New single-family home sales increased 11% in June.  In addition, June was the 1st month of the year the units sold actually surpassed June of 2008 in many areas.

Active listings in the Northwest Multiple(NWMLS) are actually down 19.5% Y-T-D in 2009 compared to 2008 which is surprising.  I assume a lot of people are simply holding until the market stabilizes and even starts edging upward.

On Closed Sales in the NWMLS, the Average and Medium prices are down 13% - 15% in 2009 over 2008 at the end of June.  In varies by area, of course.  It seems King County took its biggest hit the 1st quarter of this year, BUT the average DOM (days on market) is only 83 in 2009 for King County which is excellent.  It is 228 days in San Juan County.  Number of units sold to date compared to 2008 are down 23% overall.

There is no doubt 2nd quarter was much better than 1st quarter of 2009, but it typically is due to seasonal activity.  However, it seems the Realtors as well as Buyers are feeling the market is leveling out and may stay steady here for awhile.  No one is expecting an upward swing in prices anytime soon and when it does come, it’s expected to be extremely slow.

There is a lot of concern (as well there should be) about the next round of interest rate change in ARMs (Adjustable Rate Mortgages).  I have had a lot of clients coming in to try to refinance early since they have been made aware of the current financing situation and they simple are not qualified for a current 30 year fixed mortgage.  They are looking at mortgages resetting at 12%-13% next year and they do not have enough current Adjusted Gross Income to support a regular mortgage.  Naturally, this is also not the time to try and sell their home.  I have no idea if part of the Stimulus will deal with these loans coming due next year, but we can expect to see another wave of short sales and foreclosures if these loans are not re-negotiated.