September 2009 Awesome for Mercer Island!

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Market Statistical Summary for September 2009

 

King County

King County posted its best month since June 2007 with 2245 Pending Sales in September. Pending Sales were up 66.1% over September 2008 while the $/SqFt remained stable. The List to Sales Price Ratio remained at 96%. Median Prices were actually up 2.4% over the prior month but still down 6.6% from September 2008—although the gap is narrowing. The Months of Inventory index was down 52.2% over the prior year to 4.3 months. The Average Sales Price remained stable at $458,000—the same as the prior month but down 5.8% from September 2008. The Absorption Rate was 23.1%—up a whopping 108.1% from 11.1% in September 2008!

Eastside

The Eastside showed even greater strength than King County with Pending Sales up 79.1% from September of 2008—setting a new record in our changing economic times and reaching the highest sales volume since July 2007. No change in the $/SqFt indicates a glimpse market stability. The List to Sales Price Ratio continues to improve—leveling out at 95% for the month. The Median Sales Price, which is down 5.3% for the year, was up 0.2% for the month. The Months of Inventory index was down 53.5% to 5.3 months. Average Sales Prices have remained stable for the past three months, closing out the month at $616,000. The Absorption Rate of 19% was at its highest in more than two years and a full 115.9% above that of September 2008.

Mercer Island

Mercer Island had been truly an island to its own as the more moderate price ranges all around it began picking up steam. All that began to change in September when Mercer Island posted a 116.7% gain in Pending Sales activity. Prices are still somewhat soft, however, with a List to Sales Price Ratio of only 93%. Median Sales Prices were up 12.9% for the month to $830,000, but down 12.7% from September 2008. The Months of Inventory index was down 56% to 7.3 months. Average Sales Prices were up 0.7% for the month but down 25.8% over the prior year—impacted most by continued stronger sales in the lower Island price brackets. The Absorption Rate of 13.8% was up 130% over the prior year and 22.1% over the prior month.

Seattle Metro

Pending Sales were up a respectable 61.1% over September 2008 and 23.5% over the prior month to 794 units. $/SqFt was up slightly and the List to Sales Price Ratio remained a very solid 97%. The Median Sales Price was the same as in August 2009 but down 5.7% from the prior year. The Months of Inventory index was the lowest in the Puget Sound region with only 3.6 months on inventory currently on the market. Average Sales Prices were down 4.3% from the prior year to $473,000. Not surprisingly, the Seattle Metro market also had the strongest Absorption Rate at 28.1%—up 96.5% from that of September 2008.

Definitions

Active Listings: All homes currently for sale but not yet sold.

Pending Sales: Homes under contract but not yet closed for that month.

Sold Listings: Homes sales closed in a given month.

$/SqFt: The price per square foot determined by dividing the sales price by the square footage of living space.

Average Sales Price: The average price of all homes sold that month.

Median Sales Price: The price that represents the mid-point of all homes sold that month where 50% of sales prices are above and 50% of sales prices are below.

List to Sale Price Ratio: Represents the comparison of sold price and list price of the homes sold (sold listings) as a percentage.

Months of Inventory: Represents the number of months of inventory on the market based upon the number of homes for sale (active listings) and the number of homes pended that month. For instance, if there are 1,000 active listings and 100 of them sold in a given month, it would take 10 months to sell the current inventory of homes for sale.

Rate of Absorption: Represents the percentage of the current active listings that are being absorbed (or pended) each month. For instance, if there are 1,000 active listings and 100 of them sold in a given month, the rate of absorption would be 10%. 10% of the market is being sold in that given month.

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