Frigid temperatures and record snowfall brought home sales to a standstill in Bellevue for several days in December. The unusual weather, when coupled with the expected holiday slowdown, contributed to a 35-41 percent slide in pending sales compared to the same month a year ago, according to figures from Northwest Multiple Listing Service.
“December typically has a slowdown in sales due to the holidays, but the recent snowfall compounded this seasonal slowing,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “On the flip side, we should see deferred buyer activity from December pushed into January,” he remarked.
In Bellevue, west of I-405, pending sales of single family homes and condos dropped 41 percent compared with December 2007. East of I-405, pending sales were down nearly 36 percent.
Surprising some industry observers, inventory showed stability.
West of I-405, there were 42 new listings in December, up one from the same month a year ago. East of the freeway, 51 single family homes or condos were listed, compared with 57 a year ago.
There were 15 closed sales of single family homes or condos west of I-405 last month, down from 27 the year before. However, the medial sales prices was up more than 26 percent from a year ago, with a median price of $721,800 last month compared with $567,165 a year ago.
East of I-405, there were 48 closed sales with a median price of $399,500 last month. For December 2007, there were 58 closed sales with a median price of $487,000. The difference is nearly an 18 percent drop.
Considering single family home sales only, the median price west of I-405 was $895,000 last month compared with $998,000 a year ago. East of I-405, the median price was $490,000 last month, compared to $526,450 a year ago.
In King County, the median price for last month’s sales of single family homes (excluding condos) was $403,500, down about 7.2 percent from the year-ago figure of $435,000. Condo prices were nearly unchanged ($288,895 versus the year-ago figure of $290,000 for a decline of 0.38 percent).
With mortgage rates tumbling to the lowest level in more than four years, now is a good time to secure a very attractive loan, said Mike Welty, a mortgage banker with Guild Mortgage Company in Bellevue. In fact, some lender backlog is already occurring as a result of the low rates, according to Welty.
Welty also noted that home prices in some areas are close to 2004-2005 levels, a first-time home buyer tax credit of up to $7,500, plus the availability of low or no money down programs for many purchasers.
