A few days ago, the Seattle Times reported that comparing home prices in King County in October 2011 to October 2010 dropped a”puzzling” 15%. Since I represent very knowledgeable clients in the south King County as well, I thought I’d better be sure I understood those numbers for myself.
I’ve had a bit of difficulty actually supporting that County-wide 15% price drop number. Based on closed residential home sales in October 2010 and in October 2011, here’s what I see: (Actually, I also took at look at September just to see how they compared – those numbers are here too)
My numbers for the County in October support a 10.14% price drop coupled with a 14.09% increase in the number of actual residential transactions that closed. September year over year shows a 9.64% drop in price with an almost 31% (WOW) number of closed transactions.
Here’s how the same periods looked for Auburn addresses:
Overall, it looks to me like we’re finally getting a huge backlog of properties SOLD – off the market! That’s good for everyone! Reflection on amazing interest rates and drop in prices? You bet! I’m saddened by the continuing drop in prices; after all, I’m a homeowner in Auburn. But as an agent, I’m encouraged by the number of transactions that are actually making it all the way to the closing table.
Based on my own practice, I can tell you that I expect we’ll see fewer units that actually close in November and December. The Fall has been slightly quieter than the Summer pace.
So what actually sold in Auburn in October, 2011:
I was prepared to say that prices dropped significantly because bank-owned and short sales were driving the numbers. Looks like about 40% of sales were Traditional – sales between a typical Seller and Buyer, another 40% or so were Bank-Owned or Short Sales, with about 20% of all sales that closed being new Construction. I’m pretty excited to see this mix, which is much better than
2010: 66% were bank owned or short sales; 24% new construction, with only 13% being traditional sales.