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HOUSING TRENDS VOLUME 10 ISSUE 2

KING COUNTY VERSION

MOVE-UP/LUXURY MARKET Showing Signs of Life

Over the past several years, first-time buyers made up about 42 percent of the market. As a result of home buyer tax credits, those first timers represent close to 50 percent of buyers. However, increasing activity in the upper price ranges shows that buyers in the move-up/luxury market are sparking the housing recovery as well. In King County, pending sales* of entry/first-time/move-up homes (those priced $599,999 or less) were up more than 100 percent over last March. In the move-up/luxury market ($600,000+), pending sales were up more than 150 percent over last year. This is clear evidence that the move-up/luxury market is making a good recovery, especially when you consider that this market has not directly benefited from home buyer tax credits like the lower price ranges have. Why is the move-up/luxury market improving? • Buyers who are hoping to “time” the bottom of the market • Low interest rates • The increased affordability of jumbo loans

There is clear evidence

that the move-up/luxury

market is making a good

recovery, especially when you consider that this

At this time last year, interest rates on a jumbo loan were in excess of 8 percent due to a large number of lenders exiting the jumbo market.Today, many of those lenders are returning, which has helped bring interest rates on jumbo loans more in line with conforming loan rates: near 5.5 percent. In addition, King County FHA loan limits are up to $575,500, which means that a buyer can purchase a home with as little as 3.5 percent down payment as long as the loan does not exceed $575,500.

market has not directly

benefited from home buyer tax

credits.

With increasing optimism in employment numbers and consumer confidence, as well as the increasing availability of financing products, the housing market recovery should continue at a steady pace. And as we are already seeing, the recovery appears to be taking place throughout the price points, not just in the markets that have been bolstered by tax credits. *Condos/Single Family. Resale Only. Numbers provided by Trendgraphix.

30 YR MORTGAGE INTEREST RATES

MONTHS OF INVENTORY

$0-599,999

Due to healthy demand, home prices stable or single digit appreciation.

4.8

5.2 VS

APRIL 2009

APRIL 2010

Source: FreddieMac ©2010. Some John L. Scott offices are independently owned and operated.­­­

6.5 MARCH 2009

VS

3.4 MARCH 2010

Note: *Condo/Single Family. Resale Only. At the March rate of sales, the current available inventory would be depleted in the months listed. Source: NWMLS/Trendgraphix

MONTHS OF INVENTORY

$600,000 +

Due to average demand, home prices stabilizing.

20.3 MARCH 2009

VS

5.9 MARCH 2010

Note: *Condo/Single Family. Resale Only. At the March rate of sales, the current available inventory would be depleted in the months listed. Source: NWMLS/Trendgraphix

King County, WA Housing Trends - May 2010  

A look at the tends in luxury/high-end home sales with April 2010's statistics.

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