Published May 2003

Home prices rise,
but so do number of sales

By Mike Benbow
Herald Business Editor

If there’s one thing this recession has shown us, it’s that it takes an awful lot to squelch our yearning to own a home.

Take March, for example.

• It rained, a lot.
• The economy continued to sputter.
• Unemployment went up in Snohomish County.
• So did housing prices.
• And housing sales here increased.

According to the latest statistics from the Northwest Multiple Listing Service, 1,052 homes were sold in the county in March, an 8.8 percent increase from March 2002.

The combined median price for single-family homes and condominiums was $210,000, an increase of 2.4 percent, or $5,000, from a year ago.

Those are incredible numbers given the fact that home sales have hovered between extremely good and sorta good throughout the down economy.

Even the fact that we became a country at war didn’t seem to deter home buyers. Pending sales, meaning those begun in March but not completed, amounted to 1,508 in March. That’s nearly a 33 percent increase from the numbers posted in March 2002.

Interest rates are undoubtedly the key to it all.

J. Lennox Scott, a director of the listing service and CEO of John L. Scott Realty, said a drop in rates to 40-year lows early in the month sparked a buying spree.

“When rates popped up again later in the month, there was another surge of buyers who wanted to take advantage before they rose too high,” Scott said.

Those buyers could be making a smart move.

Conventional wisdom says we’re already fighting our way out of the recession in fits and starts. If that’s true, interest rates could rise this summer during the months that most people typically buy homes.

If you can’t shake off the desire for a place of your own, you might want to rev up your search. Even if rates don’t rise substantially this summer, it’s hard to imagine better conditions than right now to secure your own piece of the rock.

Here’s a snapshot of the county’s housing market in March to help guide your search, using areas grouped together by the listing service for their statistical purposes:

Maltby, southeast county — There were 106 homes sold here, and they had the highest median price — $259,975. That’s understandable since a lot of the homes in this area are new and because its proximity to King County makes it attractive to people who work in Seattle. Homes here were the fastest sellers despite the price. They spent an average of 49 days on the market.

Lynnwood, Edmonds, Mountlake Terrace — There were 730 homes sold here for a median price of $233,5000. Homes spent an average of 57 days on the market. Again, proximity to King County makes this area popular with Seattle workers who can’t afford that area’s prices.

Snohomish, Monroe, Sultan — Homes here were the third most expensive, with a median price of $218,000. The 84 homes sold here in March spent an average of 68 days on the market.

Everett, Mukilteo, Mill Creek — There were 317 homes sold here for a median price of $209,950. These are popular communities, and homes sold within an average of 58 days, third fastest in the county.

Lake Stevens, Granite Falls, Darrington — There were 95 homes sold here in March, with a median price of $195,000. Lake Stevens is the most popular area and has most of the new construction. Homes in the Granite Falls and Darrington areas are decidedly less expensive and harder to sell. On average, homes spent 80 days on the market.

Marysville, Stanwood, Arlington — There were 203 homes sold here in March. The median price was $187,950, the least expensive in the county. It took an average of 73 days to sell homes here.

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