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Home sales, median prices decline

Thurston County: But pending single-family house purchases rise

The Olympian | • Published November 06, 2009

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Thurston County's median home price fell more than 11 percent from October 2008 to October 2009, the second time this year that prices in the county have dropped by more than 10 percent, according to Northwest Multiple Listing Service data released Thursday.

Although home prices fell 11.35 percent to $225,172 last month from $254,000 in October 2008, median home prices here haven’t fluctuated as much since the beginning of the year. Since January, median prices have fallen from $239,950 to $225,172, the combined single-family residence and condominium data show. (Median home prices fell 11.47 percent from April 2008 to April 2009, according to the Northwest MLS data.)

Also last month: The number of home sales closed fell to 290 units from 316 units a year ago, pending sales rose 13.03 percent to 295 units from 261 units in the same period, and the number of homes for sale fell 13.64 percent to 1,729 units from 2,002 units, the combined single-family residence and condo data show.

Burger Professionals owner and broker Doug Burger said median prices fell because of the number of houses going through foreclosure or the short-sale process. A short-sale occurs when the lender agrees to accept less for the house than the value of the mortgage. It is that downward pressure on prices that has forced some sellers who are not in default to also lower their prices, Burger said.

“The average Joe had to compete with these prices,” he said.

Burger said that although there still are foreclosure and short sales in the market, they aren’t happening at the same pace they once were. At one time the short-sale of property was 30 percent to 40 percent of his business, he said. Last month, Burger’s nine agents completed 18 transactions, two of which were short sales, while the rest were first-time buyers taking advantage of a tax credit, or buyers from outside the area, such as retirees and those in the military. He also believes his office would’ve had more transactions last month, but lending still remains tight.

Throughout the Northwest MLS region, though, pending sales increased because buyers were trying to qualify for the homebuyer tax credit before it expires this month. The House voted Thursday to extend the $8,000 credit. The program also was expanded to include buyers who already own homes. The president is expected to sign the bill today.

“The hope of the real estate industry is that the credit will be extended until there is more equilibrium within the economy and the housing market can stand on its own two feet,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.

Rolf Boone: 360-754-5403

rboone@theolympian.com