KIRKLAND , Wash. ( Nov. 7, 2006) – Not everyone spent the month of October campaigning. Nearly 12,000 homeowners around western and central Washington state put their homes on the market last month and 8,567 owners accepted offers on their properties, according to the latest figures from Northwest Multiple Listing Service.

October's activity was similar to September when brokers reported rising inventory, higher prices and fewer pending sales compared to a year ago.

MLS members reported 11,910 new listings of single family homes and condominiums during October, about 500 more than twelve months ago.

With those additions, the inventory at month end stood at 36,282 listings. That total encompasses 19 counties and marks a 48 percent increase in active listings from a year ago. (Starting with October, NWMLS is reporting data for Clark and Pacific counties; previously, transactions in those areas appeared in the "Other/Out of area" segment of the monthly report.)

"When it comes to current market conditions, it's important to keep things in perspective," cautioned Lennox Scott, a real estate broker/owner.

"Housing sales are down, but this has created a greater balance in the market between buyers and sellers," Scott remarked, adding, "Since we've come off of the frenzy market of the past year, buyers have more selection, there's less competition for homes and interest rates are still low. Home prices continue to appreciate in most areas and we're on track to have the third most productive year in the history of real estate."

System-wide, the median price for a home that closed last month was $315,000. That is $28,000 more than a year ago, an increase of about 9.8 percent. For a single family home (excluding condominiums) the median selling price was about $332,000; for a condominium the median price was $243,450.

In King County, which accounts for about four of every 10 sales in the MLS service area, the median price of a single family home (excluding condominiums) rose 12.8 percent, increasing from $390,000 a year ago to $440,000 for sales that closed last month. Condo prices jumped 20.8 percent, climbing from a median selling price of $215,000 twelve months ago to last month's figure of $259,700.

For most counties in the Northwest MLS market area, price gains from a year ago tended to be in the range of 9-to-11 percent.

Every county experienced a double-digit buildup in inventory and all but three counties reported dips in pending sales.

"The evidence looks pretty convincing that the market has corrected itself and we are experiencing a tilt to the buyers' side in the arena of negotiations," observed NWMLS director Dick Beeson. This "gentle incline," as he described it, presents some good opportunities for buyers, particularly in areas like Pierce County where the selection is about 50 percent larger than a year ago.

Overall, traffic has been steady at open houses and "perfect" properties still get multiple offers, according to Beeson a broker/owner at Windermere Real Estate in Tacoma.

"Knowing 2005 was the zenith year in real estate sales, having an adjustment this year was to some degree expected," Beeson noted. Nonetheless, he expressed some surprise at the growing ratio of vacant homes that are currently on the market. He believes this could be the result of "natural" vacancies from job transfers and buyers who are moving up or downsizing as well as some selling by investors.

Another NWMLS director, Ken Bacon, a broker at Windermere Redmond, expressed little worry about the slippage from last year's record-shattering sales volume. "The 9 or 10 percent decline in pending sales from the boom year of 2005 illustrates the demand for housing in the Seattle area remains strong," he commented.

Appreciation continues because of this demand, according to Bacon, but he emphasized "Pricing is critical as the market now allows buyers time and options prior to making a commitment."

"We are still seeing some multiple offers in price ranges between $300,000 and $800,000 depending on the neighborhood, house, and location," Bacon said. Contingent sales are also being written, he reported, but said in his experience the first buyer is often bumped by a second buyer within a couple of weeks.

Condominiums continue to fuel demand among entry level buyers and downsizing sellers, according to Bacon. The combination of tight inventory, close-in locations and sought-after amenities is sustaining demand and creating some bidding wars.

In King County, there is slightly more than a two month supply of condominiums (2.3 months) to meet demand at the current pace of sales; for single family homes there's a 3.2-month supply. (Nationwide, there was a 7.3 months supply of existing homes for sale nationwide at the end of September, according to the National Association of Realtors® .)

Bacon described open house activity as "steady but not strong," pointing to inclement weather, weekend sports activities and growing popularity of computer tours as factors that affect open house visits.

Asked about "hot" neighborhoods for his office in downtown Redmond, he said properties that combine views, acreage and good locations typically draw multiple offers. Close-in communities such as Marymoor Heights (if priced under $800,000) and Bridle Trails (if priced under $1 million) and affordable communities such as Education Hill are experiencing high demand among buyers.

Bacon expects some seasonal leveling will continue during the fourth quarter and predicts election results will have no impact on housing activity. He believes the area's strong economy, good prospects for job growth and stable interest rates will continue to fuel the local market.

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. Together, they serve 17 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state. NWMLS recently added service to Clark County with the opening of an office in Vancouver.

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 

4-COUNTY PUGET SOUND REGION PENDING SALES (SFH + Condo combined) (totals include King, Snohomish, Pierce & Kitsap counties)
	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	3706	4778	5903	5116	5490	5079	4928	5432	4569	4675	4126	3166
2001	4334	5056	5722	5399	5631	5568	5434	5544	4040	4387	4155	3430
2002	4293	4735	5569	5436	6131	5212	5525	6215	5394	5777	4966	4153
2003	4746	5290	6889	6837	7148	7202	7673	7135	6698	6552	4904	4454
2004	4521	6284	8073	7910	7888	8186	7583	7464	6984	6761	6228	5195
2005	5426	6833	8801	8420	8610	8896	8207	8784	7561	7157	6188	4837
2006	5275	6032	8174	7651	8411	8094	7121	7692	6216	6403

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