Prices expected to stay low

Two sides to every coin, right?

One toss reveals a boost in home sales in Snohomish County in January; another toss reveals a saturation of bank-owned properties driving prices below expected returns.

The presence of buyers in the market could stand that coin on its edge this year as the number of homes available for sale dropped 12.4 percent last month compared to January `09.

The Northwest Multiple Listing Service (MLS) estimates a six month supply of homes for sale in Western Washington. Economists consider a three- to sixmonth supply balance in the market.

Since the new year, the MLS reported 180 active listings in Stanwood with 40 pending sales. Of those pending sales, 26 are bankowned.

Out of the 14 homes sold to date this year, five were under bank ownership.

For Camano Island, the trends are similar. With 303 active listings, 10 of the 26 pending sales are bankowned properties. Of the 13 sold, five were owned by the bank.

“The numbers are interesting,” said Mitzi Cameron, owner of Preview Properties NW in Stanwood.

Interesting, and troubling.

“The number of bankowned homes is horrible,” said Cameron.

She estimates homes are selling for at least $50,000 under value due to the saturation of sales from foreclosures. On a positive note, said Cameron, banks are getting sales pushed through, which will help increase equity for homeowners.

But she isn’t holding her breath.

Cameron expects it will take another year to clean up the foreclosure clutter.

John Arnold, real estate agent with John L. Scott in Stanwood, noted the drop in prices throughout the area has attracted buyers who have been elusive.

“All of our emphasis has been on attracting buyers,” said Arnold. “We are starting to see lots of first-time buyers out there ‘kicking the tires.’”

Historic low interest rates, affordability and home buyer tax credits are helping stabilize the market, said MLS Director Joe Spencer.

“We are encouraged to see activity gaining ground on the higher price ranges as well,” he said.

A shift in attitude by sellers is also contributing to recent activity.

“We are finally getting people to come around on their price mentality,” said Arnold.

In the game of push and pull, right now the buyers are winning.

“Some people are going to lose money,” said Arnold.

The median price for a single-family home last month in Snohomish County was $279,995, a 10.5 percent drop from last January.

However, for Island County, the median price rose 9.7 percent to $267,500.

Both Cameron and Arnold state the prices represent the low end of homes in Stanwood and Camano Island.

Staff Reporter Adam Stewart: 629-8066 ext. 115 or astewart@scnews.com.