Units in February
2010: 356
2009: 262
2008: 381
2007: 572
2006: 808
Source: Riley & Marks Inc., Vancouver.
Banks unleashed a backlog of repossessed homes in February, which were priced to entice more buyers to step into the market. That contributed to a 35.9 percent rise in sales, according to a report released Wednesday.
But bargain-priced homes that were foreclosed on and those being sold as short sales continued to drag down median home prices throughout the county and kept the housing market just out of reach for move-up buyers, real estate experts say. That was particularly true for those who continue to owe more for their current home than it would fetch on today’s market.
The total number of new and existing homes sold here in February was 356, an increase of 35.9 percent compared with the same month in 2009, according to Riley & Marks appraisers in Vancouver. The numbers, which were up substantially from January’s total of 318 home sales, showed a year-over-year increase for the sixth month in a row.
However, the median selling price of $209,900 in February was down 6.7 percent from the median of $224,900 during the sale month a year earlier.
The lower selling prices are driving the rise in sales volumes.
“Bank-owned properties are getting multiple offers because they are listed for less,” said Tracie DeMars, a Vancouver real estate agent with Re/Max Equity Group Inc. in Vancouver.
First-time home buyers are slowly snapping up the bargain-priced inventory, which helps lenders who were stuck with homes they reclaimed in foreclosure.
But, the rise in the number of sales hasn’t yet enabled the market to overcome the impact of the number of foreclosed homes still available.
That is hurting home values and keeping potential move-up buyers out of the market.
“The vast majority who would like to move up can’t afford to. They still owe too much on their home,” DeMars said.
Move-up buyers stand to receive a $6,500 federal tax credit if they purchase a new residence after owning their first home for five years.
“They have to sign an agreement with the seller before April 30th and close by June 30th,” DeMars said.
The federal incentive and low home prices continue to motivate buyers, said Linda McClellan, president of the Clark County Association of Realtors and an agent for Prudential Northwest Properties in Vancouver.
“They’re very aware of the deadline. They want a house and they want it to close now,” McClellan said.
She added that many home sellers are beginning to price their homes more appropriately for the falling market.
“If they’re selling their home, they know how to list it. They’re being realistic if they’re really willing to sell,” McClellan said.
Foreclosure rate slows
Clark County’s rate of foreclosure slowed in February, although the county still had the third-highest rate of foreclosure among Washington’s 39 counties, according to figures released Wednesday. Last month there were 318 households in some stage of foreclosure here, down from 388 foreclosures in February 2009, reported California-based RealtyTrac, which tracks nationwide foreclosure data.
That’s why some expect local home prices to continue declining this spring, as lenders will likely lose patience with delinquent home owners, scrap modification programs and flood the market with a new wave of foreclosures.
“They are trying to allow people to live in their homes. But if they can’t, they will foreclose,” said Scott Anthony, a real estate sales specialist with Windermere Real Estate/Stellar Group in Vancouver.
Clark County home building also appeared to rebound in February, as measured by permits to build single-family houses. The county issued 40 such permits last month, up 208 percent from the 13 permits issued in February 2009.
