Market Trends Report For Snohomish County, WA – July 2007

Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR senior economist, said a good buyers’ market has evolved. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” he said. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

Active listings in King County increased in June 2007 by 4,271 homes or 45% compared to the same time period in 2006. Although there are more homes being sold, there is also a marked increase in inventory causing the average market time in June to increase to 46 days vs. 36 days in 2006.

King County continued to experience rising prices, with the average sales price 11% higher in 2007 than 2006, bringing the average sales price to $507,969.

On the other hand, Snohomish County had a 12 percent decrease in sales - 191 more homes were sold in June of 2006 than of 2007.

Despite the sluggish sales, the number of active listings increased by 62 percent in June and market times increased 31 percent or 18 days. The average sales price increased by 9 percent compared to June 2006, increasing to $394,710.

Year to date, sales declined 15 percent, and the average sales price increased 11 percent.

June statistics show it is a great time to buy a home. Buyers have more homes to choose from, making sellers negotiable. But, buyers also need to keep in mind that buying a home is a long-term investment and can't expect to see the double digit annual appreciation of a few years.

For more information about living in Snohomish County or Snohomish County real estate, please call me at 425-308-3669 or visit my website at www.KarensVillas.com.

Statistics compiled by the Northwest Multiple Listing Service and are deemed accurate but not warranted.