Seattle Residential: I Do That: Seattle Sales Melt But Prices Rise?

Seattle Sales Melt But Prices Rise?

Seattle Sales Melt But Prices Rise?

In This Post

A look past the headlines for Seattle and King County

It seems like the Seattle Times headline writer was trying to make two puns involving the July statistics for home sales in King County and the City of Seattle. Our temps today are only in the 50's. So little is melting, including sales numbers if you look at them with the proper perspective.

On August 6, 2010 the Seattle Times reported that King County Home Sales Melt in July, but Prices Rise. The article goes on the compare this month with last month and this year with last year. I think it would be more prudent to look at who is buying and at what is being sold.

A normal mrket

On April 30th, 2010, the first time buyer credit of $8,000 expired. It's only natural that there would have been a rush of homes sold so that first time buyers could qualify for that credit. These homes closed during May and June. And what homes do first time buyers usually buy? Well, entry level homes, the lowest priced homes on the market. So, it follows that the median price of homes sold would be lower.

Who's buying now? The normal cross-section of people in the market. That's why prices are higher. For people that are in a position to move because of life changes, they can put their well prepared home on the market and get an offer, and they can search current inventory and buy the home they are looking for. No incentives. Just normal business.

In the years to come I think it will be noted that 2010 was an uneventful year in the history of Seattle and King County real estate. There was not a feeding frenzy, but homes sold and life went on. How refreshing.

 

 

 

 

Glenn Roberts
Retired

 

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Comment balloon 7 commentsGlenn Roberts • August 07 2010 10:49AM

Comments

It's a great time to buy a home! With low interest rates and lower home prices, people should be out buying homes!

Especially a good time to invest in real estate. People need a place to live, and rent is heading up. Real Estate in more tangible than stocks and bonds. We need to get this message out.

Consumer confidence is low, and job reports are not good (expect government jobs), but private sector is lagging, expecially since our governments keep taking money out of the private sector to pay for programs and raising our taxes.

I hope this real estate market comes back

Please call Glenn Roberts for all of your Seattle, WA real estate needs

Glenn Roberts - Seattle Residential

Seattle, WA

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Lake & Company Real Estate

Address: 7801 Green Lake Dr N, Seattle, WA, 98103

Office Phone: (206) 524-3665

Cell Phone: (206) 478-3665

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Posted by Paul Walker, Scott AFB IL Area Realtor (Equity Fifty Five Realty, LLC) about 8 years ago

Glenn - I love how you point out the nuances of the Seattle real estate market.  This kind of information is critical to someone buying or selling their home.  These little bits of information can amount to tens of thousands of dollars in equity and appreciation when considered before buying in a particular neighborhood.  If I buy in Seattle you are undoubtedly my choice of Realtor!

Posted by Nevin Williams, Raleigh Mortgage Pro (Fairway Independent Mortgage) about 8 years ago

Paul - Thins are looking good.

Nevin - As always, being in the trenches gives an immediate perception. Thank you.

Posted by Glenn Roberts (Retired) about 8 years ago

Glenn - This sounds familiar. It is pretty much the same thing in my region of MA. Sales are down, but prices have risen and we are starting to see a mix of price ranges going under contract vs. just the entry level homes. A bit refreshing, but hopefully sales will pick up in the months ahead.

Posted by Judy Jennings, Broker - The Lanterns at Warren Woods - Ashland MA (The Green Company) about 8 years ago

Judy - I think it is happening in many places where short sales and REO's aren't the main things moving the market. There will be more sales of fewer agents.

Posted by Glenn Roberts (Retired) about 8 years ago

Glenn - In our market here, the sales are up but the prices are still down.  A perfect time to buy.

Posted by Rosalinda Morgan, "The Rose Lady" about 8 years ago

Rosalinda - It's necessary to find what's working in a market, and then make it work for you.

Posted by Glenn Roberts (Retired) about 8 years ago

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