Short Sale Team Leader
Greater NW Realty
July Home Sale Looked Promising
By Beryl Gosney, Snohomish County WA Realtor & Market Specialist
Is this the beginning of the end of the spiraling downturn of our housing
market? We've been deceived before --- so cautious optimism and a bit of
hesitation is clearly understood.
Significantly, for the first time in a long time, home sales rose considerably in July, as compared to over a year ago, according to the local Northwest Multiple Listing Service (NWMLS).
July 2011, has caught our eye especially, being the second straight month with a rise in pending sales for Snohomish County. While this news is noteworthy, we must remember, however, that the time it takes for a pending status to actually close, can take anywhere from 30-45 days, while a short sale transaction in pending status, can take 60, 90, or even 120 days or more just to obtain short sale approval of an offer.
So is July's increase in pending sales, attributed to an increase in offers being made on short sale listings in the county? Highly likely, I’d say. If this is the case, we can expect the July increase in pending transactions see a similar rate of increase four months down the road, thus reflecting the impact of increasing short sale activity. Do you follow me on this?
Last month, there were 851 homes sold in the county. That represented an increase of 17% in home sales from a year ago. Of greater significance, we've seen a 39% increase in pending sales the past year 12 months --- 867 pending sales in July 2010 as compared to 1,207 in July 2011. Does this give us hope or what? If those sales brought some cash equity to the home owner at closing, than we have something to celebrate about --- but I am sure we have to wait until we see those pendings become SOLD, before the fat lady can sing.So will home prices continue to slide? Well, we do see some areas continue to drop in value where the majority of sales are both bank owned properties (REO’s) and Short Sales. At the same time, we also see many areas stabilizing and even increasing in price ever so slowly.
As confusing as it may seem, it makes sense, when you consider the housing areas where job loss and financial crisis are not as prominent. Those homeowners seldom see a foreclosure in their neighborhoods, and when they do, they represent such a small percentage of the homes being sold, that they have little impact on driving down prices.
Until next month, keeps your emails coming. Your support for this blog, as well as your business referrals of folks you know in distress, is enabling us to assist them, any way we can, in getting their lives back on track. Until next time, believe!
