North Sound Property News

July is in the rearview and it’s time to report on what happened in the local real estate market last month.  This week, I’ll report on Mukilteo (98275 zip code).

Active Listings
(Listing count includes ALL listings currently on the market)
Listing Count: 101
Average Time on Market: 89 days
Median List Price: $648,800
Average $ Per Square Foot: $272

There were 52 new listings in the month of July

Under Contract (includes Contingent, Active STI and Pending)
Listing Count: 14
Average Time On Market: 58 Days
Median List Price: $579,975
Average $ Square Foot: $222

Sold Listings
Listing Count: 24
Average Time On Market: 44
Median Sale Price: $574,250
Average $ Square Foot: $246

Notes: New listings are up significantly over June (52 in July, 25 in June).  This is not unusual as there is often a build-up in inventory in early to mid-summer.  Average market time is hovering just under 90 days for Active listings for the second month in a row.  For Sold listings, market time is an average of 44 days–the properties that are selling are actually doing so more quickly than they did one or two months ago.  However, many listings are continuing to age on the market, with 33 of our 101 active listings now more than 100 days old.  Much of the aging inventory is new construction in the Camden townhomes and Waterton and Crowne Park developments, or properties in the $1 million and up range. 

Homes in the lower-mid price quartile are faring best, with market times around 45 days.  Likely, this is due to recent changes in the lending market.  The maximum loan amount for conforming loans currently is set at $417,000.  Assuming 20% down, this translates to homes selling for approximately $500,000 to $549,000–firmly in the lower-mid quartile in Mukilteo.  I would expect to continue seeing the most activity in this price range, as the condominium and starter home market is impacted by changes to the sub-prime and Alt-A lending markets, and as rates rise in the “jumbo loan” category.

Sold listings dropped from 29 in June to 24 in July.  Listings under contract also dropped from 21 in June to 14 in July.  We have 2.6 months of inventory at the end of July, compared to 1.8 months in June.  This effectively returns us to the same rate of sales that we saw in May. This is a common pattern, as summer sales typically occur towards the beginning and end of the summer, with the month of July being typically fairly quiet.

However, it is worth noting that the number of listings in Mukilteo continues to rise along with time on market.  More than a third of listings on the market are “of a certain age,” but prices remain steady or increasing.  What do we make of this?

First, we can take from this that in spite of the news coming out of the lending markets, buyers are still out there, but they are looking for the cream of the crop.  The best listings will sell, and quickly too, if they are priced well and well-prepared for the marketplace. 

I’ve said it before and I’ll say it again–staging matters.

Second, overpriced listings just aren’t selling anymore, and quite a number of Mukilteo sellers allowed their listings to expire or cancelled them on their own during the month of July, rather than lower their price.  This illustrates that no longer is it an effective strategy to put any property, no matter what the condition, on the market and expect it to sell.  It probably won’t happen unless it’s priced right.

Third, prices have settled at a plateau across all price quartiles.  Typically, when price movement occurs, it begins with sustained activity in either the upper 25% quartile or the lower 25% quartile.  With prices flat in all quartiles, it is likely that prices will hold steady where they are for the near future. 

 We’re still seeing healthy year-over-year appreciation, but rapid price increases are unlikely, as are rapid price decreases.  In short, we are currently seeing a fairly balanced market in Mukilteo, though one that slightly favors buyers.

About the Author: Sandy Kaduce is Associate Broker of Gallery Homes Real Estate. She serves buyers and sellers in North King and South Snohomish counties. She is 2009 Board President of the Mukilteo Chamber of Commerce, as well as Vice President of Site Selection for Habitat for Humanity of Snohomish County. For more information, visit Sandy on the web at www.sandykaduce.com! Read more from this author