Published: Wednesday, January 7, 2009
Recession, weather drag on home sales
Take what's typically the worst month for home sales. Add a recession. Then put in a couple weeks of terrible weather that paralyzed travel.
That's what real estate agents faced in December in Snohomish and Island counties. So it's no surprise that home sales were so terrible that they dropped by nearly 36 percent in Snohomish County and 20 percent in Island County in comparison to a year ago, according to statistics released Tuesday by the Northwest Multiple Listing Service.
"December typically has a slowdown in sales due to the holidays, but the recent snowfall compounded this seasonal slowing," said J. Lennox Scott, chairman and chief executive of John L. Scott Real Estate.
He and others in the business are hoping that sales will get a bit of a boost this month as a result.
Dick Beeson, a Tacoma broker, said continuing low interest rates should also help, noting they've fallen in the low 5 percent range and lower.
"This is a stimulus package we can count on and one that works," he said. "Banks are finally getting it and so are buyers as they realize their buying power has gone up."
In addition to falling sales, prices also dropped in December.
In Snohomish County, the combined median price for homes and condominiums was $307,000. That's a 9.6 percent drop from a year ago, when the median in the county was $339,675. For just single-family homes, the median was $318,694. For condos, it was $260,000.
With the lower prices, condos were definitely more popular with buyers last month. Sales fell, but only by 19 percent, much less that the drop for single-family homes. And prices for condos actually rose, increasing by 12.8 percent in comparison to year-ago figures.
That's what real estate agents faced in December in Snohomish and Island counties. So it's no surprise that home sales were so terrible that they dropped by nearly 36 percent in Snohomish County and 20 percent in Island County in comparison to a year ago, according to statistics released Tuesday by the Northwest Multiple Listing Service.
"December typically has a slowdown in sales due to the holidays, but the recent snowfall compounded this seasonal slowing," said J. Lennox Scott, chairman and chief executive of John L. Scott Real Estate.
He and others in the business are hoping that sales will get a bit of a boost this month as a result.
Dick Beeson, a Tacoma broker, said continuing low interest rates should also help, noting they've fallen in the low 5 percent range and lower.
"This is a stimulus package we can count on and one that works," he said. "Banks are finally getting it and so are buyers as they realize their buying power has gone up."
In addition to falling sales, prices also dropped in December.
In Snohomish County, the combined median price for homes and condominiums was $307,000. That's a 9.6 percent drop from a year ago, when the median in the county was $339,675. For just single-family homes, the median was $318,694. For condos, it was $260,000.
With the lower prices, condos were definitely more popular with buyers last month. Sales fell, but only by 19 percent, much less that the drop for single-family homes. And prices for condos actually rose, increasing by 12.8 percent in comparison to year-ago figures.
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