. The question is: When will home values start going up again?
"I don't think anybody has a crystal ball on that," he said.
November home sales
SNOHOMISH COUNTY
Listings: 6,413, no change
Pending sales: 567, down 25.39 percent
Closed sales: 383, down 54 percent
Median price: $310,000
ISLAND COUNTY
Listings: 1,073, up one home
Pending sales: 52, down 22.39 percent
Closed sales: 48, down 36 percent
Median price: $304,000
Many people stopped buying homes last month, just as they stopped buying cars and consumer goods. The sales shutdown was true throughout the region as sales dropped 47 percent in King County and 41 percent in Pierce County.
The numbers didn't surprise Nathan Gorton, executive officer of the Snohomish County Camano Association of Realtors.
"I would like them to be better," Gorton said. "I think they show what everybody knows. Right now there's a lack of confidence in the market place. I think everybody is holding their breath to see what Congress will do."
The concerns also affected pending sales, which dropped 25 percent in Snohomish County and 30 percent in King County. That means the numbers will also be low in December, which is already one of the worst months for sales.
"The numbers are certainly of concern and larger than I had expected," said Jason Bloom, chairman of Elliott Bay Mortgage, which has offices around the Puget Sound area, including Lynnwood. He's the president of the Washington Association of Mortgage Professionals.
Bloom said some homeowners are taking advantage of lower interest rates to refinance their mortgages, but few people seem to be buying homes.
"What you are seeing is that people are waiting for home values to drop more," he said.
Economic uncertainty has made potential buyers more hesitant than they should be, Gorton said, adding that people need to remember that interest rates have been dropping.
"If you have a decent credit and down payment, you can get a loan," he said.
The supply of homes remains much higher than the demand in the housing market, Gorton said. That continues to bring down home values.
In Snohomish County, prices dropped by 7.46 percent from last year at this time. In King County, the prices fell by 5.44 percent. The drop in Island County was a little more -- 10.55 percent.
The combined median price for condominiums and single-family homes in Snohomish County was $310,000 in November.
"There are some tremendous deals out there because the inventory is really high," Gorton said.
Total listings in the county were 6,413 in November, exactly the same as a year ago. Sellers are hoping the numbers start falling here to reduce inventory and help preserve home values.
Gorton said he hopes that home sales will pick up in spring. The slumping housing market is a root cause of the national economic crisis, he noted.
"It really shows how important housing is to American economy," he said.
An economic recovery won't happen until the housing market stabilizes, Bloom said. The question is: When will home values start going up again?
"I don't think anybody has a crystal ball on that," he said.
November home sales
SNOHOMISH COUNTY
Listings: 6,413, no change
Pending sales: 567, down 25.39 percent
Closed sales: 383, down 54 percent
Median price: $310,000
ISLAND COUNTY
Listings: 1,073, up one home
Pending sales: 52, down 22.39 percent
Closed sales: 48, down 36 percent
Median price: $304,000
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