Homebuyers appear to be in a "mental filibuster," according to one real estate executive upon seeing the latest figures from Northwest Multiple Listing Service (NWMLS). The report on February activity for 19 counties across Washington shows slight gains in pending sales and selling prices from January, but brokers say many would-be buyers remain on the sidelines, paralyzed by the uncertain economy.
"I believe these results are reflective of what might be called a "mental filibuster" for potential homebuyers: They are struggling between the desire to buy a home and the uncertainty of what might come next in the way of government stimulus, tax credits or lower mortgage rates," observed Ron Sparks, managing vice president of Coldwell Banker Bain.
'Tremendous activity'
Agents are reporting "tremendous activity" at open houses, with the last few weekends generating the best activity in several months. Despite the high interest, what's stopping buyers, according to Sparks, is weak consumer confidence.
"Buyers don't yet understand what the stimulus package means to them," said NWMLS director Kathy Estey, managing broker of John L. Scott's Bellevue Downtown office. "Good houses at good prices that are affordable are getting attention," she remarked, noting her office had four multiple-offer situations the last week of February for homes priced under the median cost. "Open-house activity is up, and attendees are serious," Estey reported.
Northwest MLS brokers reported 4,559 pending sales during February for a 4.7-percent improvement over January. That total, which includes single-family homes and condominiums, was the highest volume since September 2008, when MLS members notched 5,982 pending sales. Last month's pending-sales total (offers made and accepted, but not yet closed) was down about 18 percent from 12 months ago.
Mixed price changes
Price changes were mixed across the counties in the Northwest MLS service area. The median price for last month's completed sales of single-family homes and condos combined was $278,000, up slightly (1.8 percent) from January, but lagging the year-ago areawide median price of $316,950 (down about 12.3 percent).
Ten counties reported increases in median prices for last month's sales when compared with January.
For single-family homes only (excluding condos), the median selling price was $283,000, up about 2.5 percent from January. Condo prices dipped slightly from January, dropping from $250,000 to $248,250.
Inventory levels are shrinking in many counties in the NWMLS system. Broker-members added 9,421 new listings to inventory, down more than 22 percent from a year ago, when they added 12,104 new listings to the database.
Lawrence Yun, chief economist for the National Association of Realtors, who was in Bellevue recently to keynote a Realtor meeting, said he expects buyers will respond to much-improved affordability conditions and to the $8,000 first-time buyer tax credit.
In a statement accompanying NAR's latest report on pending sales of existing homes, Yun said, "Conditions have been aligning very favorably for homebuyers, with the exception of consumer confidence. But I am hopeful that sales will turn around by late spring and early summer because history suggests that home sales can rise even in times of job losses when housing affordability rises."
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