Housing market slump continues

By Rolf Boone | The Olympian • Published September 09, 2008

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South Sound home sales stayed cool in August yet prices largely have remained stable, the Northwest Multiple Listing Service reported Tuesday.

On a year-over-year basis in August, sales of single-family residences and condominiums stumbled, falling nearly 31 percent to 303 units from 439 units, the data show.

Year-to-date home prices, however, tell a different story.

Since January, median home prices have fallen about 5 percent compared with a year-over-year price drop of nearly 8 percent in August.

Last month, median prices fell 7.81 percent to $248,000 from $269,000 in August 2007, the data show.

A lack of new house construction or fewer people choosing to sell or list their homes also continued to chip away at South Sound inventory levels.

Total active listings fell almost 10 percent to 2,185 units from 2,415 units.

South Sound real estate professionals say it is a great time to buy.

"I cannot stress enough what an amazing opportunity exists right now for move-up buyers," said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. "The price gap between the more-affordable price ranges and higher price ranges has narrowed, which means these buyers can afford to 'price jump' into a new home at a premium value."

South Sound real estate agent Bill Nieland added that mortgage interest rates remain low.

"This is a great market," he said. "I'm more enthused today than I have been in years."

Nieland also questions whether the MLS sales data truly reflects the pace of sales in South Sound. In the past two months, he has had 18 transactions, he said.

"Nobody can convince me that (home) sales are down," Nieland said.

Other results from the year-over-year August data:

• Single-family residence sales fell 28 percent to 296 units from 413 units.

• Single-family median prices fell 7.59 percent to $249,500 from $269,990.

• Single-family listings fell 9.86 percent to 2,103 units from 2,333 units.

For condos in the same year-over-year August period:

• Sales fell 73 percent to seven units from 26 units.

• Median prices fell 17 percent to $174,950 from $210,900.

• Listings were unchanged at 82 units.

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