Agent: December MLS Stats Show Positive Signs

December 2011 statistics released by the Northwest Multiple Service offer positive signs for a gradual rebound of the housing market. Many factors have contributed to the positive outlook expressed by many industry leaders.

Even with the all-time low interest rates, buyers have been skeptical about venturing into the market. However, coupled with new laws that help homeowners delay or prevent foreclosure, new financing options, faster acceptance by many lenders on offers on short sales, by companies such as Boeing hiring to support new programs, and shrinking inventory, many areas are not only seeing an upsurge in sales but also multiple offers in some price ranges. Unfortunately, however, the overall sales price is down 11.8 percent and distressed properties still account for one third of the sales.

OB Jacobi, president of Windermere Real Estate, stated in an article of the Northwest Reporter that he believes the market has undergone a shift.

"Where we've been during the past year is a place of transition. It has been a slow recovery, but the housing market has finally turned a corner, albeit a soft one with some bumps along the way," he said.

While December statistics offer hope for a transition into a better market, we are still facing an uphill battle in a volatile economy. Only time will tell if the decrease in inventory is the result of sellers waiting until after the holidays to list their homes or if sellers are frustrated by the decrease in home values and deciding to wait. The volume of distressed properties must decrease to stop the downward flow of property values.

According to the Northwest Multiple Service figures for King, Pierce and Snohomish Counties, there has been an overall 20 percent increase in pending sales. Last month's pending volume exceeded the number of new listings (4,604) for the second consecutive month. The last time such an imbalance occurred was November 2006. 

Closed sales also outgained year-ago totals. December's completed transactions were up 7 percent from twelve months ago, rising from 4,430 closings to 4,741.

King County saw new listings for the month of December fall from 1,891 in 2010 to 1,552 in 2011. Total year new listings dropped 7,000 from 45,182 to 36,198. Pending sales were up 8 percent over the year. Closed sales were up 10 percent but prices fell 9 percent.

New construction starts in 2011 dipped 1,000 below 2010 numbers with an average listing price decreased 9.5 percent.

On the Eastside, inventory fell 24 percent. Pending sales are up 8 percent and closed sales are up 12 percent from last year’s figures. Market time decreased by 10 percent to 95 days. The median list price fell 4 percent but closed sale price dipped an additional 7 percent. Condominiums followed a close pattern.

This all bodes well for the housing market, but only a continuation of these results will bring certainty to the market. Statistics are released on a monthly schedule. In the coming months we can chart those statistics and hopefully see a consistent gradual improvement. 

Joan Probala is the managing broker for Issaquah Windermere (Windermere Real Estate/East Inc.). She has 30 years of experience in real estate, construction and sales. She is president-elect (2012) of the Seattle King County Association of Realtors.