January 2011 Real Estate Sales Statistics in Mason County and WA State

What's happening:

The volume of new listings declined: not nearly as many newly listed homes were offered for sale last month compared to twelve months ago. Shrinking inventory is fueling optimism among members of the NWMLS. Year-over-year pending sales were down somewhat, and sales prices continued to slip, but the number of closed sales increased slightly across the 21 counties in the Northwest MLS service area. Only four counties (Clallam, Cowlitz, Kitsap, and Okanogan) reported year-over-year price gains. Brokers attribute part of the price drop to sales of distressed homes (in general, meaning homes under foreclosure or impending foreclosure). The sales price for distressed properties could be 20-to-30 percent less than for normal sales, A greater percentage of low-priced distressed properties is pulling down the median price.

What's predicted:

There is a strong belief in the industry that the worst is behind us and we can look forward with confidence. “I expect sales to be soft through April when compared to last year since first quarter sales volume was artificially inflated by the rush to take advantage of the tax credit that expired on April 30,” said the president of a Windermere company. Distressed properties are making up an increasingly greater share of sales than a year ago, and that trend is expected to continue. More balance is expected as we tip into the new year, with sales more evenly distributed during the year, unlike 2010 when sixty percent of their sales occurred in the first half of the year. The balance of the year is predicted to be "somewhat fickle," in part because of upcoming elections and lingering uncertainty around the slow pace of the recovery.

- Comments on the impact of distressed properties
- Prediction on interest rate

 “We still have the better part of the next five years to work through short sales and bank owned property but this is a start,” January 2010 as an anomaly due to the tax credit, and even though last month was down in many respects compared to last year, it better reflects the true market. “It is good to start a new year off without any government incentives and is hopefully the start of returning to normal.”

 Some owners are opting to rent their homes as the market recovers. As demand increases and rents rise, investors are returning. Also emerging is a new group of renters – past owners who lost their home to foreclosure or short sale. “These renters are willing to sign long-term contracts so they can get their credit rating repaired.

 “Buyers are reluctant to look at distressed properties not because of the characteristics of the property, but because of the process,” The long delays with lenders regarding the sale of distressed properties are a major choke point. There has been significant progress with the banks trying to figure out the situation, but still a long way from making it buyer-friendly.”

 Experts expect interest rate hikes. "It’s not if, it’s when." Interest rates below 5 percent are an extraordinary event, and buyers need to take advantage of them. Sellers know they must position themselves better than their competition on all levels – price, condition, terms. Buyers who procrastinate will risk losing purchasing power because of anticipated increases in interest rates.

Below is the countywide residential sales statistics in Washington state:
(click on the table below for a larger image)

Data compiled by PING Real Estate.
(Data Source: Northwest Multiple Listing Services Feb 3 News Release and NWMLS online stats)