Local home sales jump, prices stay low

Closed sales totaled 29 homes in June, compared with 15 in May and equal the number in May of 2008, but still low when compared with previous years.

On a very positive note, homes under contract (pending sales) are nearly double that, currently at 48. The local lenders seem to have funds available, but National Association of Realtors cautions that there could be delays in the number of contracts that go to closing. "Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions.”

While home sales were good last month, the average price for homes sold in June was $382,000, down from a year ago, when the average price was $416,035. That’s about an 8% drop. The dominance of the under-$300,000 sales still sits at 60%, and we’re seeing activity up to $500,000, but over that price there were only 4 saless.

We are also seeing the appraised values coming in lower due to the short sale and foreclosures that are being sold. These sales typically come in at 20% lower than the neighboring homes. This hurts the potential appraised value as the appraisers have to use this “distressed” data, as it is all that is available. Also, new rules require the banks to use appraisers on a random bases, sometimes from out of the area that lake local knowledge.

There are 396 homes currently listed for sale in Anacortes, very high for this time of year. With 29 being sold in a month, this says we have improved, but still towering13 months of inventory.

The national average for a 30-year fixed rate loan has stabilized and is still running at 5.35%.  Jumbo loans, which are still down, with 5-year adjustable rates at 5.1% But these loans being a variable rate hurt the higher end sales (over $500.000). The banks still resist lending on Commercial and Speculative building.

Curt Oppel is a Realtor with John L Scott Real Estate Anacortes.