Aug. 27, 2009 - King County Homes selling under $400,000

Fewer homes are selling, but more homes are selling for less than $400,000.

One of the things I found to be very interesting was the relationship of homes that sold for less than $400,000 so far this year, against the total number of homes sold. Comparing that to previous years we can see the HUGE change in that relationship in 2006. The fact that the total number of home sales dropped from 19,783 to 17,631, but the number that sold for less than $400,000 dropped by HALF was a huge sign that people were buying more home than they could afford.

This is another key factor in the mortgage crisis. How could 14,399 people afford homes for $400,000 or less in 2005, and then all of a sudden only 7,998 were buying in that price range with 10,000 or so paying a lot more? That was the red flag saying..."hey, something's not right here".

In 2001, 82% of people buying single family homes in King County were paying $400,000 or less.  The fact that 11,556 people could afford homes for $400,000 or less in 2001 tells us a LOT about future market conditions. Only 4,765 people bought in that range this year, representing half of all homes sold.

I expect to see volume increasing a lot more than I expect to see prices decreasing...from here.

I'm doing a lot of month to month breakdowns as to price and volume that I will post throughout the next day or so.

 Required Disclosure: Stats not posted, compiled or verified by Northwest Multiple Listing Service.

Aug. 27, 2009 - RE: King County Homes selling under $400,000

 This is good way of selling homes.If you fix more amount for homes,it will take long time because still market is down.I appreciate your thinking