NCW Real Estate Blog

According to the Northwest MLS, Frigid temperatures and record snowfall brought home sales to a standstill for several days in December. The unusual weather, when coupled with the expected holiday slowdown, contributed to a 17.6 percent slide in pending sales compared to the same month a year ago.

The four-country Puget Sound region saw December sales decline 18.2 percent from a year ago. Inventories actually declined slightly, by 0.9% from 38,440 active listings 12 months ago to 38,089 at the end of December. The decrease in actual closed sales in December is not surprising considering the economic downturn and chaos in the financial markets in October and November.

In spite of the weather, brokerages are reporting an increase in activity from potential buyers who have grown weary of waiting. The historically low interest rates, return of some predictability in the mortgage markets and depressed prices have some buyers moving from spectators to actively looking to purchase.

There was a feeling that deferred activity from those who were stopped for awhile by the weather in December will be pushed into January. We’ll know soon!

Tags: General Interest, Marketing, Northwest by Al Lorenz
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The 2008 sales results from my Chelan Residential Sales Summary are in.   Four residential sales were recorded in the report area in December.  The most startling number is that the Average Sale Price for the 4th quarter is less than half of the average for the other three quarters of the year! 

All in all, 108 properties sold of the 544 (19.8%) listed in 2008.  That compares to 192 sales in 2007 of 284 (67.6%) listed.  The volume of homes sold (108) dropped in 2008 to only 56% of the 2007 number.  In dollar volume, things were a bit better with $51.6 million in sales in 2008 versus $82.9 million in 2007 making 2008 62% of the dollar volume in sales of 2007.

The fourth quarter reflects the turmoil in the credit markets, uncertainty due to the election and general economic meltdown that occurred in late 2008.  How long the market stays in this mode is still unpredictable.  If a higher inflation period follows the deflation we are currently seeing, real estate assests should gain value with inflation.  The moderator to that is high inflation may also bring high interest rates which would moderate the price gains seen from real estate until such a time that mortgage rates come down again.

If the fourth quarter is reflective of falling home prices, it could have some undesirable local impacts as well.  Tax valuations should start reflecting the new market while the Chelan area was valued last year at the peak of the market.  That may mean that the Chelan area pays a larger share of the county wide taxes until either the entire county is assessed annually or the Chelan area is revalued again.

I also updated the Full Share Condominium Sales Report.  There were 27 condominiums sold of the 107 listed in 2008.  That compares to 50 sold of 77 listed in 2007.

One thing is certain, we live in interesting times!

Tags: General Interest, Local by Al Lorenz
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Tim Eyman’s latest initiative, which he is filing today, takes aim at the discontent over property taxes.  As I read it, he intends to limit government growth and cause governments to give back revenue they gain above the inflation rate by reducing property taxes.

You can find out all about it here, at Voters Want More Choices!

In early February, we will be receiving our property tax bills for 2009.  Please e-mail us at staff@GoLakeChelan.com with the amounts of your increases.  We will get the story out on the actual increases seen in the Chelan Valley!

Tags: General Interest, Local by Al Lorenz
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