About Bellevue's Newport Shores

Pending Home Sales Rise 4.3% Across U.S.

Pending home sales rose across the U.S., according to the NAR's latest index. While sales have been slow across most of the U.S., this is a small sign of improvement. The Seattle market doesn't seem to have fared as poorly as much of the market lately.

Pending Home Sales Show Another Gain
Pending home sales have increased for the second consecutive month, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, a forward-looking indicator, rose 4.3 percent to 82.3 based on contracts signed in August from a downwardly revised 78.9 in July, but is 20.1 percent below August 2009 when it was 103.0. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said the latest data is consistent with a gradual improvement in home sales in upcoming months. "Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market," he said. "However, the pace of a home sales recovery still depends more on job creation and an accompanying rise in consumer confidence."

Although Yun expects a continuing steady rise in home sales from favorable affordability conditions and some job creation, he cautioned any sudden rise in mortgage rates could slow the recovery. "Current low consumer price inflation has helped keep mortgage interest rates very attractive this year. However, recent rising trends in producer prices at the intermediate and early stages of production, along with very high commodity prices, are raising concerns about future inflation and future mortgage interest rates," he said. "Higher inflation would mean higher mortgage interest rates. In the meantime, housing affordability is hovering near record highs."

The PHSI in the Northeast declined 2.9 percent to 60.6 in August and remains 28.8 percent below August 2009. In the Midwest the index rose 2.1 percent in August to 68.0 but is 26.5 percent below a year ago. Pending home sales in the South increased 6.7 percent to an index of 90.8 but are 13.1 percent below August 2009. In the West the index rose 6.4 percent to 101.1 but remains 19.6 percent below a year ago.

Source: NAR

Waterfront home sales on the Eastside continued to show strong gains in April. There were six significant waterfront sales last month on Lake Washington and West Lake Sammamish. During the same period last year, there were only two such sales.

King County waterfront home sales have doubled in the meantime, with 26 sales in April vs. 13 last year. Year-to-date sales were also exactly double the number of sales in 2009, at 82 sales vs. 41. Median sale prices of waterfront homes were down about 10% in April vs. last year, but year-to-date sales are actually up in price around 5% in comparison to 2009.

The trend on the waterfront continues to be more buyers, and more discounts on prices. The Newport Shores home on Cascade Key, listed below, was originally listed at $8.75 million in late 2008. I had a chance to tour it with some clients, and it's really a one-of-a-kind property, with 200 feet of a radius waterfront looking out on Lake Washington.

At the time, the price seemed fair based on comparables, but its final selling of $6.4 million represented an overall 27% reduction (over two years). This is higher than the general Seattle market's reduction in the past two years, but represents the challenges of selling ultra-luxury homes in the current market.

Eastside Waterfront Home Sales, April 2010:

Address City Beds Baths SqFt. Sold Price

6827 Ripley Ln N Renton 3 2.75 2950 $1,050,000
2458 W Lk Samm Pkwy NE Redmond 4 3.25 2800 $1,169,000
2850 W Lk Samm Pkwy NE Redmond 3 2.75 3000 $1,448,000
3234 W Lk Samm Pkwy SE Bellevue 4 3.25 3620 $1,525,000
11069 Champagne Pt Rd NE Kirkland 4 4.5 4570 $2,125,000
94 Cascade Key Bellevue 5 5 7908 $6,400,000

Current Listings:
Seattle Homes For Sale
Seattle Waterfront Homes
Seattle Houseboats and Floating Homes

Sam DeBord is a licensed real estate broker with SeattleHome.com, a division of Washington State Realty, LLC. He is a member of the Seattle-King County Association of Realtors and a Green-Certified Pro.

The Northwest Multiple Listing Service did not compile or publish this information. Some new construction and unlisted home sales are not included in MLS data.