Jul. 6, 2008 - Median Single Family Home prices down

Median single family home prices are down from $300 per square foot to $289 per square foot and the median priced paid for a home in King County is also down this June to $450,000 from last June when the median price paid was $475,000.  In a few days after I am sure that all King County end of June sales are in, I will compile a few more reports of the first half of 2008 and the 2nd quarter of 2008. 

Statistics not compiled or posted by NWMLS (required disclosure)

Jul. 8, 2008 - RE: Median Single Family Home prices down

Sad fate for homeowners, homebuilders and real estate brokers in Washington.

But the subprime credit crisis that went into effect in mid 2007 has affected all homeowners in America.  Mortgage lenders like Aegis Mortgage, People'sChoice and HomeBanc have became financially insolvent and sought Chapter 11 protection due to high mortgage defaults.  Homebuilders like Tousa, Inc., and Levitt have followed suit due to lower demand for new homes.

In Massachusetts, for example, sales prices for single-family homes dropped 12% in April compared to the same point last year.  Declining value of properties in most of the U.S. is obvious.

The question is, when will value go back up? Should an investor homeowner "buy",  "sell", or "hold"?

The falling prices are painful for many homeowners, reflecting the declining value of their properties. But the accelerating pace of the decline also means the market finally is diving toward a new equilibrium. Prices held relatively steady throughout 2007, even as sales volume fell sharply. Now, more sellers are cutting prices.

Aug. 8, 2008 - RE: Median Single Family Home prices down

I find your site very informative,especially since I am considering moving to the Seattle area( I currently live in Houston,Texas)

My preference is in Kirkland, a waterfront or watereview condo.

Do you see prices continuing to drop, and if so, for how long and how far.

Aug. 8, 2008 - RE: Median Single Family Home prices down

Hi Gus,

I live in Kirkland.  Put my own home on market this week. I think prices will go down for at least three years.  Some properties will go down in value more than others.

As to condos, view is often better than too close to the water and town due to noise considerations.  A resident with waterfront property said she hasn't gotten a good night's sleep in summer for 5 years. People come home late and drunk and make a lot of noise.

Condo values have a lot to do with age and ceiling height.  Stay away from condo conversions if possible.  Better buildings with 8 foot ceilings will likely get hit harder than newer buildings with 10 foot ceilings.

It's a case by case situation, but the premium buildings are going to start stacking up inventory through December.  Unless you are moving here before then, ask me again every 3 months or so.

I'll do a Kirkland condo wrap-up post tomorrow night for you.  If you see ths before then, give me  price range to target on.

Aug. 15, 2008 - RE: Median Single Family Home prices down