Real estate agents say drop in home prices not a worry

1.7 percent decline ‘unusual’ but not

By Rolf Boone | The Olympian • Published April 05, 2008

The median price of a single-family Thurston County home fell last month compared with the same period a year ago, but South Sound real estate agents said they were not worried about it.

Combined sales of single-family homes and condominiums dropped nearly 21 percent last month compared with the same time a year ago, while median sale prices held steady. Single-family home prices fell 1.71 percent to $250,585 from $254,950 in March of last year, the Northwest Multiple Listing Service reported.

Monthly sales prices generally have been rising during South Sound's housing boom of the past three years, but real estate agents said they were not concerned about last month's slight price drop.

"I would classify it as unusual, but I'm not alarmed by it," Northwest MLS area services manager Jerry Wilkins said. "I continue to be fairly positive about our future. Those that price their properties appropriately are seeing a fair amount of (buyer) activity."

South Sound real estate broker Doug Burger said he didn't know the last time single-family home prices fell in the county, but he said he was encouraged that the price drop was small.

"For us in Thurston County to experience only a slight decline speaks highly of the strength of our area," Burger said.

Single-family home prices fell more sharply in other Western Washington counties, such as in Pierce, where year-over-year prices in March fell nearly 6 percent, Northwest MLS data show.

South Sound broker Jeff Crandell said he isn't sure prices will continue to drop, but he acknowledged that the housing market has slowed.

"We're not going to set any sales records in 2008, but I don't think it will be a bad year," he said.

Meanwhile, Thurston County home sales fell more than 20 percent on a year-over-year basis in March.

In March, combined sales of single-family residences and condominiums fell 20.9 percent to 314 units from 397 units last March.

Combined median prices increased 0.01 percent to $249,925 from $249,900, the listing service reported.

Inventory remained high with more than 2,000 homes on the market, rising 11.2 percent to 2,058 units in March from 1,851 units last March.

Data for single-family residences in the year-over-year period ending in March showed:

• Sales fell 18.4 percent to 298 units from 365 units.

• Median prices fell 1.71 percent to $250,585 from $254,950.

• Inventory rose 9.8 percent to 1,980 units from 1,802 units.

Data for condos in the year-over-year period ending in March showed:

• Sales fell 50 percent to 16 units from 32 units.

• Median prices rose 8.6 percent to $186,000 from $171,203.

• Inventory increased 59 percent to 78 units from 49 units.

Rolf Boone covers business for The Olympian. He can be reached at 360-754-5403 or rboone@theolympian.com.