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Tight supply drives quick sales for homes

By Kristina Shevory
Seattle Times Eastside business reporter

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Fewer homeowners put their properties on the market last month, pushing listings down and sparking fast-paced transactions in the area's real-estate market.

Eager buyers snapped up the few homes that came on the market in August. In King County, the average house sold in 46 days last month, down 12 days from the prior year. And in the part of the county north of Seattle, the average selling time was a record 35 days, because buyers are eager to purchase a home close to Seattle.

Active listings dropped 16.8 percent in King County and 14.2 percent in Snohomish County last month, according to the Northwest Multiple Listing Service. The Kirkland group tracks monthly home sales in 16 Western Washington counties.

"We could be in a time when sellers are holding off because they want to hit the peak," said Linda Dorgan, managing broker of John L. Scott's North Seattle office. "But they're going to miss it, and we'll be swamped with inventory."

Despite a tight housing supply, closed sales rose 9.2 percent in King County and 7.6 percent in Snohomish County last month. Within King County, closed sales rose as much as 31.5 percent north of Seattle and as little as 0.5 percent on the Eastside.

"As you march up the I-5 corridor, you get more house for your money," said Gary O'Leyar, a broker and owner with Prudential Signature Properties. "A lot of people are priced out of the Seattle market and find more value just a few more miles outside."

A seller in O'Leyar's office put a four-bedroom, three-bath home in Lake Forest Park on the market in August and received four offers within a week. The house sold for $710,000 — $40,000 over its list price.

A shortage of listings continues to pinch homebuyers. Real-estate agents are hunting for homes to sell, but have not been able to find enough to meet the demand of hungry homebuyers.

You can't blame buyers for their eagerness to purchase a home. With a steady 6 percent unemployment rate in Washington, lackluster business confidence and a sluggish recovery, buyers see real estate as a safe place to stash their money. Decades-low interest rates only sweeten the investment.

Last month, the average rate on a 30-year fixed mortgage fell from 5.99 percent to 5.82 percent — the lowest point since April, according to the Federal Home Loan Mortgage Corp.

"People are a little nervous about what is going to happen with interest rates after the election, and that's driving them to buy," said Dawn Rushton, associate broker at Windermere's Maple Valley office.

"It's become comical now about how buyers act. They're like sheep and rush to buy when rates go up, but then they calm down and forget about them later."

Kristina Shevory: 206-464-2039 or kshevory@seattletimes.com

Copyright © 2004 The Seattle Times Company

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