Kirkland Real Estate Market Continues Recovery

THE KIRKLAND real estate market continues to see signs of recovery, based on September sales activity data just published by the . Pending sales (contracted, not yet closed) of single family homes rose 3.8% over August and were up 42.1% from September 2010. Inventory is holding steady at 5.2 months, a slight increase over the recent low of late spring, but half the level of a year ago.

The news for the condo market is even better, with pending sales for September increasing 46% from August and rising 90% from levels one year ago. Even if only half these sales close due to short sales failures or financing difficulty, this absorption will make a significant dent in recent high levels.

Prices for both single family homes and condos continue to stabilize, just above the spring bottom. Most agents believe that the market would be stronger if buyers could find the homes they want. But potential sellers, who have lost some or all of their home's equity in the market downturn, are reluctant to sell at current prices.

It's good news for real estate investors, though, as these potential buyers are renting longer than they would have otherwise. Investors are estimated to represent 25-30% of the current market as they can generate returns higher than some other investments such as dividends and bond yields, and can benefit from any future real estate market upturn.

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Michelle Spohrer is managing broker with John L. Scott specializing in Kirkland and the Eastside. See her Facebook page here.