Gray skies, a smaller number of homes to choose from and continuing price increases didn’t stop people from buying homes in November.
Despite a significant drop in available listings, November home sales rose nearly 30 percent in Snohomish and Island counties, the Northwest Multiple Listing Service reported Monday.
Windermere broker Vern Holden said he thinks the strong sales may be driven by two factors.
“I think people are becoming leery of (interest) rates going up,” he said. “And the economy here locally has improved. I think it’s causing potential buyers to feel good about the job market. And they’re jumping on the (home purchase) bandwagon because they don’t know how long the rates are going to be as low as they are.”
The listing service, which represents brokers in 15 Washington counties, reported that sales were strong throughout Western Washington despite shrinking inventory.
In Snohomish County, the number of homes on the market dropped to 3,530, a 16.5 percent decrease from November 2003.
Despite a drop in selection, prices rose 9.3 percent in Snohomish County, where the median was $246,000, and 16.5 percent in Island County, where the median was $222,000. Median means half the homes sold for more and half sold for less.
Those were the combined figures for single-family homes and condominiums.
For single-family homes alone, the median price was $259,725 in Snohomish County, up 10.5 percent. For condos, it was $169,950, up 7.5 percent.
Appreciation was even higher in Pierce County, where prices were up 14.4 percent from a year ago.
The continuing rise in prices may actually be helping the market, Holden said.
“I really think people feel homes are a better investment than other things,” he added.
While sales were strong last month, pending sales were even stronger. In Snohomish County, sales that were begun but didn’t get through the closing process, were up 31.9 percent last month. In Island County, pending sales were up 53.5 percent.
The strong number of pending sales bodes well for December, typically one of the lowest sales months of the year.
Holden said sales usually drop after Thanksgiving and stay lower through the end of the year because sellers “don’t want people traipsing through their homes during the holidays.”
Asked about the continuing drop in available homes, Holden said he wasn’t concerned.
“Part of that is the seasonal nature of the holidays,” he said. “But there is a lot of building (in Snohomish County) that hasn’t hit the market yet. I think a lot of builders are holding back and waiting to see what happens next year so they can set their prices.”
Herald writer Mike Benbow: 425-339-3459 or benbow@heraldnet.com.
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