2012 is beginning with positive news for the housing market. According to national statistics, existing-home sales are on the rise (pending sales rose 8% from January 2011 to January 2012). For the Pacific Northwest region, and more specifically Mercer Island, this is a positive sign as larger and more luxurious homes will benefit from move-up buyers.
According to an article published last month in Realtor Mag, existing-home sales rose 4.3 percent in January, marking the third gain for sales in the four months prior. The National Association of Realtors (NAR) reported that in 2007 unsold listed property had risen to a record high of 4.04 million. Since then, it has declined, and currently sits at 20.6% below where it was last year. This signals that the gap between buyers and sellers on the market is starting to even out. People are actually buying homes and keeping them longer.
NAR also reported last month that despite the appearance that buyers are downsizing or choosing smaller living spaces, there is a distinct group of buyers who are choosing larger, more upscale homes with more bedrooms, more amenities and additions that may have before seemed superfluous, such as finished basements, outdoor entertainment spaces and multiple-car garages. In other words, the types of homes commonly found on Mercer Island. The Seattle P.I. even reported http://goo.gl/SCbrc that in 2011 there was a rise of waterfront home sales on the island (30 homes total), and that 18 of them were multi-million dollar sales.
It must be acknowledged that the people buying such homes are financially stable and admittedly a small percentage of the population. However, for Mercer Island sellers there is a double advantage—not only are property values rising, but a new demand for larger homes with upscale amenities gives them the ability to better control their asking price.
Ken Urman, Realtor, Ewing and Clark East, Mercer Island
