About Edmonds' Edmonds Bowl

The Northwest Multiple Listing Service reported that in October 2009, the number of pending sales increased 63 percent as compared to the same month in 2008. At the end of October 2009, there were 38,159 active listings, a drop of 17.4 percent as compared to the same month one year ago.

In King County, closed sales were up 33 percent as compared to closed sales in October 2008. The median price of sold properties in King County in October 2009 was $377,5000, which was down from the $392,000 median price from October 2008. In Snohomish County the median prices of sold homes was $292,725, which was 12.2 percent lower than the median price from October 2008.

The sales of higher priced homes are increasing as buyers are taking advantage of soft prices. Higher end properties are selling for a substantial discount when compared to 2005 prices. As an example, a home in downtown Edmonds, that sold for $800,000 in 2005, can now be purchased in the range of $580,000.

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As reported by the Northwest Multiple Listing Association, sales of residential real estate were up in May 2009, with pending sales increasing at a double digit pace. Prices are starting to stabiize.

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Here is the complete article as reported by the NWMLS:

Inventory shrinking, sales rising, prices stabilizing in some Northwest MLS areas

KIRKLAND, WA, June 4, 2009 - Waiting longer to buy a home is not likely to pay off, according to Northwest Multiple Listing Service director Kathy Estey after reviewing reports summarizing May activity. Estey pointed to shrinking inventory (about 20 percent fewer listings than a year ago), double-digit increases in the number of pending sales (up 17.7 percent from a year ago), solid open house activity, and signs of stabilizing prices (eight of the 19 counties in the report show price gains since January) as indicators of an improving market.

Northwest MLS brokers notched 7,160 pending sales during May. That total out-gained the year-ago tally by 1,075 transactions (up 17.7 percent) and improved on April's total by 242 sales for a 3.5 percent increase. For the four-county Puget Sound area, pending sales jumped 21.5 percent from a year ago, rising from 4,526 to 5,498 transactions.

Buyers had fewer choices during May than at this time a year ago. At month-end, member-brokers reported 41,318 active listings throughout the NWMLS service area. A year ago, there were 51,817 active listings. Current inventory includes 11,278 single family homes and condos that brokers added during May. For the same month a year ago, brokers added 14,176 new listings to inventory.

Estey, the managing broker at the Bellevue Downtown office of John L. Scott Real Estate, said affordable homes inventory is down to the levels of a normal market and reaching for a sellers' market. "Multiple offers are common in the under $400,000 range when the home is priced well, shows nicely and is marketed professionally," she remarked. "Buyers who are waiting for prices to come down more have missed the bottom," Estey believes.

Close in markets are the most active, with rural areas still lagging, but Estey says there is now some activity where little to none had existed in the first quarter. She believes prices have adjusted and completed new construction is still a very attractive purchase. "Builder inventory is being absorbed and there are fewer incentives. In January builders were giving away the farm, by March it was only half the farm and now they may just give away a chicken or two in order to make the deal."

Prices are showing signs of stabilizing, according to NWMLS data. Prices area-wide are down around 10 percent from twelve months ago, but a comparison to January shows price gains in eight of the 19 counties in the NWMLS report. System-wide, prices for single family homes and condominiums that closed last month are up about 2.6 percent since January. (See chart, page5.)

In King County, prices dipped about 12 percent from twelve months ago and have declined about 3.5 percent since January, but a closer look shows considerable variation within sub-areas. Prices in southeast King County fell 20 percent from a year ago, but since January are down only about 2.8 percent in north King County.

Condominium activity remains slow. Pending sales are down about 15 percent from a year ago. The median sales price of $240,000 is about 7.7 percent lower than a year ago. Condos in King County sold for a median price of $270,450 last month, which compares to the year-ago price of $287,925, a drop of about 6 percent).

Demand for high-priced homes is also tepid. According to Estey, there are "amazing opportunities for buyers with good credit scores and 25 percent down payment in the $900,000- plus marketplace."

"What we're currently seeing is real estate's version of Back to the Future," said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. He believes the combination of historically low interest rates, adjusted lower prices, and the $8,000 tax credit has created advantageous conditions for buyers that haven't been seen in decades. He noted sales in the four-county area continue to see double digit increases. "The more affordable markets are seeing a major boost which is leading to higher sales in the mid-priced markets and causing some increases in activity in the upper end," Scott remarked.

While cheered by the more vigorous activity, brokers note short sales and foreclosures continue to be a drag on the market. Such properties, often sold at deep discounts, may take extraordinary time to close once there has been mutual acceptance of an offer. (Note to editors: see explanatory note, p. .5)

NWMLS director Meribeth Hutchings, broker/owner of Windermere Real Estate/Lake Stevens Inc., said her office represents the buyer of a short sale that has been pending since October. The buyers who hope to purchase the home in Mukilteo have been very patient, but are becoming less so and are ready to move from the small apartment where they have been living with two large dogs. "Every time we think we are getting close, the lender changes what they want," Hutchings stated.

Another NWMLS director, Pat Grimm, reported similar experiences with a short sale. "We just closed one in Montlake on May 28 -- after the parties to the transaction reached mutual acceptance on Feb. 10, said Grimm, the owner/broker at Windermere Real Estate/Capitol Hill. (NWMLS defines a short sale as a transaction that does not produce sufficient funds to cover the existing monetary encumbrances against the property, closing costs, real estate commissions, and other financial requirements of closing.)

Tacoma broker Dick Beeson of Windermere/Commencement Associates said he has several agents deeply involved in handling short sales since Pierce County is so hard hit. He estimates around 25 percent of all properties for sale are either bank owned or short sale, and one of every three pending sales is one or the other.

"Short sales play a big role in what many buyers are looking for," according to Beeson, who also noted these buyers often fail to realize the extraordinary length of time it takes to close a sale - generally twice as long as a conventional sale. "Many get discouraged after 60 or 90 days and withdraw from a sale, never having received notice form the underlying lender what they are willing to take for the property. Many properties end up going to foreclosure because of the inefficiency of the banks in providing answers to offers," Beeson commented.

The recent uptick in pending sales, both locally and nationally, is a hopeful sign that we're putting the worst of the market behind us, suggests Ron Sparks, managing vice president at Coldwell Banker Bain.

"As you would expect in a recovering market, not all neighborhoods are uniformly performing, and for home sellers particularly, there are plenty of challenges that remain." However, he observed, "In many neighborhoods where just a few years ago broad affordability had all but vanished, lower prices, flexible terms and very low interest rates are pushing inventory absorption for single family homes to levels not seen since 2007."

Sparks said multiple offers for the best listed properties are occurring everywhere, including Pierce and Snohomish counties. "Improving sales in one neighborhood helps dwindle inventory, and can push motivated buyers to search for homes in other neighborhoods. This process typically occurs before prices start to stabilize," he explained.

Has that stabilization begun? "As my old Magic 8-Ball used to tell me: signs point to yes," according to Sparks, who noted eight counties served by the NWMLS have seen price increases since January. "The sales volume in my Bellevue office is now roughly 10 times what it was in February, with expanded sales in almost every price category. Overall inventory levels have dropped substantially as well. Does this mean the optimal time for home buyers to take full advantage of favorable market conditions has passed? I'd probably defer that to the Magic 8 ball also..."Ask again later."

Recent fluctuations in mortgage rates have brokers and buyers alike wondering if rates will escalate as inflation worries return.

"While rates now are wonderfully low, waiting has cost buyers. Loans recently available for 4.75% are now 5.25%," according to broker Kathy Estey. On a $400,000 loan, that means the monthly payment rises from around $2,128 to about $2,253 - and increase of nearly $125. She believes it would be wise to act now for the best selection in the affordable homes. "Who knows if we will see rates of 5% or below again anytime soon," she wonders.

Commenting on a recent report from the National Association of Realtors showing a third consecutive month of improving pending sales, Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. "Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market," he said. "Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers."

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 28,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties in western and central Washington.

Statistical Summary by Counties: Market Activity Summary - May 2009 (updated June 5)

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

2009 Median Prices, Closed Sales (SFH + Condo combined)

As I survey the current real estate landscape I can't help but be fascinated by how people are and in many cases aren't adapting to the new rules of the game.

Surely as Sellers have come to find that positive equity is no longer a given, many of them are asking, "what the heck am I getting for the commission dollars I am being asked to pay?"

A very fair question and unfortunately, not a lot of good answers have been forthcoming. I have been trying to come up with some legitimate answers for most of a year now, answers I can share with my fellow Realtors through the ROCS Alliance as we begin the work of regaining the position of trust and confidence our industry fought hard to engender for many years. We somehow managed to piss it all away in short order when the free money started flowing and the internet offered up the spoils of anonymous commerce.

As things change there is a certain order to what comes next as we work our way through this. The Illustration above shows how the obstacles to change eventually synergize to actually coalesce the change.

The first noticeable change is going to come about regarding People. There will be fewer of them in the real estate business and that is all for the good. Too many people fighting over too few deals seems like a good thing for the consumer right up until the problems we face now are compounded by the hangers on who cut corners and even more people get hurt by poor representation in a tough market.

The Second change will be one of Process. The process by which we communicate, the process by which people make decisions, the process of securing financing and the process of accountability. Marketing for instance, is an art form that requires certain skillsets and is best left to professional marketing people. Sales are the other end of the elephant. If an agent is in the back room printing flyers or shooting photos on their digital camera to save money, they are already falling behind and selling the client short. The issue of investment and return on investment as it relates to the expense of proper marketing will become a more prominent part of the discussion in the agent selection process.

An finally, we will see a gradual but deliberate change in culture. Confidence will be the commodity held most dear in the marketplace. Confidence in the information being provided, confidence in the loyalty being proffered, confidence that the agent has a plan and a verifiable track record.

Unless an agent can instill confidence in the processes and people that he or she surrounds themselves with, the current culture of suspicion and distrust directed towards the profession will linger and the question will remain, "what do I get for the commision I am being asked to pay and what are my other options."

The survivors of this shift will be those that are not only agents of Real Estate, they must become agents of Change.

Staging is all about creating a welcoming atmosphere and creating buyer interest in a home. Recent studies have shown that greater than 75% of home buyers use the Internet to search for homes prior to viewing them in person. Staging highlights the home, not the "stuff".

This just completed Edmonds home, built by Craig Reimer of Eaglewood Construction, was recently staged by SISTERS Interior Redesign. The craftsman style home features breathtaking views of Puget Sound from almost every room and is a wonderful home for entertaining. If you are in the neighborhood, stop by and take a look! The listing agents are John Bishoff and John Reich of Windermere Real Estate, Edmonds. The home is open on weekends, and they look forward to meeting you! 901 Cedar Street, Edmonds, WA 98020

Staging by SISTERS Interior Redesign, Edmonds, WA, 425.776.7890, www.sistersredesign.com

Contact us today for a complimentary staging quote.

SISTERS Interior Redesign recently had the opportunity to partner with Evie Jenner, Windermere Real Estate, Edmonds, to present a downtown Edmonds condo for sale. What made our job of staging easy was the beautiful paint colors that had been selected by a previous owner. As you can see from the photos, the colors selected photograph very well and in person these colors create a warm, cozy, welcoming atmosphere. This condo listing generated lots of interest from real estate agents and potential buyers. The condo received multiple offers in the first week on the market. So...before you decide to sell or list, be aware of how color can affect how your home feels to potential buyers and make good color choices.