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Tom Kelly
Tom Kelly
The Real Estate Adviser

March 14, 1997

WHILE SEATTLE HOUSING MARKET SIZZLES, OTHERS JUST STAY WARM

By TOM KELLY
The Real Estate Advisor

While tales of multiple offers seem to be the common topic at social events in King and Snohomish counties, the housing activity in other areas of Puget Sound seems to be moving along at a healthy, but not necessarily earth-shattering, pace.

According to February statistics obtained from the Computer Multiple Listing Service in Silverdale, there were just about as many homes for sale in February as there were a year ago. And, the figures are nearly identical when it comes to closed sales -- 180 homes sold in February, 1996 compared to 187 which sold last month.

"Things are picking up a little bit because people are beginning to think about buying or selling a little more this time of year," said Ellen Thane, broker in John L. Scott's Silverdale office. "But we do not have the market that we are hearing about in Seattle. I don't know if those people who are caught up in those multiple offers in Seattle know about how much more house they could buy over here. It would certainly make sense to come and look because you get so much more for your money."

According to the Kirkland-based Northwest Multiple Listing Service, the average home sale price for King County for February was $199,612, $163,178 for Snohomish and $149,535 for Pierce. Inventory in the tri-county area is down 7.5 percent from a year ago but NWMLS officials say the selection remains good in most areas and across all price ranges. Compared to last year, inventory is tightest in about 10 neighborhoods encompassing central and north Seattle and parts of the Eastside.

And, there always seems to be an isolated sale in an area where other homes are not moving. For example, a young Seattle couple with a young daughter purchased a two-bedroom, one-bath home for $130,000 five years ago. The family added a half-bath in the basement, did some interior sprucing and felt right at home until baby No. 2 entered the picture. They got three opinions from local agents and arrived at an asking figure a bit higher than the three agents suggested (doesn't that seem to be human nature)?

The couple chose $159,950, listed with an agent and got three offers the first day the house hit the market.

"You always second guess yourself when you get that much action the first day," the man said. "But I don't think it was any error on the agents' part to come in with an accurate sales figure. I just think the market was moving so fast that were no other solid sales to work with."

Chris Nye of Re/Max Real Estate in Tacoma said some King County builders have taken advantage of Pierce County's lower land costs and friendlier construction environment to keep the housing shelves stocked with more than ample inventory.

"I just think it's going to be a while before we can really make a dent into a lot of that newer product," Nye said. "Buyers are taking their time and seeing just about everything in their price range before they write up an offer."

The Bellevue-Kirkland area is one of the hotter spots in Western Washington with competition become fierce and multiple offers quite common.

"This market has the feel of 1989 but it may be still a little early to tell," said Mike Drew of Century 21 Smith-Ring in Bellevue. "The buyers who are pre-approved for loans are taking the best route because sellers view them as stronger, more qualified buyers. It's simply the best thing you can do to prepare if you are going to actively enter the market."

Home appreciation in the Puget Sound area has been modest since the early 1990s. However the 1987-90 years brought double-digit jumps to many neighborhoods and many locals wondered if that type of run-up could happen again.

It may happen, but only in isolated backyards.



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