Homes Seattle

Seattle Real Estate housing market slowed in June, with sales down 5 percent from a year ago and the number of homes on the market climbing to a record amount of listings in the area.

The listings were up 10 percent from a year ago, even as the number of sales in the pipeline to close in July dropped 23 percent, to less than 1,500.
Sales of new and existing real estate seattle and nationwide have slowed with the expiration of a federal tax credit for buyers. Although mortgage rates remain below 5 percent, many real estate experts question whether home sales can maintain momentum without the tax credits. "No mystery - just like anything in sales. Run a great special one month on products, services or houses, take the special away, and the next month sales of that same item are slow," said Lacey Lingenfelter, an agent with Skyline Properties who specializes in real estate Seattle. "Why? You made two months of sales in the last month of the special. And some people were waiting to see if the 'special' would come back."

Lingenfelter said she is optimistic about the real estate Seattle market, given the region's improving jobs picture. In addition, the surge in the number of homes in the market raises the possibility of homes for sale Seattle taking longer to sell. Real estate listings are up partly because buyers "are less willing to sell at a discount" and are holding firm on home prices. "The federal tax credits were most successful in getting first-time homebuyers into the real estate market, with most purchasing 'entry-level' homes," Horton said. "This helped existing homeowners purchase 'move up' homes, which in turn helped spur activity in higher price ranges." She said with experts projecting that the region will gain 10,000 new jobs this year and another 10,000 new jobs in 2011, "the one factor that is slowing us is the uncertainty going on in Washington DC."

"They are creating so many new departments, agencies and programs that business's are having a hard time figuring out how much all of this spending is going to cost," she said. "Its difficult to expand when you don't know what all the new rules are and/or the costs."

On a really good note, Mortgage rates hit a record low last week, Bankrate.com said Thursday. The average conforming 30-year fixed mortgage rate dropped to 4.75%, the research group said. The last time mortgage rates were above 6% was in November 2008. At that time, the average rate was 6.33%, which meant real estate Seattle with a $200,000 loan would have carried a monthly payment of $1,241.86. With the continued record low interest rates and the home prices coming down, home affordability is increasing drastically. Now if the job market continues to grow, incomes increase and the market truly stabilizes, the real estate Seattle market will be sitting pretty. Keep an eye on your local market and this next winter through spring will be a great indicator of if things are truly stablized.