Local home prices continue to slide; activity still rising

Following the pattern of recent months, local home prices were down in December while activity rose significantly, according to new figures from Northwest Multiple Listing Service.

The median price for December’s closed sales of single family homes and condominiums declined about 11.8 percent from a year ago, dropping from $255,000 to $225,000. The median price for a closed sale in King County was $291,000.

Brokers attribute much of the slip in prices to the number of distressed properties in the mix. In some areas, foreclosures and short sales, which tend to be sharply discounted, account for about one-third of sales.

However, home sales finished the year much stronger than they started, with pending sales for the fourth quarter outgaining the first quarter by more than 3,000 transactions for a 21 percent increase.

“All over we are seeing healthy marketplaces emerge as the inventory levels drop,” said J. Lennox Scott, CEO and chairman of John L. Scott Real Estate. “As you get closer to the job centers of Seattle and Bellevue, the marketplace is looking strong again.”

A year-over-year comparison shows December’s pending sales (mutually accepted offers) rose more than 20 percent from a year ago. Northwest MLS brokers reported 5,237 pending sales last month, up from the previous year when they recorded 4,359 transactions.

Closed sales also outgained year-ago totals. December’s completed transactions were up 7 percent from twelve months ago, rising from 4,430 closings to 4,741. Six counties registered double-digit gains (Grays Harbor, Jefferson, Pacific, Pierce, San Juan, and Snohomish).