Snohomish County home sales up 19% in July

Published 10:32 pm Wednesday, August 5, 2009

EVERETT — Home sales in Snohomish County rose in July for the second straight month, buoyed by a drop in prices and a federal tax break set to end in November.

Closed sales rose nearly 19 percent last month after rising about 1 percent in June, making agents hopeful that the real estate market had broken a two-year downward spiral.

“I feel encouraged about what’s happened during the past two months,” said Meribeth Hutchings, owner of Windermere Lake Stevens.

A total of 858 homes were sold in the county last month, compared to 719 in July 2008, according to the Northwest Multiple Listing Service.

A continuing fall in home prices certainly helped sales. The combined median price of single-family homes and condominiums was $292,000 in July, a drop of more than 12 percent from a year ago.

Hutchings said the government tax credit for first-time buyers was also a factor. “There seems to finally be a feeling of urgency to take advantage of this program before it goes away,” she said.

To qualify for the $8,000 credit, buyers need to close on their home sale by Nov. 30, said Cheri Brennan, spokeswoman for the listing service. The tax break applies to anyone who hasn’t owned a home for three years.

Hutchings estimated that about 40 percent of her sales in July were to people who qualify for the credit. Normally, she said, first-time buyers are closer to 25 percent of her business.

She said there are also a fair amount of people selling a home and stepping up to a larger, more expensive one.

“People had been selling and not buying,” she said of earlier this year. “Now, they’re selling a home for $250,000 that two years ago was worth $300,000 and buying for $500,000 a home that used to sell for $600,000. The move-up buyer is really in a good position.”

In addition to continued low prices and low interest rates, the number of homes available has fallen. There were 7,459 homes listed for sale in July, 24 percent fewer than the number available in July 2008.

Hutchings said that in general, people seem more confident about buying a home than they were a few months ago. “People are feeling more confident that now is the time to buy a home,” she said.

She said that potential buyers may not be certain that the market has reached its lowest point, but they’re more comfortable with what they’re paying these days.

According to the listing service, the median price for a single-family home was $299,990 last month, 14.3 percent less than it was a year ago. For condos, the median was $229,000, an 8 percent drop from July 2008.