Has the Housing Market Recovered?
Members of the Northwest Multiple Listing Service (NWMLS) reported strong gains in home sales during the month of February 2010, with brokers noting several encouraging signs for a busy upcoming spring real estate season. Consumers are continuing to show improved confidence, and the looming deadline for the home-buyer tax credits are contributing to the boost in activity, according to the officials at the NWMLS office.
What a month! Pending sales (offers made and accepted, but not yet closed) jumped nearly 45 percent last month compared to February 2009, which marks the 11th straight month of month-over-month increases. Twelve of the 21 counties in the MLS market area reported double-digit gains in pending sales, led by San Juan County (up 85.7 percent), Snohomish County (up nearly 71 percent) and King County (up nearly 63 percent).
Closed sales also outperformed last February’s totals, rising 33.5 percent. Real estate agents counted 3,214 completed transactions last month, up from the 2,407 closed sales for February 2009.
There were 10,663 new listings added to the NWMLS inventory last month, bringing the total number of active listings in the system to 36,350. That total is down 7.5 percent from February 2009’s count, making this a more balanced market favoring neither buyers nor sellers.
Move-up buyers are accounting for some of this surge in activity. Real estate brokers credit the combination of a $6,500 tax incentive for qualified repeat buyers and falling interest rates on jumbo loans as factors in generating activity for this group of buyers.
"Over the past 90 days there has been a buildup of positive momentum in the housing market and we continue to see evidence that the tax credit extension/expansion is working," said J. Lennox Scott, chairman and CEO of John L. Scott, Inc.
Mr. Scott noted higher priced areas, such as Mercer Island, Redmond, and Issaquah, are seeing an increase in home sales – suggesting more move-up buyers are taking advantage of this tax credit. "Historically low interest rates continue to be a motivating factor which when combined with the tax credit give buyers a significant purchasing power advantage," he commented. Here is what Mr. Scott had to say when he stopped by my office for a visit last week:
Video taken by Jim Willner
Buyers with an agreed-upon contract by all parties by April 30, 2010, have until June 30 to finalize the home purchase and qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for existing home owners moving and buying a new home.
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King County: 4,122 new listings; 11,539 active listings; 2,621 pending sales; 1,255 closed sales; average price of closed sales: $429,288; median price of closed sales: $343,500.
Pierce County: 1,567 new listings; 5,609 active listings; 1,132 pending sales; 477 closed sales; average price of closed sales: $233,131 median price of closed sales: $217,800.
Snohomish County: 1,759 new listings; 5,177 active listings 1,133 pending sales; 574 closed sales; average price of closed sales: $297,372; median price of closed sales: $269,000.
NWMLS: 10,663 new listings; 36,350 active listings; 6,590 pending sales; 3,214 closed sales; average price of closed sales: $323,275; median price of closed sales: $260,000.
Compare these numbers with last month's report.