It’s time once again for the monthly reporting roundup, where you can read my wry commentary about the news instead of subjecting yourself to boring rehashes of the NWMLS press release (or in addition to, if that’s what floats your boat).
To kick things off, here’s an excerpt from the NWMLS press release:
Sales volume, home prices around Washington state rising amid inventory shortages in many areas
The dinosaur represents rising interest rates, raining down the terror of double financial impact on the hapless homebuyer… or something.June may have been cooler and wetter than normal, but weather did not seem to deter home buyers and sellers around western Washington. “Close-in Seattle neighborhoods have been experiencing the most intense buyer activity since 2006,” one broker remarked.
Northwest MLS directors credited several factors for contributing to brisk activity, with many of them mentioning inventory shortages. “Consumers bothered by the lack of inventory are ready to make sure they do not miss out on the shift in the market,” stated MLS board member Darin Stenvers, office managing broker at John L. Scott in Bellingham.
Frank Wilson, another MLS director, believes a unique aspect of this market is “artificially low interest rates” and said waiting to buy a home “could result in a double financial impact.”
Wow, some amazing logic on display there. Lack of selection is causing people to buy a home so “they do not miss out”? And you’d better buy quick before rates go up! It’s not like real estate agents have been using that line for the last decade or so.
Read on for my take on this month’s local news reports.
Eric Pryne, Seattle Times: King County median home price up 10 percent over year ago
King County house prices saw a double-digit increase in June — the first time that’s happened in nearly five years, according to statistics released Thursday by the Northwest Multiple Listing Service.
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“The numbers are even more positive than I had anticipated they would be,” said Glenn Crellin, associate director for research at the University of Washington’s Runstad Center for Real Estate Studies.
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What’s behind the turnaround? Analysts pointed to several factors.For one, the mix of homes that are selling has shifted. In February bank-owned houses — usually lower priced — accounted for nearly 23 percent of all single-family sales in King County, according to online brokerage Redfin.
Last month? Less than 10 percent.
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Crellin said he expected the “shadow inventory” of foreclosed houses would have had a bigger impact on home prices by now.“It just isn’t becoming as big a problem as I expected it would be,” he said.
Kudos as usual to Eric, taking the time to talk to multiple sources and try to understand what’s really going on in the market instead of just parroting the NWMLS press release, as some other reporters have been prone to do.
Aubrey Cohen, Seattle P-I: King County house prices rise by double digits
A dearth of houses for sale in June and fewer bank-owned listings helped push King County house prices up by double digits for the first time since the housing bust, according to a new report.
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There’s a “critical shortage of listings,” particularly under $500,000, said Mike Skahen, the owner/designated broker at Lake & Co. Real Estate in Seattle. “It is not unusual for more than 50 buyers to come through open houses, and it’s become common now to hold listings open on both Saturday and Sunday.”The heating market hasn’t renewed the buy-at-all-costs frenzy of a few years ago, agents said.
“What we find interesting today is the move away from a home being just an investment, but rather a long-term look at a specific neighborhood and how it complements a lifestyle,” Moorhead said. “Everyone we have interviewed still feels real estate is one of the best investments one can make, but they also realize it too has a downside. Therefore, you just cannot throw caution to the wind anymore.”
Really? After the biggest housing bust of all time “everyone still feels real estate is one of the best investments”?!? Unbelievable. Nothing will get through to some people, it seems.
Kurt Batdorf, Everett Herald Business Journal: Inventory shortages push up home prices
A shrinking inventory of available homes has started to drive up median sales prices and volumes of single-family residences in Snohomish County.
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Snohomish County’s available home inventory sank from 4,548 units in June 2011 to 2,359 units this June, or 48.13 percent, according to data released July 3 by the listing service. MLS data indicates there is less than a two-month supply of homes for sale in Snohomish and King counties. Most analysts believe a supply of five to six months indicates a balanced housing market.That tight inventory is driving sales activity upward.
Wait, what? Low supply is causing increased demand? Um, no. Low supply coupled with increasing demand is driving up prices.
Rolf Boone, Tacoma News Tribune: Home sales in county can’t keep May’s pace
After the Pierce County housing market posted an 8 percent increase in home sales in May, the market reversed course in June and fell more than 3 percent, according to data released Thursday by the Northwest Multiple Listing Service.
Although sales fell, a Pierce County real estate broker said it’s not enough of a decline to cause concern because the housing market overall continues to improve.
“The market has stabilized, and the market will pick up,” said Mike Larson, president and designated broker for Allen Realtors in Lakewood. “Buyers should look at it the same way.”
Here’s a crazy thought: Maybe buyers are getting sick of having nothing to choose from, and aren’t just going to buy whatever crap happens to be sitting around on the market?
Rolf Boone, The Olympian: Thurston home sales top 300 units for first time this year
Thurston County home sales rose nearly 6 percent in June, cracking 300 units sold for the first time this year, according to Northwest Multiple Listing Service data released Thursday.
Home sales rose 5.86 percent to 307 units last month from 290 in June 2011, while prices were flat in the same period, down 1.08 percent to $226,000 from $228,475, the combined single-family residence and condo data show.
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“It is improving, and we know it’s improving,” Van Dorm Realty managing broker Steve Pust said about the Thurston County housing market.“It feels like we’re at bottom,” he added, although he chuckled at his own comment because the bottom of the housing market has been a moving target for some time.
“Some time” as in, agents have been calling the bottom for nearly 5 years, basically since the first time prices showed signs of slipping.
(Eric Pryne, Seattle Times, 07.05.2012)
(Aubrey Cohen, Seattle P-I, 07.05.2012)
(Kurt Batdorf, Everett Herald Business Journal, 07.05.2012)
(Rolf Boone, Tacoma News Tribune, 07.06.2012)
(Rolf Boone, The Olympian, 07.05.2012)