Median home prices in Pierce County dropped in August even as the number of homes on the market declined. Figures released Tuesday by the Northwest Multiple Listing Service showed a 11.9 percent decrease from the same time a year ago. It’s the 11th drop in the past year and the largest.

The median price for a single-family home or condo was $250,975. That price is about $4,000 below the median for July. Last August, the median home price was $285,000.

The median price is the midpoint of all sales. Half of homes went for more and half for less.

There were 1,871 new listings in August, 420 fewer than last year’s 2,291. This year also has seen a large drop in closed sales, with 736 in August compared with 1,120 last year. July saw 796 closed sales. Still, Washington has fared better than other regions, especially California and Florida, where prices have declined much more.

Pat Maddock, an agent with Coldwell Banker Bain and a former president of the Pierce County Association of Realtors, has checked on areas across the West Coast and is convinced that Western Washington is in great shape. Even though the statistics look rough for Pierce County, it is nothing compared to areas such as Phoenix and Las Vegas, he said.

Low prices, lots of homes on the market and low interest rates continue to show that it is a fantastic time to be a buyer. But buyers are “sitting on their hands,” thinking things could get even better and waiting to buy. Another factor might be the tightening of credit markets that have made mortgages harder to get.

“If you are waiting for the market to bottom out, you’re going to miss it,” Maddock said. “You don’t know it’s at its lowest until it climbs upward.”

The most telling statistic to Dick Beeson, NWMLS director and owner of Windermere Commencement Associates, is that there is growing competition – statistics show a 10 percent drop in the number of houses for sale and a 20 percent drop in new listings.

“There is a declining inventory,” he said. “The selection is a little less, and competition is a little bit stronger, because only the strong survive.”

But sellers still have issues to face. Low prices and low rate of closed sales mean it’s easy to make the wrong decisions, Maddock said.

“It’s very easy to overprice your home, it’s very tempting to overprice your home, and it’s suicidal to overprice your home,” he said.

Brian Everstine: 253-597-8374

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