Kenmore Home Sales, Janary 2010 – Not Bad Compared to 2009!
Warm Weather Brought a Warmer Real Estate Market to Kenmore
Last night I attended our neighborhood annual Home Owner’s Association Meeting and there was a lot of concern about property values and questions about how the real estate market was going to perform in 2010. There is no reason to believe that 2010 will bring much change to this tough market. Lending continues to be tight and I have a sense that the job market will have more of a negative impact on the market than does price or inventory. Even so, last month buyers were obviously taking advantage of tax credits and low interest rates. So let’s take a quick look at January which turned out to be a good month for home sales in Kenmore:
ACTIVE LISTINGS
We saw a 31% decrease in inventory compared to last January (148). I believe a lot of homeowners have finally realized that unless they absolutely MUST move, they are staying put. One interesting factor this last month was the number of new construction homes that were offered and sold. Currently, 27% of the active listing are new construction and many of these homes (DH Horton homes) are smaller 1500-2000 square foot houses at the low $300,ooo price point. It was a smart move to build smaller. The builder is also offering some attractive buyer’s incentives. 39% of the inventory has dropped in price and many of these price reductions are significant.
PENDING SALES
Pending sales are encouraging as they represent homes that are in the sales process. Last January there were only 19 pending sales. It’s also a positive sign that the days-on-market are fairly low at 64 days. Something to keep in mind is that 43% of the pending sales are new construction. Only 16% were “distressed” properties.
SOLD HOMES
Last January there were a whopping 8 homes that sold! We did much better this year. Of course, this time last year we were still recovering from the most severe winter in many years and that certainly made things tough; however, it’s nice to see that we had some good activity. I would like to point out that fully 58% of the homes that sold last month were new construction, most of which were the lower priced properties. As the new homes are sold out, it will be interesting to see how the remaining inventory will sell. I can tell you that selling a home that’s over $450,000 is challenging.
So the 2010 real estate market started out much better than last year. Let’s hope that the momentum continues. If you have any questions regarding the Kenmore housing market or have questions about the value of your home, please give me a call at 206.713.2102 or email me at jlupori@gmail.com.
