EVERETT — Home sales in Snohomish County were good in May, but they’re expected to hit a serious slump this month now that the federal income tax break has gone away.
Agents sold 852 homes in the county last month, a nearly 28 percent increase from numbers a year ago. But pending sales dropped by nearly 32 percent, meaning a lot fewer deals will close in June, according to data released Friday by the Northwest Multiple Listing Service.
Tacoma broker Dick Beeson, a director of the listing service, noted that the National Association of Realtors reported that 58,000 first-time buyers bought homes in Washington state and used the federal tax credits that have now expired.
He said the purchases ending in April to meet the tax deadline generated an estimated $640 million in state revenue and $6.5 billion in state economic activity.
Sales now, he said, are “edging along” after hitting a torrid pace in April. He noted that most homes selling now are in the lower to medium price range.
Lennox Scott, chairman of John L. Scott Real Estate, agreed that sales have dropped, noting that’s to be expected.
“Leading up to its expiration, the tax credit caused a surge of home sales, but a surge can only be sustained for so long,” he said “What we’re seeing now is a natural adjustment.”
Scott said buyers need a breather, but he hopes that the economy will continue to improve and that home sales will revive as the pool of potential buyers replenishes itself.”
Even though sales have been strong in the county for the past several months, prices continued to fall in May. The median price for single-family homes and condominiums in the county was $272,000 in May, a drop of 9.3 percent from May 2009. Median means half the homes sold for more and half sold for less.
In King County, the median was $346,500, a 1.6 percent drop from last year.
In addition to low prices, buyers still in the market will find loan interest rates.
The average rate for a 30-year fixed-rate loan in the United States was 4.79 percent this week, close to the lowest amount of the year, according to mortgage giant Freddie Mac.
May home sales in Snohomish County
Listings: 5,621, down 0.6 percent
Pending sales: 790, down 32 percent
Closed sales: up 27.8 percent
Median price: $272,000, down 9.3 percent
Northwest Multiple Listing Service
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