Home sales exploded in Snohomish County and throughout the Puget Sound region last month as buyers scrambled to take advantage of continued rock-bottom interest rates.
The number of homes sold here in April increased by 28 percent over year-ago figures — 1,190 compared to 928 in April 2002.
Pending sales — deals begun last month that failed to close — also went through the roof, increasing by nearly 37 percent in comparison to last year.
King, Pierce and Kitsap counties also had double-digit pending sales.
Windermere broker Vern Holden, who owns the Mill Creek office and several others in King and Snohomish counties, said he’s experiencing his best spring in 8 years.
He attributed it to three things: low interest rates, a sharp rise in investment purchases and the psychological satisfaction of home ownership.
"The first thing I attribute it too is the rates being as low as they are — the affordability factor," Holden said.
Lenders are offering 30-year mortgages at rates averaging 5.7 percent last week, just slightly above the record low.
That means that despite rising prices, more people are able to buy, Holden said.
"An entry-level home for people used to be $180,000 to $200,000," he added. "We’re now seeing them at $200,000 to $240,000. The reason is that builders have to pay more for the land, but they are also putting in more amenities."
The combined median price for single-family homes and condominiums in Snohomish County in April was $222,950, up 8.76 percent from the $205,000 median of a year ago. Median means half the homes sold for more and half sold for less.
For single-family homes alone, the median price was $233,000. For just condos, it was $159,000.
In King County, the combined median price was $267,210. For single-family homes alone, it was nearly $290,000.
The disparity in price sent many people who work in King County into Snohomish County to buy a home, Holden said.
"I think an awful lot of people are being squeezed out of other areas either from an affordability standpoint or an availability standpoint," he said. "If you have a home in Shoreline or anywhere else in north King County, it’s snapped up in days. Homes in (Seattle’s) Greenlake are gone in hours."
The single-family homes sold in Snohomish County in April spent an average of 60 days on the market, compared to 53 a year ago. It took about 64 days to sell a condo here last month, compared with 50 in April 2002.
The most expensive homes are in southeast Snohomish County near the King County line, where the combined median price for homes and condos is $290,000. Despite the high price, homes there sold relatively quickly — within 58 days.
The least expensive part of the county is in the Arlington and Stanwood areas, where the median is $188,438. These homes also took the longest to sell, spending an average of 67 days on the market.
In Island County, the median price was $176,381. The 110 homes sold there in April spent an average of 103 days on the market.
Holden said that while sales were particularly strong in April, he doesn’t think those numbers were a fluke.
"People are buying houses because it’s a good investment," he said. "The final factor is that in times of uncertainty, people nest. I think the psychology of it means more to the public than the cold hard facts."
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