Wednesday, July 15, 2009

Is the Market Heating Up???

Last week, The Seattle Times reported that June home sales were the highest in King County since October, 2007. Is this a sign that things are starting to re-adjust and people are feeling more comfortable jumping into the Real Estate Market? I think it's really encouraging, but these Summer months will tell. Many of the sales that closed were negotiated in April and May when interest rates were at a 40 year low. With the threat of a hike in interest rates looming, this may likely get buyers making offers so they get in on these low rates.

The housing market in Snohomish County showed signs of recovery in June, driven by first-time buyers shopping for homes at burst-bubble prices. The Northwest Multiple Listing Service reported that pending sales in June increased 30 percent over the same month last year, giving real estate agents a reason to hope that a full recovery isn't far away. More than 1,190 sales were pending in June, up from 915 last year. Pending home sales also increased in May and April in Snohomish County, compared to the same months in 2008. However, completed home sales increased less than 1 percent in the county compared to June 2008.

Nathan Gorton, Executive Officer for the Snohomish County-Camano Association of Realtors said, that the somewhat timid resurgence largely stems from first-time buyers looking to snatch up inexpensive homes and low prices. Closed condo sales were up 6.78 percent from June of 2008 -- further reinforcing the theory that buyers who haven't previously owned are driving the county's sluggish real estate recovery. The federal government's $8,000 tax credit for first-time buyers was the push many on-the-fence buyers needed, Gorton said. "About 50 percent of the market is first-time home buyers taking advantage of that $8,000 tax credit," Gorton said. "And they tend to gravitate toward condos, because they're usually the most affordable home on the market.

So, there you go! Some updated information on the "State" of the Market here in Western Washington. Let's hope it continues to heat up - get out there and enjoy Summer here in the Pacific Northwest. Until next week . . .

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