Eleven of the 17 counties in the NWMLS market area reported price hikes of 15 percent or more when comparing last month's sales to July 2005. In the four-county Puget Sound region, Snohomish County notched the sharpest price increase at 18.2 percent.

July marked a definite change in pace from previous months, according to Northwest MLS director Dick Beeson. While many people took the month off to enjoy the sun, Beeson said the most telling statistic for Pierce County is the surge in inventory, which is up almost 53 percent from a year ago.

"It's like a buyer woke up from a five year nightmare of no presents under the Christmas tree and discovered a tree brimming with choice gifts," said Beeson, a broker at Windermere Real Estate in Tacoma. “With an abundant selection, buyers are now picking and choosing,” he remarked.

Area-wide there are about 9,000 more listings now than at this time a year ago. Five counties (Island, Kitsap, Pierce, Skagit and Thurston) reported inventory increases of 50 percent of more from twelve months ago. At month-end, NWMLS brokers represented 31,910 active listings of single family homes and condominiums; a year ago, there were 22,839 listings.

D'Ann Jackson, president of the Seattle-King County Association of Realtors®, expects the market will continue to level out. Commenting on the slower sales, she said "I think buyers who entered the market a little later this spring already bought or got frustrated with the lack of inventory and multiple offers. Move-up buyers are having difficulty finding the right properties,” she observed, “noting some are spending more to get at best something comparable, and others may be waiting until after vacation to resume their search,” she added. "We're still clicking along at a good pace – and I think the key for sellers right now is accurate pricing," Jackson remarked.

Beeson is equally optimistic, even though he expects fewer sales in 2006. "My guess is we'll be off about 10 percent from last year, which, when you add it all up, is still one of the top years in recorded history for our region. People are still moving here,” he noted, “whether relocating for jobs, retirement homes or vacation property.”

Economists expect a "soft landing," for the housing boom. A recent government report showed investment in residential construction accounted for about 6.1 percent of the economy – close to a 50-year high. Even accounting for declining activity, analysts say June's rate of home sales is 40 percent above the 20-year average.

This information is from the Northwest Multiple Listing Service which is the largest full-service MLS in the Northwest. Based in Kirkland and owned by its member brokers, it currently encompasses more than 2,000 companies with approximately 27,000 sales associates. 

Referrals are a “very” important part of my business. Please let me know of anyone that you know who may be considering Buying or Selling real estate – or please give them my name and contact information!

Thank You!  Bob Chapman 

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