Published July 2002

Home sales regain strength: Price, sales increase

By Mike Benbow
Herald Business Editor

Snohomish County home sales, which have slipped in recent months, roared back in May even as the combined median price for homes and condominiums rose to a record $210,000.

Earlier this spring, the number of homes sold had fallen compared with the same month last year.

But the 1,204 homes sold in the county in May topped the 1,155 sold in May 2001, according to a report released by the Northwest Multiple Listing Service, which represents Puget Sound-area real estate agencies.

And pending sales, deals that haven’t been through closing, were up 7.4 percent compared with a year ago.

Windermere broker Vern Holden said he thinks the slip in sales in past months may have made sellers a bit anxious.

“I think deals are being put together more quickly,” he said. “I think sellers really think, ‘If we have a buyer, let’s sell it.’ "

The $210,000 median price, the highest ever for the county, was nearly 6 percent higher than the May 2001 median of $199,000.

That median price is still affordable for many people, and lower-priced homes are the ones selling the quickest, Holden said.

He said his Mill Creek office sold 88 homes in May, compared with 64 last year. Only eight of those 88 were over $350,000, Holden said.

“For homes from $160,000 to $230,000, we’re beginning to see some multiple offers again; some have two or three buyers,” he said.

Another indicator of rising demand was the average time spent on the market — 48 days in May in comparison with 50 last year at that time, according to the report. Snohomish County’s relatively quick sales time tied with King County for the shortest time on the market.

By comparison, it took an average of 67 days to sell a home in Pierce County and 104 days on Whidbey Island.

Prices in King County are also strong. Single-family houses and condominiums had a combined median price of $250,000 in May.

Holden said he believes the market has shifted from one favoring sellers to one favoring buyers. But he said homes are still being sold, and at good prices, because mortgage rates remain low and there are plenty of homes available.

As a result, home sales have been one of the bright spots in a gray economy in the Northwest in recent months.

“It’s a smaller segment of the economy, but it’s sure carried us,” Holden said. “It’s really been the thing that’s helped our economy over the recessionary period.”

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