Home sales down 31 percent in Snohomish County

A day after Forbes magazine declared the housing market in the Seattle area the most stable in the nation, local statistics showed that home sales in Snohomish County had dropped 31 percent from a year ago.

Is there a conflict here?

No, say the magazine and local housing officials.

“It looks like the market has kind of taken a deep breath and just corrected itself a little bit,” said Nathan Gorton of the Snohomish County Camano Board of Realtors.

The Northwest Multiple Listing Service, which keeps sales data for most counties in Western Washington, released its September numbers Friday.

What the numbers said is that homes available for sale in the county increased nearly 54 percent last month in comparison with September 2006. Pending sales, meaning homes that entered the sales process last month and didn’t complete it, dropped 37 percent. As mentioned above, closed sales dropped 31 percent.

Prices continued to rise, climbing 4.4 percent. The combined median sale price of single-family houses and condominiums, meaning half sold for more and half sold for less, climbed to $344,500 last month from $330,000 a year ago.

Gorton said the inventory amounts to about five months of home sales, which he calls a healthy number. “With the inventory out there, if you have your eye on three houses, you’ll be the successful bidder on one of them.”

As for price appreciation over the past year, Gorton said 4 percent is nothing to sneeze at. “I’m fine with 4 percent,” he said. “I hope to see single digits right now. It’s a good time to be a buyer right now.”

Gorton was glad to see the Forbes piece because he thinks there’s a lot of confusion of the local market because of all the national stories about a mortgage meltdown in much of the country.

“I talk to a lot of buyers’ agents whose customers are saying they just want to sit back right now because they don’t think it’s a good time to buy a home,” he said. “They think, ‘Oh my gosh, the market is falling apart.’ Nothing could be further from the truth.”

The Forbes piece ranked Seattle above places like Pittsburgh, Columbus, Ohio and Dallas, saying that there have been strong price increases here during the past 18 months and that appreciation at a slower pace is expected to continue into 2008. It also notes a lower housing inventory, strong sales and fewer high-risk loans, which means fewer buyers are expected to default anytime soon.

Its assessment is based on computer-prediction models developed with Moody’s Economy.com.

Mark Zandi, chief economist for Moody’s, didn’t say things would be great here, just that the models don’t predict the problems that are occurring in most of the country.

“It’s not like any of these markets are going gangbusters,” he said. “Even Seattle: It’s been very strong, but conditions are weakening and this year, at best, will be an OK year.”

Gorton agrees with that prediction.

“I call our market linear with bursts,” he said, explaining that means fairly gradual rises with periodic sharp increases. “We’re taking a deep breath and taking time to reassess where we are. It’s slowed down a bit, but I think we’re going to be OK.”

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, noted the nation’s “turbulent mortgage market” is hurting sales. But he noted that “interest rates are still low, the local economy is healthy and job growth is strong.”

One thing agents agree on is that the people who want to sell their homes need to price them realistically because there are plenty of homes out there. And homes need to be move-in ready, said Windermere spokeswoman Sonja Riveland.

“With all the choices out there for buyers, homes with deferred maintenance are sitting,” she said.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.