Home sales were relatively the same in January from last year. There were 1,095 completed transactions compared to 1,017 in January 2010. We have 63% more sales than the rock-bottom point we hit in January 2009, and 35% lower than where it was between 2003 and 2007.
Inventory levels are down 28% compared to a year ago and at their lowest since April 2006, which maybe leading to stable home valuations. The supply of single family homes is approximately 4.0 months, which slightly favors sellers. However, many would-be sellers might be wary of the market and, as a result, there are fewer homes for sale. At the same time, there are a lot of trapped would-be sellers creating pent-up supply.
KIng County January 2012
The median home price in King County dropped a bit to $315,000 from $320,000 last month. However, foreclosures and short sales will continue to cause downward pressure on prices. Distortions caused by REO (bank- or other lender-owned) and foreclosed properties also contribute to price depressions. When you adjust for these conditions and compare ‘standard resale homes’, the change in home values is much less drastic.
Median Prices for Standard, Bank Owned, and Short Sales
January 2012: $315,000
April 2004: $315,000
Peak: July 2007 $481,000