“Not as bad as some think; not as good as some would like”

That was the tag line for the NWMLS as the numbers for July came out. It appears consumers are stuck in uncertainty surrounding the world’s economic concerns, our lack of jobs and the rollercoaster of the stock market. They seem to be hunkering down despite the lowest interest rates in years.
July and August are typically slower months in the real estate business due to the vacation factor and this year has been no different and the numbers show it. Closed sales for July were down 18.7% from the same time a year ago and the median price down 1.4%. Pending sales were down 23% from year a ago but inventories are up 5.8%. The numbers may also reflect that the summer buyers may have been pushed from the 3rd quarter into the 2nd quarter to take advantage of the tax credit. The ‘trifecta’ of the lowest interest rates on record (4.5% on a 30 year fixed), plenty of inventory and low prices offer an unprecedented opportunity and affordability for home buyers. If you missed out on the credit don’t fret, lower prices and lower interest rates more than offset the benefit of the tax credit. Homes are actually more affordable than they were three months ago, and that factors in the tax credit. Aside from low interest rates though job growth and building consumer confidence (which has been waning) is critical to building momentum.
On a positive note, Washington fared ‘4th best state’ for building a nest egg and has the country’s most promising real estate market in the near term, according to an index created by U.S. News that considered each state’s housing market, unemployment rate, per capita income and taxes.
In addition, Bellevue has been named the fourth best small city in the country in which to live by Money.com. The city was praised for its forested cityscapes, a lower-than-average jobless rate, a diverse population, great schools and an abundance of arts and entertainment activities.