The median price of a Pierce County home continued its runaway descent in October, falling more than 16 percent in the year-over-year period, according to Northwest Multiple Listing Service data released Thursday.
October’s price decline was the sixth consecutive month in which median prices have fallen by at least double digits on a year-over-year basis.
Prices fell 16.26 percent to $180,000 last month, one of the lowest median prices in the region, the combined single-family residence and condominium data show. King County suffered a similar decline as its median prices last month slumped 17.86 percent to $287,500, the combined data show.
Although median prices continue to fall in Pierce County, lower prices appear to be stimulating sales.
Sales rose 12.15 percent to 757 units last month from 675 units in the year-ago period, according to the combined data.
Tacoma-Pierce County Association of Realtors President Mike Larson said one reason prices continue to fall is the large number of homes still for sale in the county. More than 5,000 homes were for sale last month, which means a prospective buyer can make a low offer for one house, and if it isn’t accepted, that buyer can just move on to the next house, he said.
The state of the economy is another factor, including problems in Europe and a volatile stock market, all of which adds up to a strange dynamic for the housing market, Larson said.
Despite mortgage interest rates that are “stupid low,” the housing market is not leading the economy out of recession – as it has done in the past – but continues to lag.
“Consumer confidence is such a big part of what we do,” said Larson, who also is president of Allen Realtors in Lakewood.
Thurston County home sales, meanwhile, finally ended a streak of flat results. Sales rose nearly 7 percent to 245 units from 229 units in October 2010, according to the combined data. Median prices fell 6.25 percent to $210,000 and pending sales fell 5.37 percent to 282 units.
Abbey Realty of Lacey designated broker Jeff Crandell said business has been busy one week, slow the next, and recent buyers tend to be more sophisticated about the state of the housing market. For sellers, the market continues to be a challenge because prices continue to fall, although not as sharply as in Pierce County.
“The house must be well-priced or in good condition or you tend to be ignored,” Crandell said.
Sellers also continue to compete against distressed properties, such as homes being sold for less than the value of the mortgage — also known as a short sale — or a bank-owned property.
Although prospective buyers might be in search of a deal, the short sale process isn’t as easy it might sound, Crandell said.
It takes a typical home 30 to 45 days to close; a short sale can take to three to four months, he said. “We will all be pleased when we’re back to business as usual,” Crandell said.
Rolf Boone: 360-754-5403 rboone@theolympian.com
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