A Real Estate Boom in Kirkland?

In spite of the depressing national and regional headlines about the state of the real estate market, we are having a bit of a boom in Kirkland.

The Northwest Multiple Listing Service (MLS) just published sales statistics for June 2011, and the results were quite encouraging. Pending sales (homes under contract, but not yet closed) increased 7.3% over May 2011 and were up 49.2% over June 2010. The median price was down about 5% from a year ago, but up 2% from May, 2010.

The story is even better for the condo market. Pending sales were up a whopping 283% (no, that is not a typo) between June 2010 and June 2010. Median condo prices rose 16.7% for the same period. Another positive improvement is inventory levels, which are down to 4.0 months for single family homes based on closed, but not pended sales. 

Over five months of inventory indicates more of a buyer's market, while two months or less indicates a seller's market. This would mean that we are currently in more of a balanced market right now, at least for single family homes. Not so for condos, though, as inventory levels are at 7.8 months. This part of the market is still challenged. Many of the large number of condo pending sales are short sales and may not close as the property owners may choose to go to foreclosure instead.

However, even if only half these pending sales close, that will have a positive impact on the condo inventory levels, and ultimately, on prices. The tightening inventory situation tends to drive prices up. My realtor colleagues and I are seeing multiple offer situations again as there are more buyers for certain home types than sellers.

These improving real estate statistics are not the result of government stimulus programs. It would seem that low interest rates, low prices, local hiring, and in-migration has created it's own stimulus program.