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Market Starts the year with momentum
The local housing market starts the year with a nice bit of momentum. Buyers in 2009 were attracted by moderating home prices and low mortgage rates, which combined to create some of the highest levels of affordability on record. After a tough start to the year, area housing sales finished 2009 on a strong note. Through the first half of 2009, home sales fell 18% compared to the same period a year earlier. The broader economic conditions, including a falling stock market and rising unemployment, rattled consumer confidence at that time. Throughout the year prices started to come back in line with our market’s historic levels of appreciation. After an 8% drop in 2009, Chart 1 shows average prices are nearly back to the level we’d expect. With the price reductions, buyers have jumped back into the market. In the second half of the year, home sales were up 10% over 2008 levels. Buyers are looking for value, and they are acting quickly when they see it. Well-priced homes in all price ranges are selling at a record pace. Homes that did not require a price reduction were selling in an average of just 32 days (See Chart 2). That is nearly two weeks faster than during the seller’s market in 2006. By the same token, overpriced homes were ignored by buyers. These homes sat on the market nearly six months longer. Remarkably, these homes sold in an average of just 29 days after the price was reduced to market value. With many home prices back to sustainable levels, 2010 sets up to be a better year for the local housing market. The shock of the recession kept a lot of would-be home buyers on the sideline. Their reasons for moving hadn’t changed, but they put off buying. With consumer confidence on the rise after two consecutive quarters of positive GDP growth, people are shopping again. They are recognizing the opportunities that exist in this market. No doubt the biggest threat to a sustained recovery in our local market will be jobs. While employment is a lagging economic indicator, we’ll all keep a sharp eye on how the state deals with the budget deficit and what that means to local jobs. Even with that challenge, Thurston County’s unemployment rate is a couple of percentage points below the state’s rate and even further below the national rate.

We expect to see a lot of activity in the lower price ranges – sales in the under $200,000 range were up 47% last year. Lower prices and the first-time buyer tax credit are generating buyer interest. The supply of foreclosed properties is trending down, which is a good thing; however there is still a signifi cant number on the market. This is keeping prices for buyers at very affordable levels. We also expect to see well priced homes in the middle price ranges, $300,000 - 500,000, start to grow. The federal government is now offering a tax credit to repeat buyers (see the story below). This is creating more interest in trade-up buyers who know that a down market is the best time to trade up.


Perhaps the most telling number is that overpriced homes are finding buyers in an average of just 30 days once they have found the right price. With such starkly different numbers, it has never been more important to have great knowledge and counsel in a real estate transaction. Our commitment to clients in that regard is paying off. While most real estate companies are flat or shrinking, ours stands alone in significant gains in market share, increasing more than 11% this year. Our company once again ranks as number one in Thurston County home sales. This is achieved by a singular dedication to service excellence.
EXPANDED HOME BUYER TAX CREDIT EXPIRES SOON Most home buyers now qualify for a significant federal income tax credit. First-time home buyers will receive an $8,000 credit for any home purchased at $80,000 and higher. Repeat buyers, who have owned a home for five consecutive years out of the past eight, will receive a $6,500 credit for any home purchased at $65,000 and higher. These tax credits are available only for the next couple of months. To receive the credit, the buyer must have a home under contract by April 30, 2010 and close by June 30, 2010. In today’s market, there are a lot of homes that provide value, and still others that don’t. If you know someone who is thinking of buying, I would be happy to help guide them to the opportunities that exist. Our Realestate Blog One way we are helping is by sharing our knowledge on our enhanced real estate blog. It has more market news than ever before. We hope it provides a better understanding of the local real estate market. If you have a moment, please visit the site at: www.coldwellbankerolympia.blogspot.com. We look forward to your thoughts. And as always, thanks for your referrals. We genuinely appreciate your trust and confidence.
	Marketing Solutions We also provide the latest cutting edge marketing solutions. Our online presence is second to none. We’re the most-visited real estate brand on the Web according to Nielsen’s January-April 2009 NetView Report. Recently, we launched a mobile website that is optimized for today’s hand-held smart phones. With so many people bypassing the PC for their phones, we wanted a site that was optimized for the smaller screen size. People who enjoy searching this way will love our mobile site: www.ColdwellBankerOlympia.com. We are the first to launch such a site. We know this will help our buyers and sellers get connected. ;
Virtual Tours We also continue to lead the way in virtual tours. All of our homes are featured with virtual tours, which are favored by the online shopper. Now our tours can be loaded to even more places, like our new Coldwell Banker YouTube Channel, Facebook and more.
Recent Blog Posts $8,000 first-time homebuyer tax credit is drawing in more buyers, but those who haven’t acted face losing the opportunity. Buyers are seeing the best affordability in more than five years and the sales numbers for June show they are acting on it. Olympia home listings featured in New York’s Times Square. To promote its new mobile website, Coldwell Banker has created an interactive website. Many of our local listings have been featured there. Visit our Blog to read these stories and more about our local housing market. www.coldwellbankerolympia.blogspot.com Thank you for your referrals