Market Statistics and Monthly Message - Clark County WA

January Residential Highlights January 2011 showed lower levels for active and new listings compared to January of the previous two years. However, new listings were up compared to the previous month. Additionally, closed sales were at a higher level this month than January 2010 and January 2009. Comparing January 2011 to January 2010, closed sales increased by 1.8%. However, pending sales fell by 9.2%. New listings dropped 14.2% Month-to-month, when comparing December 2010 with January 2011, closed sales fell from 347 to 280 (-19.3%). However, pending sales increased from 372 to 383 (3%). New listings jumped from 509 to 808 (58.7%).
At the month's rate of sales, the 3,289 active residential listings would last approximately 11.7 months. Inventory is .07 months lower this month than it was in January 2010.

Sale Prices Average sale price fell 12.4% and median sale price also fell 11.3%, when comparing January 2011 with January 2010. A comparison of December 2010 to January 2011 shows the average sale price decreased from $223,600 to $214,800 (-3.9%). The median sale price also decreased from $199,900 to $195,000 (-2.5%).

County Summary                       Average Sales Price         Change 09 v. 10
         Clark                                           $223,600                       -5.9%
        Cowlitz                                         $179,600                       -8.7%



THREE REASONS TO BUY RIGHT NOW

Many buyers think that the best time to buy a new home is in March and April, when inventory levels are high and there are many homes on the market to choose from.

However, if you will be buying a home in 2011, the best time to buy may be right now, in January and February. While that may seem counterintuitive to what you’ve always heard, there are three very important reasons you should consider.

1.    Sellers are motivated. If their home was on the market during the fall months, and then they hit the holiday lull—with few showings and even fewer potential buyers—they have likely become frustrated that their home hasn’t sold. They may be very willing to negotiate on price or other items such as closing costs or inspection repairs.

2.    Interest rates are still at record low levels. While interest rates have remained low for many months now, there is no guarantee that they will remain that way in the future. As the recession begins to ease during 2011, interest rates could be on the rise. Buying a home when interest rates are at current rates can save you hundreds of dollars each month in interest payments; thousands of dollars over the course of a year.

Let’s look at an example.  A home you absolutely love is priced at $550,000 but you’re waiting for it to drop to $525,000.  You’re looking for a 30-year fixed rate loan and you’re planning to put 20% down.  If interest rates go up even a quarter of a percent, that house is actually going to cost you more money—an extra $25,000 (in interest payments), which puts you right back at the original list price of $550,000.  

3.    The mortgage interest deduction (MID) saves you money. According to the National Association of Realtors, in 2009 the average taxpayer claiming the MID deducted $12,200 from their 2008 taxable income and saved $3,050 in taxes by claiming the mortgage interest deduction.

By buying now, rather than waiting until spring or summer, you’re making a wise decision that could save you thousands of dollars right now—in paying less for your new home—and down the road with low interest rates and the mortgage interest deduction.

January 15, 2011 Market Statistics and Monthly Message - Clark County WA

December 15, 2010 Market Statistics and Monthly Message - Clark County WA