Clark County home sales down sharply

Clark County home sales remained weak in November as concerns about the national economy apparently continued to sideline potential buyers, including some who may be waiting to see if mortgage interest rates will fall further.

“When things are unsettled, the unknown makes people naturally pull back,” said Kale Dunning, an associate broker with Century 21 Cascade Pacific in Vancouver, on Wednesday.

The mood of uncertainty was evident in a local report this week showing that only 318 new and pre-owned houses sold in Clark County in November. That’s down 37.3 percent from the 507 home sales in the same month last year. November’s total was the lowest for that month since 1994, according to “benchmarks,” a tracking service of Vancouver’s Riley & Marks appraisal firm.

Home prices also declined, according to the report, which showed the median sales price — half sold for more, half for less — was $229,900 in November. That was down 11.6 percent from the $260,000 median price in the same month last year, and down 3.3 percent from the October median of $235,000.

After a year-long decline in home sales, November’s low median and low sales total indicated that only moderately-priced homes were selling last month, said Dick Riley, the appraisal firm’s owner.

“We’re not seeing the upper-end sales in the $450,000 to $500,000 range,” he said.

Dunning said he is still hearing from plenty of potential buyers who are encouraged by softening home prices and lower mortgage interest rates. The national average rate on a 30-year fixed loan was 5.5 percent and could be lower when the weekly rate report is issued today.

“With rates and prices at their lowest, the educated buyer is purchasing,” Dunning said.

However, Dunning said many buyers — even those with good credit scores — are finding it more difficult to secure financing this year than in the past.

“As extremely easy it was to get financing three years ago, it is just as extremely difficult now,” he said. “There’s a lot more scrutiny.”

The Federal Reserve Bank has hinted that early next year, it might drop mortgage loan rates to 4.5 percent for first-time home buyers in an effort to revive the nation’s housing industry.

On Wednesday, a federal regulator speculated that rates could fall “well below 4 percent.”

James Lockhart, whose agency oversees government-controlled mortgage giants Fannie Mae and Freddie Mac, made the comments at a meeting of Women in Housing & Finance, an industry group. He did not say how long it would take to achieve such a drop and has declined to provide a firm target for mortgage rates.