Sales increase while inventory stays at historic lows. This formula equals rising values for Lake Stevens. While a return of values is prevalent almost everywhere now, Lake Stevens and the Puget Sound Region is experiencing a rebound faster than most areas of the country.
The Northwest Multiple Listing Service (NWMLS) reported 70 residential closed sales in Lake Stevens for the month of May, the highest of the year to date. Meanwhile, as of June 4, there were 111 active residential listings available to purchase. The same date indicated there were 77 homes with the status of pending sale, or under contract to be sold.
The NWMLS reported that the median value for a home in Lake Stevens for April was $290,000, up dramatically from March’s median value of $257,500. For the month of May the values dropped to $263,750, a more realistic figure. Statistics do not always paint the correct picture, especially on the short term (month to month), but when you look at statistics over a longer period of time, the truth about what is going on is more apparent. There is no doubt among real estate professionals that values are increasing and will continue to do so.
Out of the 70 closed sales (sold) for the month of May there were 17 short sales and three that were bank owned. A year ago these numbers would have been reversed. Bank owned properties are becoming fewer and are getting ever harder to close, while short sales seem to be selling in abundance.
New home sales made up more than a third of all sales in Lake Stevens for May with 26 sales, a somewhat higher percentage than the 24.8 percent average for Snohomish County. According to NewHomeTrends, a research and consulting firm builders use to target what to build, where and what price, reports a shrinking inventory of new home starts and that new home sales are out producing new starts.
With new construction taking a lion’s share of sales, a shortage of new homes to sell will spike prices more rapidly as lot values increase due to supply and demand from builders looking to buy to turn homes.
The report also shows that the biggest builder in Snohomish County for the last year April 2012 to March 2013, was DR Horton with 214 closed sales followed by Pacific Ridge Homes (169), Polygon (101), Encore Homes (98), Henley USA LLC (84) and Lennar Northwest Inc. with 76. DR Horton was also the number one builder for sales in King, Pierce, and Thurston County. For more information on the market and real estate in general, visit my web page at www.johnlscott.com/steves.