North Sound Property News

Overview of the Mukilteo market in September:

September’s median sale price is down from August’s $590,750 figure to $549,950.  With a larger premium on Jumbo loan rates and the summer buying season over, we are seeing less activity in the $1 million and up price range, which is resulting in lower median price.  The following chart illustrates movement in the median list and sale price over the last few months.

Inventory continues to climb and absorption rates are falling, but at this point, prices seem to be holding fairly steady.  Median price is down somewhate from its summer levels but still represents gains over where prices stood in the spring of this year.  

 Market activity cooled in the last half of September, but the flow of listings onto the market also slowed, and quite a few listings (23) expired or were pulled off the market.  Inventory increases have finally slowed after several months of huge increases.  Through the end of the year, past trends would indicate that these inventory levels will decrease as the remaining inventory is sold or taken off the market.  However, with buying activity still slow in the wake of this summer’s credit liquidity problems, I would still expect to see price reductions and listing cancellations become a trend later in the fall.   In short, it’s a buyer’s market in every sense of the phrase.

Active Listings  (Listing count includes ALL listings currently on the market)
Listing Count: 130 (up from 127 in August)
Average Time on Market: 97 days (up from 87 in August)
Median List Price: $649,725
Average $ Per Square Foot: $266 (no change from August)

There were 33 new listings in September down from 62 new listings in August. The flood of listings onto the market seems to be slowing down.  With luck, we should have a chance now to sell through some inventory.

Under Contract (includes Contingent, Active STI and Pending)
Listing Count: 18 (down from 19 in August)
Average Time On Market: 57 Days (down from 88 Days in August)
Median List Price: $647,750 (down from $715,000 in August)
Average $ Square Foot: $261 (up from $244 in August)

With 130 listings on the market and only 18 properties going under contract in September, we now have a 7 month supply of inventory in the Mukilteo area.  Inventory levels climbed very quickly through the summer, but sales were slow as compared to previous years.  I would expect to see inventory levels declining through the rest of the year as homes are sold, pulled off the market or expire.  Given current market conditions, price reductions remain likely.

Sold Listings
Listing Count: 19 (down from 20 in August)
Average Time On Market: 77 Days (up from 57 in August)
Median Sale Price: $549,950 (down from $590,750 in August)
Average $ Square Foot: $233 (down from $262 in August)

In spite of recent changes in the lending market, it doesn’t appear that any of the contracts written in August (of which there were 19) failed to close in September, as this month booked 19 closings.  This is good news, as

With a 7 month supply of inventory, we are firmly in buyer’s market territory.  Media attention to problems in housing and credit, ARM resets, foreclosure news and price reductions in other markets around the nation have scared away many buyers, and have prompted some sellers to sell who otherwise might not have.  Median sale prices have been bouncing around all summer, jumping from $434,000 in May to $620,000 in June, then settling down into the mid-upper $500,000 range.  Summer buying activity and activity in the high end market accounts for much of the June spike in prices, but given current market activity I would expect to see median prices hover in the mid-$500K range through year end, and could possibly drop lower.

For buyers:  Buying in the current market is not for the faint of heart.  There is a lot of uncertainty in the market right now, but with uncertainty comes opportunity.  Sellers who want to sell will become more and more willing to negotiate as the fall and winter wear on, so there could be some great buying opportunities for buyers who are positioned to take advantage of this.  Buyers should, however, be taking a long term perspective–this is probably not a great time to make short term purchases.

For sellers, my advice remains the same as it has been for the last few months: price your home right from Day One on the market and make sure it looks the very best in it’s price range, and you can still receive a great offer.  But when only 18 percent of listings are selling in any given month, the odds are not in your favor of finding a buyer if your home is overpriced and ill-prepared.  Staging is crucial, and working with a Realtor who understands your market and can think creatively about marketing your home in a challenging market can make the difference between listing your home and getting it sold.
 Note: all market statistics are compiled by me using NWMLS data, and include the Mukilteo city limits/98275 area code only, and are residential only.

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