As seen on www.seattlecondoreview.com last week, October pending sales, closed sales and median home values increased year over year. I think Wendy does a great job simplifying the stats. Of course these numbers benefited by auction sales, but regardless a free market blazes its own path and will find a way to fix itself. As explained last month this is a much bigger problem in Bellevue (Bellevue Condo Debacle).
As we rid the market of overpriced or stagnant inventory, new programs like condo bulk buy will continue to enter the market. These “marketing” programs stand to benefit both the developer and the buyer. Keep in mind however that basic real estate fundamentals will never change (ie….location, price, perceived value). Other factors contributing to the velocity in the market is that mortgage rates remain at an all time low. If you play your cards right and buy down your rate with proceeds from the seller, you can lock in a 4.5% fixed rate for the next 30 years. Maybe thats why the market is shifting back to more normal absorption. For all of us, lets hope it continues.