Pierce County home prices dropped in September for the first time in years – the only Puget Sound-area county to see such a decline – as sales activity continued to ramp down.
The median home price, including houses and condominiums, declined 2.4 percent year-over-year, from $276,670 in September 2006 to $269,925 last month, according to figures released Friday by the Northwest Multiple Listing Service. Median means half sold for more and half for less.
Historical data show monthly Pierce County price increases since at least November 2003.
Sales activity also lagged, with 40.5 percent fewer homes sold in September compared to the same month last year.
The price drop and sales slowdown accompany a growing array of incentives for buyers and their agents, including cars, discounted closing costs and furniture shopping sprees.
Agents on Friday, however, largely portrayed Pierce County’s one-month price decline as more anomaly than trend and what’s to be expected in a market normalizing after the boom years of 2004 and 2005.
Some parts of the country are seeing deeper price drops and inventory levels often higher than what’s for sale here. In the six months Chris Wlodarczyk shopped for his first home, he watched the market become one he says strongly favors buyers.
Friday afternoon, he counted off the upgrades he landed on the Orting home he’s buying for $262,000: an outdoor hot tub, a fully landscaped yard, a Jacuzzi bathtub and all of his closing costs paid.
His advice for house hunters? “Be choosy,” said Wlodarczyk, 25. “If you look hard enough, you’ll find a house that’s worth more than you’ll pay for it.”
Keller Williams agent Michael Mesa agreed that local buyers can expect some good deals, but he said they shouldn’t be looking for bargain-basement prices.
“I wouldn’t go by a bunch of properties and think I can steal them at 30 and 40 percent below list price,” he said. “Everybody’s aware this is a cycle. … People who have to move are the ones who are most frustrated.”
NO SUCCESS IN MONTHS
Shirley Patterson, 65, took her North End Tacoma condominium off the market this week after listing it in June.
“You can tell it’s a buyer’s market; they’re very choosy when they come in,” she said.
Patterson priced the 1,000-square-foot unit, with a view of Commencement Bay, at $309,000 and later discounted it by $10,000.
“I’m somewhat discouraged, but I think I can compete when I do the upgrades. I have the view and they don’t,” she said, referring to nearby condo projects.
Patterson said she will put in new carpet, redo her guest bathroom, replace her kitchen cabinets and list the condo again next summer.
Buyers shouldn’t view one month of lower prices as a sign that more are on the way, said Bill Riley, owner of Gateway Real Estate. Riley is vice president-elect of the Washington Realtors, which plans to launch a campaign this month encouraging buyers to purchase now rather than wait.
“This is not a start of a decline. We’ve never seen a decline in such a strong fundamental market,” he said, pointing to expected job growth and year-to-date numbers, which show price appreciation of 4.1 percent in Pierce County for the first nine months of 2007 over 2006.
WAIT, AGENT TELLS SELLERS
Windermere agent David Gala, however, said he wouldn’t be surprised to see a few more months of lower prices as sellers continue to reduce prices and buyers bring offers under what’s listed.
Gala said some of his sellers have dropped prices, but he’s counseling many of them to wait for the right buyer.
“You really have to be as patient as you can be. It will sell; it’s just going to take awhile,” he said.
Elsewhere in the Puget Sound area, King County median home prices appreciated year-over-year in September by 4 percent, Thurston County by 3.6 percent and Kitsap County by 21.5 percent.
Here’s a look at what was up and down around Pierce County last month compared to September 2006:
• Puyallup saw one of the steepest decline in sales, a 50.5 percent drop, along with a median sales price decrease of 4.2 percent.
• Browns Point continued to be the county’s shining appreciation star, as prices increased by 12.7 percent, from $354,975 to $400,000.
• The largest price drops were in the Lake Tapps area (10.4 percent), the University Place area (10.7 percent) and the Lakewood/DuPont area (12.1 Percent).
Devona Wells: 253-597-8652
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