King County home prices tumble in August

Compared to the same period a year ago, homes in King County last month were selling for prices up to 10 percent lower, according to a real estate organization.

The Northwest Multiple Listing Service (NMLS) also reported that the housing market was held back by tighter credit and the forthcoming elimination of non-profit downpayment assistance programs.

Locally, the housing market lags behind year-ago benchmarks but is doing better than most other metro markets around the country. One local real estate leader here said move-up buyers have “an amazing opportunity.”

In King County, the median price (half higher, half lower) for single-family homes and condominiums whose sales closed in August was $388,350. That’s about 6.4 percent less than in August 2007, when the median price was $415,000, according to NMLS.

For single-family homes only (excluding condos), the median price for last month’s completed sales was $314,000, about 10 percent less than a year ago, when the median price was $349,900.

Condo prices by themselves were down about 4.8 percent from a year ago, dipping from $260,000 to $247,500.

Asked about the potential impact of the strike by Boeing employees who are members of the machinists union, Dick Beeson, director of NMLS, said it could have a ripple effect long-term, but not “too dramatically.”

On what NMLS calls a bright note, brokers and lenders suggest the Sept. 7 announcement by the federal Treasury Department to place Fannie Mae and Freddie Mac under federal control could ease the U.S. mortgage market crisis and help lower mortgage costs.

“I can’t stress enough what an amazing opportunity exists right now for move-up buyers,” said J. Lennox Scott, chairman of John L. Scott Real Estate. “The price gap between the more affordable price ranges and higher price ranges has narrowed, which means these buyers can afford a new home at a premium value.”

Beeson said low interest rates and abundant selection makes now a good time to buy, but he acknowledged the new environment for borrowing is hindering some would-be buyers.

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