Agent: Home Prices are Tied to Neighborhood

Don’t believe everything you read! Home prices have fallen! Inventory is down! The housing market has stabilized! The economy has turned for the best!

We see these headlines constantly. All of these reports are a general reflection taking every neighborhood and price range into consideration. These reports help to create a picture of what the overall market is doing. The most important information for any homeowner thinking about selling is what is happening in their specific neighborhood.

Pricing a home correctly is challenging. No one can calculate exactly what the future will bring. But, if you are planning to buy or sell in the near future, consistently keeping tabs on what is happening will ensure that your purchase price or sell price meets market conditions. Pricing based on a one month increase is not realistic. Pricing based on watching at least a 6 month consistent increase definitely has more value.

Prices vary from one zip code to another. Prices can vary between neighborhoods that are connected.

The following are numbers from reports by Trengraphix based on information from the NWMLS.

The Sammamish zip code 98075 covers the properties bordering Issaquah.

From Sep. to Oct. 2011, one month averages:

Listings are down 7.1 percent; Solds are down 34.9 percent; Pendings are up 14.3 percent.

Listing Prices are down .06 percent; Avg sold prices are up 5.5 percent.

From Oct. 2010 to Oct. 2011, 1 yr averages:

Sales are down 7.4 percent; Solds up 10.8percent; Pendings are up 28.6 percent.

Listing prices are down 11.1 percent; Average sold prices are up 5.1 percent.

The Sammamish zip code 98074 covers properties on the Redmond side of the plateau.

From Sep. to Oct. 2011, one month averages:

Listings are down 8.6 percent; Solds are down 32 percent; Pendings are up 23.3 percent.

Listing prices are up 1.7 percent; Avg sold prices are up 7.9 percent.

From Oct. 2010 to Oct. 2011, 1 yr averages:

Sales are down 7 percent; Solds are down 15 percent; Pending up 48 percent.

Listing Prices are down 11.1 percent but average Sold prices are up 4.8 percent.

Communities also show a wide variance:

Sahalee: Oct. 2010 to Oc.t 2011: Listing prices are down 5 percent and average sold price is down 38.6 percent.

East Lake Sammamish: Oct. 2010 to Oct. 2011: Listing prices are down 27.5 percent and average sold price is down 14.4 percent.

Pine Lake: Oct. 2010 to Oct. 2011: Average listing price is down 19.1 percent but sold price is up 23.1 percent.

It is clear from these numbers that every report is just a snapshot of the market. Every community is different and should be evaluated differently.

To get a clear picture of what your home is worth, you must consider what is available in your neighborhood. Do you have competition from new construction, foreclosures or bank owned properties? Does your neighborhood have special features, is it waterfront etc.? Is the decrease in average prices based on the fact that more affordably priced homes have sold? This fact, especially, is never calculated into any findings.

Now, more than ever, you need a Realtor to help you set a price that will enable your home to sell for top dollar in the shortest amount of time.

With so many variables in today’s market, it is best to get specific facts. Even with new regulations requiring a faster response by the banks on distressed properties, the delays continue making homes that are not distressed much more appealing to buyers.Buyers, sellers and appraisers will have to take a careful look at the condition of the distressed property before making any decisions.

How is it possible to realistically compare many of the short sales that are in need of major repairs to a home that is not distressed? How do you include this information into an up to date housing report?

Forecasting the future is easy. Being right is considerably more problematic.