North Sound Property News

October’s median sale price is up from September’s $549,950 to $610,000.  One third of all sales activity in October took place in the over $750,000 market, but there was no activity in the over $1M market.  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 are still holding steady or climbing. 

I predicted last month that continuing increases to inventory without a corresponding increase in demand could result in a correction to market prices this winter, but so far, that isn’t happening.  Individual listings may be seeing price reductions if original list price doesn’t result in a sale within a reasonable timeframe, but the market overall remains stable.  In fact, median price increased quite a bit in the last month–not exactly a trend, but certainly an indicator that the market here hasn’t weakened to the point where prices are destabilized.

Active Listings  (Listing count includes ALL listings currently on the market)
Listing Count: 143 (up from 130 in September–10% increase)
Average Time on Market: 105 days (up from 97 days in September)
Median List Price: $630,000
Average $ Per Square Foot: $265 (down from $266 from September)

There were 21 new listings in October, down from 33 new listings in September. The flood of listings onto the market is slowing down, but listings are still coming on the market faster than sales can absorb them.

Under Contract (includes Contingent, Active STI and Pending)
Listing Count: 16 (down from 18 in September)
Average Time On Market: 130 Days (up from 57 Days in September)
Median List Price: $614,725 (down from $647,750 in September)
Average $ Square Foot: $287 (up from $261 in September)

With 143 listings on the market and only 16 properties going under contract in October, we now have a 9 month supply of inventory in the Mukilteo area.  As inventory climbs and demand fails to keep up, some correction to market prices remain likely through this winter.

Sold Listings
Listing Count: 15 (down from 19 in September)
Average Time On Market: 86 Days (up from 77 Days in September)
Median Sale Price: $610,000 (up from $549,950 in September)
Average $ Square Foot: $227 (down from $233 in September)

With a 9 month supply of inventory in Mukilteo, and inventory levels continuing to climb along with time on market, it looks like we are in a buyer’s market that will probably last through the spring.  Prices do not seem to be responding to downward pressure placed on them by inventory, but sales are sluggish.  Good news for buyers is there is plenty of inventory to choose from, and sellers are likely to become increasingly willing to negotiate.  The bad news for sellers is that in the current market only 11% of listings will sell, so good enough isn’t good enough, you simply have to be the best if you want to receive an offer this winter.

For buyers:  Buying in the current market presents the best opportunity in years to negotiate on your terms.  But only for the brave.  Although the long-term direction of the market is likely to be upwards, short-term, price drops remain a strong possibility.  However, for those buyers who are positioned to do take advantage–that means having solid financing and the ability to make a commitment of at least 3 to 5 years–this is your chance to take advantage of this “winter of the seller’s discontent.”  The Fed continues to make moves to stabilize housing, and rates have responded in kind, remaining historically low.  However, instability in the market means it is not a good time for a short-term purchase.

For sellers, with only 11% of listings selling it is more important than ever to have your home be the best looking and best priced home on the market.  Your only option, should you be unable to improve the condition of your home or lower your price, is to offer attractive terms to buyers.  Many sellers right now are experimenting with ideas such as paying the first several months of mortgage payments up-front, buyer bonuses, rate buy-downs, etc.  These can sometimes be effective, but the best solution remains to price the home to sell right from the start, and to ensure that the home is spotlessly clean and staged to perfection.  Homes that don’t meet the exacting demands of today’s buyer simply won’t sell, as buyers have no qualms about waiting for the “perfect” property in an uncertain market.

Note: all market statistics are compiled by me using NWMLS data, and include the Mukilteo city limits/98275 area code only, and are for residential properties 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