Sales of single family homes and condominiums continue to bounce back in Snohomish County, as lower prices and a federal tax credit spur demand.
“It’s picking up, thank God,” said Joan Longstaff, the owner of Joan Longstaff &Associates in Edmonds. “I’m seeing properties that have been for sale for a long time now selling, particularly in the condominium market downtown (Edmonds) and seeing listings that are priced right.”
Pending sales of homes and condominiums increased 91.21 percent in October over the same month the previous year, going from 626 to 1,197. Closed sales increased to 825 from 613, while the median price dropped 11.67 percent to $280,000.
“They’ve certainly got to be priced right. I think maybe investors are understanding with interest rates as low as they are we may have hit bottom,” Longstaff said.
The $8,000 tax credit for first-time home buyers helped spur the increase and its extension to April 2010 could help continue the trend of higher demand.
“I think the $8,000 credit motivated first time homebuyers. I’m seeing an enthusiasm in the marketplace, thank goodness,” Longstaff said.
Edmonds in particular has seen a boost in sales of condominiums downtown from buyers selling large homes in Seattle and elsewhere, Longstaff said.
“I’m just pleased to see the condominium market downtown moving — that’s always been a strong draw for Edmonds,” she said.
But the boost in sales is happening elsewhere too, she said.
“We have all kinds of communities under the Edmonds umbrella,” she said. “It’s the first time homebuyers are buying where they can afford. It’s an excellent time to buy. Interest rates are at a record low. Hopefully people are beginning to get that message.”
John L. Scott in Lynnwood has seen a similar increase the last four to five months.
“We seem to have made it through the time period when it’s quiet and there’s not much going on,” said Craig Forehand, managing broker at John L. Scott in Lynnwood.
Foreclosures, deals to avoid foreclosures and bank sales are all part of the mix right now.
“The market is active, it’s not seasonal. Traditionally, we’d slow down in summer,” Forehand said. “Once it’s started picking up in midsummer, it’s continued. Part of that is due to the tax credit.”
“Our prices overall are back to 2003 prices, Forehand said. “So they sound really good. We’re still getting used to the sound of 100s and 200s.”
Many single-family dwelling in Lynnwood are going for the low $300s. Condo sales are facing financing challenges in some cases, he said.
For more information on the tax credit, go to www.johnlscott.com/information-johnlscott-1.aspx.
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