Washington Real Estate Recap for 2009

As the second to last day of 2009 is upon us, I would like to take a moment to reflect on some things that I will associate with this year.

First Time Homebuyer Tax credit

From January to November sales in Washington increased from 2,650 total units to 5,523 total units with the highest month being October with 5,970 total units. During that time, even with rising unemployment rates, buyers who where on fence turned out in record numbers to capitalize on low housing prices, an abundance of inventory, and government incentives like the First Time Homebuyer Tax Credit. It is hard to discount the effects of the tax credit on sales but for 2010 it will take much more than incentives to get the economy going.

*June 2006 there was 11,187.00 total units closed.

The Year of the Bank Owned Properties

It seemed that the majority of the homes on the NWMLS where either foreclosed on or in the process. The homes where in a various conditions. Some foreclosed properties where missing their interior features. Floor coverings, cabinets, doors, and bathrooms where all gone. In some extreme cases homes where missing their ceilings. One the flip side, some homes where in excellent condition and buyers received some good bargains.

Current inventory shows 452 foreclosed properties in Snohomish County which includes commercial and residential. Bank’s toxic assets have assisted in the large price correction. Banks priced properties so low, which was great for buyers, that sellers where forced to reduce their prices so much just to compete.

Affordability Returning to Snohomish County

At the height of the economic boom, single family homes in Snohomish County would darn near cost a family’s first born. Prices for 3 bedroom 2 bathroom home reached the high $300,000 to mid $400,000, depending on which city you where looking at. In July 2007 the average home selling price was $393,553. Not what I classify as affordable. Since then prices have dramatically changed and buyers can now purchase a 4 bedroom 3 bathroom in Marysville for under $260,000 (a current client’s home).

Stability is another adjective to help describe 2009. 2009’s lowest average monthly selling price was $306,219 and a high of $330,345. The year end has settled at $308,699. Much more flat than the previous years increase and decrease. I look for prices to continue to stay flat and the market settle in 2010 with little price fluctuations.

Local Employment

Locally Snohomish County has a lot to think about. Due to Union and Boeing disagreements, the 787 Dreamliner’s assembly line will be moved from Everett to South Carolina. This could definitely impact the local economy and push the local unemployment rate well over 10% in 2010, 10.2% as of October 2009. Jobs will be the clear indicator that the local economy is turning around but I am not sure if President Obama’s Main Street Bailout will impact Snohomish County very much.

The Last Post of 2009

It is strange to think that we are at the closing of 2009 with 1 day in the calendar left to check off. For the most part 2009 will be the year of change for me. Change has touched everyone I know. From family and friends to business associates and clients, change is every. So I welcome the new year and looking forward to all the new people I may meet. Good Bye 2009 – Hello 2010.