Kirkland Real Estate Activity Continues to Strengthen

STATISTICS JUST published by the Northwest Multiple Listing Service (MLS) reveal that Kirkland real estate activity continues to strengthen.  Pending sales (contracted but not closed) in August increased 32.8% year-over-year for single family homes and were up 56.1% from July of this year.  For the second month in a row, average prices for closed single family homes were up from the previous month, to an average of $600,000.

Pending sales for condos were down 46.2% from the August 2010 level, but this sector had seen robust activity the past several months.  The average price for condos rose 2.5% from last month, to $267,000.

So far, concerns about the European debt crisis and a possible double dip in the economy have not slowed the local housing recovery.  A quick survey of local real estate agents revealed that there has not been much of a change in traffic.  A few buyers have moved to the sidelines while others are anxious to take advantage of low interest rates.

Local hiring as well as in-migration should keep the local housing recovery going.  Continued demand will drive home prices up. The increase in housing prices and home equity will help spur consumer confidence and spending.  With home equity the main source of small business collateral and other financing, the housing recovery is vital to the growth of small business and a robust economy. Alas, the local housing and economic recovery may hinge more on what happens with the debt crisis in Europe than with Google and Microsoft's hiring plans on the Eastside.

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Michelle Spohrer is a managing broker with John L. Scott Real Estate on the Eastside who focuses on Kirkland. See her Facebook page here.