Sandy Noll… Real Estate & More

According to the Northwest Multiple Listing Service, the 1,655 homes closed last month, June 2009, represent a 4% increase over the same month last year. This increase represents a two year high with the most closings since October 2007. Couple this increase in single family home sales with a decrease in median home prices ($395,000 for King County) and the positive signs of stabilization for the King County markets appear to have arrived!

This lower median sales price represents a full 12% year over year decrease. Pending sales have seen a dramatic 25% year over year increase. There has been some criticism of these pending sales as being more myth than reality. This criticism can be partially explained by short sales which are often accepted but take longer than a traditional sale to close.

This news begs the question, what is causing this increase? One explanation is that the often repeated mantra, ‘its time to get off the fence’ is being heeded by buyers. Another possible explanation is the $8,000 first time homebuyer tax credit. With the ability to monetize this tax credit many first time homebuyers are now able to overcome one of the most common hurdles to home ownership, the downpayment. Condo sales remain 18% below June of 2008 despite a 16% decrease in median condo sales price to $249,000 for the same time period. Despite the weaker condo numbers, pending sales in King County are up 25% year over year.