My take on the latest developments in our local market in N King County.

Friday, December 11, 2009

Eastside Housing Market, Post-Nov 30 Tax Credit

Inventory Down, but for how long?  We're experiencing an exaggerated, temporary inventory squeeze due to 3 factors--great year/year comparisons, sales driven by the tax credit expiration, and inventory pulled in November for the holidays. 

Feeling a Buyer Smorgasbord in the New Year  New listings are exceeding deals in the pipeline, with a lot coming on in January, due to renewed foreclosure activity and as homeowners selling to take advantage of the new credit.  I forecast inventory building steadily into April, affording buyers newfound strength and choices. 

When is Kirkland going to wake up?
"let us be cheerful and brave in the face of everything, reflecting that it is nothing of our own that perishes."  [Seneca] 
Kirkland and other affluent Eastside enclaves embody a disturbing, Stepford-y stoicism in the face of bleak market data.  111 homes in Kirkland are currently offered over $1 million.  95 of the 111 have been on the market 60+ days.  7 sold in the month of November.  Spotting a trend?  Without a slew of foreclosures as competition, too many Eastside sellers are able to delude themselves as to their home's value.  The reality check will arrive early in 2010, as foreclosures move up-market driven by unemployment and strategic default.

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