The median priced home in Central Seattle has dropped substantially so far in 2009. In January it was $518,250 and in March it dropped to $480,000.
Tightened restrictions for Jumbo Loans is one cause that is not helping median home prices. The interest rate for a Jumbo is typically a percentage point higher than a conforming loan and the down payment is typically 20% or more. This effects sales of homes priced from approximately $530,000 and above.
The volume of homes priced from $600,000 to $1,000,000 has slowed to a crawl, which is pushing down the median value as a whole.
Sales Value Line-Chart
The good news is that the volume of homes sold is on the rise. 29 homes sold in March and 52 are pending. We are entering the busiest time of the year so the number of transactions should continue to rise.
Sales Volume Line-Chart
I expect March to be the bottom for the year for the median priced home value and April to be the bottom for the number of homes sold in one month.
http://www.seattlehomekey.com/
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