With Mother's Day celebrations and the opening of boating season now behind us, I appreciate the opportunity to start your week with some
important straight talk about our local real estate market and the American economy.
Local Update: The good news is that various neighborhoods in Seattle saw price increases in April, or much smaller declines than other areas in the region. Queen Anne, Magnolia, Ballard, and Greenlake all have experienced big drops in supply, resulting in numerous multiple offers in the $500,000 and under price range. Thanks to their proximity to job centers, well priced homes in these communities are in high demand. This should continue to bold well for eventual price stability in the Greater Seattle area.
King County's year over year sales data showed a decline of 6.6% in sales from April 2010, while the median value of homes was down 6.7%. These sale numbers are skewed by the fact last spring buyers were taking advantage of the federal tax credit, while property values continue to struggle thanks to the increase in distressed home sales in the area.
Distressed homes, (bank owned homes and short sales), accounted for 35% of all sales in King County, (up from 21% one year ago). A closer look shows these sales make up for 43% of the market in SE and SW King County, versus just 22% in Seattle and 17% on the Eastside. In Snohomish County, sales were down 21% from April 2010, while the median price has dropped nearly 17%.
In summary, buyer confidence is returning to the Seattle area, while other areas will continue to struggle until the percentage of distressed home sales declines, or inventory levels continue to decrease. For those confident in their financial situation, now is truly an opportune to buy real estate in our area. Amazon recently announced they'll be expanding, Microsoft will be offering raises to much of their work force, and Boeing's victory in the Tanker negotiations all are positive signs in the continued recovery of our region's economy.
National Update: More good news...Our economy added a net of 244,000 more jobs in April, the strongest hiring month since February 2006. It was the third month in a row of 200,000+ new jobs, and the
private sector has now added jobs for 14 straight months.
Nearly 7 million Americans have lost their jobs since December 2007. Numbers like this don't unwind themselves overnight, if you do the math it would take several months in a row of several hundred thousand people re-entering the job market to even slowly make a difference in the massive amount of losses.
Closer to home, Washington State's unemployment rate fell last month for the first time since March 2007.
We all should be thankful for any positive economical data at a time of such global chaos. The disaster in Japan, combined with the unrest in the Middle East, and rising gas and oil prices could've really stymied an already sensitive recovery, but for now - slowly but surely - our nation collectively continues to dust itself off and work hard with a shared vision of prosperity and better days ahead.
If you have any questions, or would like to discuss ways to take advantage of current market conditions to better your personal situation, feel free to contact me anytime.
Mahalo - Rob
