October 2007 was a down month as expected for the greater Queen Anne, Magnolia, Ballard, and Greenlake areas. The number of homes sold dropped by close to 1/3 with the average home sold for 2% less and the median home sold for 4% less than in October of 2006.
Homes that were priced right still sold right away. The 145 homes that sold within the first 30 days of the listing date were purchased for just over 100% of the listing price (% sp/lp). While the 41 homes that sold between 31 to 60 days were purchased for just over 97% (% sp/lp). A difference of about 3%. A note to sellers, choose an agent who will price your home right. It will save you time and money.
A side point I noted in my last entry, is the fact that there is a dramatic increase in listings that have not sold but have been taken off the market (i.e. expired, cancelled, temp. taken off the market) in central and north Seattle. Comparing October of 2007 to 2006 the number of homes that have been taken off the market is up by 69%. I believe many sellers who do not need to sell are either renting or staying put. If these sellers were in a different position and had to sell now the market would look much different.
With the holidays right around the corner the market will remain soft for the rest of the year. To conclude I expect the market in 2008 to be similar to 2007. Things should pick up in the spring and summer of 2008. This winter is a great time to buy. The real estate market is unlikely to crash in Seattle like other areas of the country. The economy is good, job growth is good, and experts estimate 135,000 more people to move to Seattle in the next 5 years.
This posting was edited on November 7th due to mathematical errors.