Housing activity during February continued to reflect the downside of distressed properties with fewer sales and lower prices than a year ago.
A new year usually means new inventory. However, both the total number of new listings added to inventory and the total number of active listings are down from year-ago figures.The drops are the result of the influence the distressed properties are having on sellers. Sellers are reluctant to compete with the prices of distressed properties, and are holding off on putting their homes on the market. As a result, buyer choices have shrunk. Distressed properties continue to drag down home prices. "Since they can sell for 30-to-40 percent less than non-distressed homes, we expected a price drop." Brokers say they are optimistic, pointing to various indicators:
What's expredicted:
Sales are expected to be soft through April as compared to last year when a rush of buyers came into the market to take advantage of the tax credit, which expired April 30, 2010.
Brokers believe there are reasons for optimism
- Industry insiders say last week’s announcement of The Boeing Company win on the Air Force tanker contract;
- This week’s news from the state Employment Security Department that February marked Washington’s strongest month of job growth in more than three years;
- Several positive earnings reports from local corporations are all encouraging indicators for the housing market.
With this recent good news, “there is reason for optimism as we approach the busiest time of the year for home sales,”
Below is the countywide residential sales statistics in WA state:
(click on the table below for a larger image)
Data compiled by PING Real Estate.
(Data Source: Northwest Multiple Listing Services March 5 News Release and NWMLS online stats)
