Karen Villa Schweinfurth, ABR, CRS, SRES, CyberStar

Pending sales still lagged year-ago volumes and the number of listings is up about 35 percent from January 2007, but MLS directors point to several indicators of rising activity, including:

• A significant increase in open house traffic
• Higher volumes of inquiries from first-time buyers
• Financing that is both "obtainable and inexpensive"
• More multiple offer situations

One broker even described the current market as the "best buying opportunity in four or five years."

"I have heard several reports of a dramatic increase in buyer activity," said Pat Grimm, owner/broker of Windermere Real Estate/Capitol Hill, Inc. "Buyers are anticipating a window of opportunity where prices are low, inventory is plentiful and financing is both obtainable and inexpensive," the MLS director noted, adding, "In Seattle, well priced and well positioned properties are getting multiple offers."

Across the Northwest MLS service area, which encompasses 19 counties, the price on last month's closed sales of single family homes and condominiums rose 1.05 percent, from $312,975 to $316,250. In King County, which accounted for about four of every 10 closed sales, prices increased nearly 4 percent.

Prices for single family homes (excluding condos) rose 1.3 percent from a year ago, climbing from $329,950 to $334,288. In the four-county Puget Sound region, only King County notched a gain, with prices rising from the year-ago figure of $429,495 to $435,000, an increase of about 1.3 percent.

Condo prices showed signs of softening after registering double-digit gains during most months of 2007. For the MLS overall, the median price for last month's closed sales was $249,950, down less than a percentage point (0.71 percent) from the year-ago figure of $251,745. In King County, where nearly 60 percent of condo sales occurred, prices dipped 1.6 percent, from $274,900 a year ago to $270,500.

MLS members reported 4,499 pending sales of single family homes and condos during January, improving on December's total of 3,950 pending sales. That volume is off about 31 percent from twelve months ago when brokers notched 6,522 pending sales.

On the listing side, members added 13,186 new properties to the inventory, bringing the month-end total to 41,498. That's about 35 percent more than the selection of a year ago when there were 30,700 active listings of single family homes and condos. It also marks the lowest level since April 2007, with the exception of December, when inventory typically shrinks. (At the end of 2007, the MLS reported 38,440 active listings.)

The number of single family homes rose about 31 percent from this time last year, while condo inventory surged about 61 percent. Of the condo listings, about one-third are newly built.

"We are starting to see more and more buyers who have been on the fence now making their move because of low interest rates, a good selection of homes, and confidence in the local economy," remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. "These buyers understand the local market and the fact that homeownership is not just a moment in time, but rather a long term investment in their future," he emphasized.

Recent interest rates cuts by the Federal Reserve Bank and the presidential campaign may also be factors, suggests Dick Beeson, broker/owner of Windermere/Commencement Associates in Tacoma. Cutting the discount rate has helped maintain low interest rates and so has the forthcoming election, with the candidates looking to grow the economy, some by tax cuts for small business, others by rebates, he observed. Beeson added he does not expect a stimulus package to have much direct effect on the local market, other than giving a sense of positive movement.

Agents are receiving more inquiries about buying homes than in the last several months, open house traffic has increased, the mood is elevated among buyers, with both entry level and mid-range homes getting a fresh look, according to Beeson. "Homes that are "spot on" in condition and pricing are receiving offers and going to closing," he reported.

MLS director Ken Bacon, associate broker at Windermere Real Estate/S.C.A. in Redmond, believes the Fed's rate reduction has and will accelerate buyer interest. He attributes the recent leveling off of the Seattle area market to an exodus of investor buyers and tighter mortgage qualifying standards that eliminated many first time buyers.

"The ongoing appreciation in King County is fueled by our good job market," Bacon commented. "This creates stability in the marketplace, changing the motive of buying to "the need for housing" and the pride of home ownership," he stated. Attractive mortgage rates and rising rental costs could also fuel sales, he noted, while emphasizing the job element is critical.

Bacon expects a pick-up in activity, starting mid first quarter, with local appreciation in the range of 3 to 8 percent through 2008, depending on location. He believes location will have a growing impact on appreciation as buyers face longer and more expensive commutes. Condos will also be an attractive option, he added.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 31,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties, mostly in western Washington, plus Grant, Kittitas and Okanogan counties in the central part of the state.

Statistical Summary by Counties: Market Activity Summary - January 2008

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(totals include King, Snohomish, Pierce & Kitsap counties)

State Labor economish Donna Thompson needed only a few words Tuesday to describe Snohomish County's economy in 2007. "We're smokin," she said of an unemployment report that showed employers in the county created 22,500 jobs last year.

Surprisingly, the amount was nearly equal to that of King County, the state's major job center, which added 23,400 jobs in 2007.

Thompson said the county's annual growth rate was 9.2 percent, more than four times the state average of 2 percent. The state created 77,700 jobs during the past 12 months. Snohomish County's contribution was nearly 29 percentof that total.

And our major contributor, Boeing. It's all due to the "787". Boeing and other aerospace firms in the county added 5,100 workers during 2007.

"We are attracting population and our labor force is growing. We are very fortunate to be in an area with a lot of high-paying manufacturing jobs" Thompson quoted.

Snohomish County's population count for April 20076 was 686,300. We are expected to reach around the 1,000,000 mark by 2020.

And you ask "why are people relocating here"? Here's your answer:

Snohomish County is located on Puget Sound, between Skagit County to the north and King County (and Seattle) to the south. Covering 2,090 square miles, it is the 13th largest county in total land area in Washington.

Snohomish County's varied topography ranges from saltwater beaches, rolling hills and rich river bottom farmlands in the west to dense forest and alpine wilderness in the mountainous east. Glacier Peak, at 10,541 feet, is the highest point in Snohomish County and one of the highest in Washington State. Sixty-eight percent of the county land area is forest land, 18% is rural, 9% is urban/city and 5% is agricultural.

Snohomish County enjoys a moderate year-round climate, with average temperatures ranging from about 75°F in July to about 33°F in January. The Olympic Mountains to the west, across Puget Sound, shelter the area from excessive precipitation coming off the Pacific Ocean.

However, that's our little secret - we aren't going to tell anyone about our little private corner of the world - now are we? That "proverb" came from years ago when Washington was just "a spec on the map" and the native Washingtonians didn't want anyone else moving into the State. The ploy was to tell all the people interested in moving here - "oh, it rains all the time here, it's miserable, you don't want to move here".

Well I relocated here in 1983 and that was the song. Then Californians started moving North because of our moderate year round climate, access to water and mountains, low population numbers and very affordable housing...........the rest is history.

Looking for housing in Snohomish County, please check: www.karensvillas.com for all your real estate needs.

Homes sold in 13 of 19 counties in December
in Northwest MLS System

December brought few surprises in housing activity around Western Washington, with above-normal precipitation and floods contributing to the expected seasonal slowdown, according to officials from Northwest Multiple Listing Service.

As December came to its soggy close (marked by a month with 25 days of precipitation for Seattle), brokers had an optimistic outlook, citing pent-up demand, positive job growth, stable prices, brisk activity at open houses, and other indications of an improving market.

Brokers reported 3,950 pending sales (offers made and accepted but not yet closed) system-wide during December, lagging November's total of 5,194 transactions. When compared to the same month a year ago, the number of pending sales dropped by about 31 percent (5,744 versus 3,950).

Prices overall were comparable to twelve months ago, with 13 of the 19 counties in the MLS market area reporting increases (including seven counties with double-digit gains). During the month, there were 4,634 closed sales of single family homes and condominiums with an area-wide median selling price of $313,325. That's down slightly (0.53 percent) from the year-ago median sales price of $315,000.

Comparing counties in the Northwest MLS market area, the median sales price ranged from a low of $146,500 in Grant County to a high of $594,500 in San Juan County. For the four-county Puget Sound region, the median sales price for last month's closed sales of single family homes and condominiums was $342,000.

For single family homes (excluding condominiums), prices slipped less than a percentage point, from the year-ago figure of $330,000 to last month's price of $326,950 (down 0.92 percent). In King County, the median sales price of $435,000 matched November.

For 2007, the median price for all homes and condos sold and closed by members of Northwest MLS was $325,000, a gain of 5.8 percent compared to closed sales for 2006.

Condominium prices continued trending upward, registering a 5.4 percent increase from year-ago figures. Area-wide, last month's condos had a median sales price of $252,900, which compares to a year-ago figure of $240,000. In King County, which accounted for 65 percent of the volume, the median sales price for December's closed sales of condominiums was $290,000, up more than 7.4 percent from a year ago when the median price was $269,950.

MLS members added 5,543 new listings to the inventory during December, slightly more than a year ago when they added 5,357 new listings. With those additions, the number of active listings of single family homes and condos at month end totaled 38,440. That's down from November's inventory of 44,399 active listings, but up almost 36 percent from a year ago when there were 28,307 residences offered for sale.

For the first week of January, the 30-year fixed rate mortgage rate was 6.14 percent, according to the Bankrate.com national survey of large lenders. One year ago, the mortgage index was 6.24 percent.

"Given the positive job growth, strong regional economic outlook and the fact that buildable land is still scarce, the return of a reasonably hot market is likely, making this an optimum time to buy," said Ron Sparks, a vice president at Coldwell Banker Bain in Bellevue.

To get the latest information on Snohomish County WA real estate, please call me at 425-308-3669 or visit KarensVillas.com. To receive a complimentary home value analysis, please visit WashingtonHomeValues.net.

Get The Facts - The foreclosure rates today in Washington State are the same as they were 10 years ago. Fewer than one percent of mortgages end in default in Washington state. As of mid-June, sub-prime, adjustable-rate loans represented 20 percent of loans nationally but just 6 percent of home loans in Washington. Real Estate is Local - listen to our radio ad.

You Ask Why - Home appreciation in Washington continues to be strong. Home prices have increased an average of 8% since the same time last year. Interest rates continue to be low. Our home market isn't keeping pace with the growth of the state's population, expected to increase 1.8 percent per year. The state's population will increase by nearly one million over the present decade and reach 6.8 million by 2010 (Washington State Office of Financial Management).

The key to stability in real estate is balance - we currently have about a five month supply of standing inventory). Six months is average. We are not in a market where multiple offers pushes a home's value above what the market is going for - we are in a normal market.

We are working with our County and City officials to adopt policies that increase housing availability and more importantly, affordability. We are making better use of our land by developing, "growing up", i.e. Everett's downtown core is removating old buildings and/or building new buildings to create multi-use projects to include residential, apartments and retail all in one.

As Washington REALTORS® our top priority is building communities that have a strong economy, attractive home choices, great schools and parks, safe neighborhoods and good transportation choices.

NOBODY KNOWS WASHINGTON REAL ESTATE LIKE A WASHINGTON REALTOR. Visit www.sccar.com to find your local REALTOR.

http://www.karensvillas.com for all your real estate needs.

The National Association of REALTORS® has published the results of its quarterly sales survey and found that the median home price continues to rise in most metropolitan areas. The median is a typical market price - meaning half of all homes sold for more, and half of all homes sold for less.

Lawrence Yun, NAR chief economist, said the data underscores the fact that all real estate is local. "Some metro areas are hot, while others are experiencing localized problems," he said.

The November sales statistics for King and Snohomish Counties will give us a better idea of our local market:

While the number of homes on the market in King County continues to increase, fewer of those home sold this November compared to November 2006. This November, active listings were up 32% while the number of listings sold decreased 22%. Year-to-date, the number of sold listings is 10% lower than it was this time last year.

King County is, meanwhile, experiencing a slight increase in sales prices. Although the increase for the month of November 2007 over November 2006 was negligible, the year-to-date average sales price was up 8% this year. The average days on the market for listings was up 25% both for the month and year-to-date compared with 2006.

Snohomish County continued to mirror, almost exactly, the market activity that King County experienced in November 2007. The number of active listings increased by 33%, but the total sales for the month decreased by 27% and were down 20% year-to-date compared with the same time in November 2006.

While the average sales price for the month of November 2007 was almost the same as it was in November 2006, the average year-to-date increased 8%. Market times for the month and year-to-date both increased about 30%.

Remember, as Yun said, all real estate is local and changes from month to month. To get the latest information on Snohomish County WA real estate, please call me at 425-308-3669 or visit KarensVillas.com. To receive a complimentary home value analysis, please visit WashingtonHomeValues.net.