Saturday, July 07, 2012

Seattle, Pittsburgh, and Denver Real Estate Markets Sizzle in June, Double-Digits Gains in Sales, Prices

Several more metro areas are now reporting strong double-digit gains in both June home sales and home prices:

1. "Seattle-area house prices saw a double-digit increase in June — the first time that's happened in nearly five years. The median price of single-family homes sold last month was $380,000, up 10.1 percent from June 2011. It was the third straight month of year-over-year price increases, and by far the largest change. The last time the median rose by more than 10 percent was in July 2007, when it hit an all-time high of $481,000. 

Sales volumes were strong in June. Buyers closed on 2,117 houses in King County, the listing service said — 3 percent more than in May, which had been the best month since August 2007. When compared with June 2011, house sales were up 12 percent, condo sales up 16 percent."

2. In the 13-county Pittsburgh-region, the number of residential homes placed under agreement increased 18.6% in June 2012 versus June 2011, while average home sale price increased 13% ($194,500 versus $172,177).

Update: Add Denver to the list of hot real estate markets, with a 20% increase in June home sales and a 12% increase in price. 


At 7/08/2012 7:18 AM, Blogger Henry H said...

Denver had double digit sales growth in volume and price.

BizJournals - Denver Sales up 20% YOY- Prices Up 12%

At 7/08/2012 9:35 AM, Blogger Unknown said...

Yet, I'm so wary that this is merely a reaction to the record low interest rates. Who's buying?? Is it investors? First-time? If it's investors, what's the cap rate? I don't think we can rejoice that prices and transactions are rising without a lot more data. We still have a home ownership rate significantly above historic averages, and an aging population that will be downsizing for quite some time to come. I fear that the low rates are causing investors to jump on the bandwagon, only to find that they've paid too much for their investment (a continuing bubble)

At 7/08/2012 12:01 PM, Blogger bart said...

I fear that the low rates are causing investors to jump on the bandwagon, only to find that they've paid too much for their investment (a continuing bubble)


At 7/08/2012 12:37 PM, Blogger Buddy R Pacifico said...

Seattle's numbers are great, especially considering that distressed sales were only 3% of transactions.

Nationally distressed sales accounted for 25% of transactions, during the latest reporting period.

At 7/08/2012 3:33 PM, Blogger Henry H said...

This comment has been removed by the author.

At 7/08/2012 3:36 PM, Blogger Henry H said...

Are distressed sales only 3% of transactions? A report from 2 months ago reported 40% as distressed. That's an amazing turnaround in 2 months.


Forty percent of home sales in King County are now "distressed sales," according to a report from Washington Property Solutions.

At 7/08/2012 3:57 PM, Blogger Buddy R Pacifico said...

Henry H,

Here is a blog post from Seattle Bubble that shows King County at 9.5% distressed sales. I am pretty sure that the stronger Seattle specific market is at only 3%.

At 7/08/2012 6:49 PM, Anonymous Anonymous said...

Speaking of home sales, check out the comment by "dansocalguy" in this article on Seeking Alpha.
"As a realtor in Phoenix I'm seeing buyer's getting frustrated with multiple offer bids, appraisal issues, and limited inventory. More and more our brokerage is leaning toward stewarding buyer's towards new builds ..... and I have been actively researching this first hand as I'm also in the market for a new home ... builders here are once again raising prices every 3-5 homes sold. A builder in Gilbert, Az is building in a very desirable area near a new Morman Cathedral and before they (Meritage) could even establish a sales office (let alone build the model homes) they've sold over 40 homes in phase 1. This project is not an exception ... all over the valley builders are ramping up. Phoenix has tended to be a leading indicator for other markets so I think we'll start to see this spread."

At 7/08/2012 9:34 PM, Blogger Henry H said...

Buddy, That's an amazing turnaround. The chart shows King county around 25% for distressed sales in the 1st quarter and a collapse into the 2nd quarter to single digits. I wonder if the national numbers of 25% of dropped in June also.

At 7/09/2012 10:44 AM, Blogger DrSandman said...

Part of the Pittsburgh boom is due to the workers moving in to work the Marcellus Shale wells. Sleepy farms in my old neck of the woods (SW Penna.) are being snapped up in cash. Literally -- bundles of $100's.

At 7/10/2012 6:49 AM, Blogger Henry H said...

Existing home sales up 11% YOY and median prices are up 12% YOY in 29-county region in North Texas.

Existing Home Sales up 11 Percent in June in North Texas

Let's not forget Oahu's 12.5% YOY growth for June 2012.
Oahu single-family home sales up 12.5%, prices up 10%

At 7/13/2012 1:09 PM, Blogger bart said...

This Chart Proves The US Housing Recovery Will Be Local

At 7/19/2012 6:40 PM, Blogger Larry Martin said...

June traditionally is a top month for home sales and also for Mortgage loans. More houses have sold in King County in June than in any other month in six of the past eight years.

At 7/19/2012 6:48 PM, Blogger bart said...

US home sales drop 5.4 pct., fewest since October

US sales of previously occupied homes drop 5.4 percent to 4.37 million, lowest since October.

WASHINGTON (AP) -- Americans bought fewer homes in June than May, indicating the weak economy could make a modest housing recovery choppy.

The National Association of Realtors said Thursday that sales of previously occupied homes fell 5.4 percent in June to a seasonally adjusted annual rate of 4.37 million homes. That's the fewest since October.



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