AND NOW… THE GOOD NEWS!
Last week an article appeared in The News Tribune titled “Home Sales on Decline in Pierce County”. Although a cursory look at statistics would suggest that to be true, an understanding of the real estate market in Pierce County demonstrates the headline to be far from true.
Mr. Boone stated that sales were off 4.3% compared to last year. The reality is that nearly 28% of that year’s pending sales were reported in the first quarter of 2010. The previous 5 year normal was 24% of annual sales are reported in the first quarter. The cause of the increase was a consequence of the tax credits, which literally borrowed buyers from later in the year; buyers who hastened their decision to buy and as a result there were more sales earlier in the year than is typical. The consequential 4.3% reduction was miniscule when viewed through an annual sales perspective and in light of the tax credits.
If the sales activity in 2011 follows a more normal path and the new sales reported in 2011 through March equal the typical 24% of the total year’s sales, we are positioned for the best year since 2006!
Take a look at the math… There were 3125 single-family pending home sales reported by the NWMLS in the first 3 months of 2011. If that represents 24% of the anticipated sales for 2011 it would suggest that over 13,000 homes will sell in 2011… That’s an increase of over 10% in sales activity compared to 2010 – Now that’s a measurable change and with no false support by tax credits!
Thanks to Bob Call, the Principal Managing Broker for the South Sound Region. Bob’s office is in the Tacoma Branch of CB Bain on Bridgeport Way.
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