July 2009 Archives

Buoyed by the federal $8000 tax credit and historic low interest rates, King County home sales rose 30% in May from April, a pace three times the national average.

Sales of Seattle resale houses have been right around 350 a month from April to June, a downright balmy number compared to the frigid 161 sales in January. A typical January would have had about 450 sales; a typical spring month, 675. So Seattle resale volume is about half of what has been typical from 2000-2007.

Andpeople have begun to spend more for houses: the median sales price in Seattle had dropped back as low as $385,000 in January, and is now at $410,500 - a huge 6.2% increase at a time when the national economy is struggling to get back on its feet.

The national analysts concur, also. The April S&P Case-Shiller Price Index shows that Seattle values were up for the first time in a year, showing 0.23% lift, while the national rate was virtually unchanged at down 0.014%, and First American CoreLogic's Loan Performance Home Price Index reported a 0.5% lift for April.

Recently in my office I listened to a story about a Buyer who had just missed out on the house they wanted to call home.  How?  They waited several days after the home came on the market and by the time they wrote their offer, someone else had beat them to the punch.  I think in today's market it is easy to over-strategize or get lackadaisical and forget one of the fundamental rules in real estate: "time is of the essence".

Even in today's slower paced market if you identify the home that fits you and your family, you still must move quickly.  If you are interested in a house, there is a chance that someone else may be too.  Often in today's market people hesitate to write an offer immediately because they do not want to pay full price.  I understand that.  However, if it is a home you really want, I would suggest writing your offer immediately.  Simply make the offer that you feel is appropriate for the home.  At a minimum, it shows the Seller your interest and raises the likelihood that you will be involved in negotiations on the home, even if there is another offer. 

If you decide to hold off on your offer and are willing to take the risk of losing the home to another offer, be sure that it is over a dollar value that you can live with if you lose the home.  If you are buying the home for the long term (as you should be) maybe a $10,000 to $20,000 reduction in price is not as important as getting the house that feels like home.