Home sales slide continues

By Rolf Boone | The Olympian • Published February 06, 2008

For the second consecutive month, Thurston County home sales fell 30 percent in the year-over-year period, the Northwest Multiple Listing Service reported Wednesday.

Regardless, median home price appreciation in the county continues to eke out small year-over-year gains.

In January, sales of single- family residences and condominiums fell 29.3 percent last month, compared with the year-ago period, but it apparently had little effect on price appreciation, the Northwest MLS data show.

Year-over-year median house and condo prices rose 2.79 percent with $262,500 from $255,375 in January, according to the listing service.

Thurston County's combined house and condo price appreciation stood out in contrast to some other Western Washington counties.

Combined house and condo price appreciation in Snohomish, Pierce, Kitsap and Mason counties all fell in the year-over-year period.

The combined house and condo data for Thurston County in January also show that inventory increased 12 percent to 1,880 units from 1,673 units.

Single-family residential data in the year-over-year period show:

• Sales fell 29.7 percent to 166 units from 236 units.

• Median prices rose 3.66 percent to $267,495 from $258,052.

• Inventory increased 11.21 percent to 1,795 units from 1,614 units.

Condo data in the year-over-year period show:

• Sales fell 20 percent to 8 units from 10 units.

• Median prices increased 7.7 percent to $172,935 from $160,572.

• Inventory rose 44 percent to 85 units from 59 units.

Northwest MLS area services manager Jerry Wilkins said Thurston County homes continue to hold their values because of the county's steady employment base.

"We have job growth but also stability, which is reflected not only in state government but other stable businesses," Wilkins said.

Keller Williams Realty Olympia associate broker Phil Harlan said an influx of buyers from Pierce County also continues to prop up home prices.

The median price of a single-family residence in Pierce County last month was $266,398.

"Residents can't afford a home in one county so they go to the next county," Harlan said.

For example, Thurston County buyers who have been priced out of a home here have bought homes in Lewis County, Harlan said.

Last month, Lewis County home prices appreciated 0.54 percent in the year-over-year period, according to Northwest MLS data.

Still, Harlan acknowledged that the Thurston County housing market has slowed for homes listed at $300,000 or higher. Homes priced at $300,000 to $400,000 likely could see a 5 percent drop in values, while those $400,000 or higher could reach a 10 percent drop in price, he said.

"The housing market has gone back to pre-2002 levels," Harlan said. "It has leveled off with normal appreciation."

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