June home prices in Puget Sound fall 6% from year ago

Last month's price-savvy buyers kept the median home sales price 6 percent below the previous June in the four-county central Puget Sound region as sales surged to the highest level since last August.

Still, many sellers are in for a wait, according to June data released today by the Northwest Multiple Listing Service.

An 18 percent increase in houses and condos for sale last month, compared with a year earlier, meant a 6.7 month supply of available homes throughout King, Snohomish, Pierce and Kitsap counties.

A year earlier, that supply was just shy of four months. A six-month supply is considered "balanced, equally favoring buyers and sellers.

In King County last month, the house and condominium markets were markedly different. Sales of detached houses were down 27 percent compared with a year earlier and the median sales price was down 4.3 percent to $449,700. There were 25.4 percent more houses on the market than a year earlier.

King County condos, on the other hand, saw their median sales price rise 5.3 percent year-over-year to $295,000. However sales declined 45 percent while listings increased 40.5 percent compared with the previous June.

Getting move-up buyers to actually commit is a challenge, says Windermere agent Tim Lenihan.

"They're the hardest to convince to move because they've lost so much equity," Lenihan says. "I tell them it's all relative. The house they want to buy is also down. But they're waiting a few more months to see what happens."

Meanwhile some buyers are waiting to see if prices fall more. John L. Scott agent Michael Orbino says he tells them that even a small uptick in mortgage rates could wipe out any sticker-price savings.

Mortgage rates have been trending up in recent weeks, setting at 6.35 percent last week for a 30-year loan. That's still below year-ago rates.

Like King County, Snohomish, Pierce and Kitsap all saw single-family home prices decline last month compared with the previous June.

Snohomish County house prices were down 9 percent to $347,344, and condo prices slipped 3 percent to $245,975.

Pierce County saw house prices drop 6.6 percent to $265,000, while Kitsap County experienced the biggest drop — 12 percent to $267,450.

Elizabeth Rhodes: erhodes@seattletimes.com