http://www.ezdigs.com/_docs/monthly-new-construction-report.pdf
http://www.ezdigs.com/_docs/ResaleReport.pdf
Monthly Market Summary and Forecast
/24-7PressRelease/ - KENMORE, WA, November 19, 2006 - This is the first of EZdigs' monthly housing market wrap-up. We not only provide you the hard data on the present state of the market, but our interpretation of the information and what it means to you, the buyer and seller. We start with an observation by Matthew Gardner, Principal, Gardner Johnson Land Use Economics.
Real estate moves with local economic fluctuations and rarely, if ever, moves with the nation as a whole. Job growth in the Puget Sound region has remained buoyant so far this year and the trend suggests that this will continue into 2007. Sustained low interest rates, coupled with limited land supply and positive economic growth, suggests to me that there is little fear, of any sort, of a decline in housing values in the Seattle region.
Matthew Gardner, Principal, Gardner Johnson Land Use Economics
October 2006 New Construction Market Recap*
October unit volume (number of closings) was down for the month at 1,107 but ahead of the 1,087 for October of last year. The numbers indicate that sales of new homes are stronger than the resale market. Market strength for new construction is supported by figures that show the median price for single-family new homes remains strong. October median prices for King and Snohomish counties were a hearty $490,000 and $438,725 respectively, though prices in every county have dipped.
Projection: We expect prices to stay flat for the next couple months in light of the current market and keeping with yearly norms. (Refer to "Median Price Charts 5 - 10")
*(King, Snohomish, Pierce, Kitsap, Thurston, and Whatcom counties)
October 2006 Resale Market Recap*
In all six counties we track, prices are higher in October than they were in January 2006 by an average of 8 percent. But resale unit volume is down 21 percent compared to the same period last year, contributing to an overall pricing dip. King, Snohomish, and Kitsap counties home prices have pulled ahead in October - posting big increases pushing prices up towards their highest median price levels of the year. In general, median prices are higher than for the same period in 2005. Days on Market (DOM), another measurement of the market trend, is moving higher for single family homes and lower for condos, indicating that condos are selling faster than homes.
*(King, Snohomish, Pierce, Kitsap, Thurston, and Whatcom counties)
Looking Ahead
Condos seem to be the "X" factor in our market. According to the Northwest Multiple Listing Service (NWMLS), 3,044 new homes were sold through September 2006 compared to 806 new condos (King County only). But the NWMLS data doesn't tell the entire story. New condos sold downtown are probably not included in the NWMLS report which only includes homes "Listed" for sale by agents. In this hot condo market many condos are being pre-sold without ever getting onto the NWMLS. Data furnished by the Talon Group Escrow and Title Services show there were 1,414 new condos sold, compared to 3,319 new homes through September 2006. According to Talon, condos make up 43 percent of the new construction market in King County.
Projection: Condos are a big factor in the current housing stall. But with prices trending up for October, this stall won't last.
Conclusion
So, where is the bad economic news that's causing the housing market to slow down in the Northwest? Right or wrong, public perception of a possible precipitous price drop in housing prices is causing many people to sit on the fence - not buying, not selling - waiting to see what happens next. Since local economics simply do not support price suppression or slow sales, and the data supports only a temporary stall, we are advising our buyers to use this time to buy now before prices begin moving up.
Mike Satterlee
President/Principal Broker
www.ezdigs.com
425-577-4295
About ezdigs.com
Headquartered in the Seattle area, ezdigs.com was incorporated as a limited liability company in June of 2006 to address a growing need in the real estate industry: To keep the cost of home ownership affordable and accessible. Mike Satterlee, the company's president, chief executive officer, and principal broker, founded the company after working in several different sides of the industry, including production homebuilding, development, finance, construction, and realty. His experience provides a unique knowledge and informs his understanding of the marketplace. The company also provides industry intelligence, monitoring the market daily and providing monthly new construction and resale reports. Additional information may be found at
www.ezdigs.com or by calling 425-577-4295.
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