Whistling Past The Graveyard

As we find ourselves deep in the chaotic real estate market of 2007 we are getting a first hand picture of the state of the market here in Puget Sound. We're seeing houses (new and resale) going for strong prices and there aren't that many homes on the market right now (driving around you don't see too many signs).

Here is a quite from a somewhat upbeat article in yesterday's Seattle Times (Full text here).



WASHINGTON — The slump in housing deepened in the final three months of last year, with sales of existing homes falling in 40 states and median prices dropping in nearly half the metropolitan areas surveyed.

Although Washington state's sales of houses and condominiums declined 16 percent, prices continued to climb, thanks to a generally strong economy.

In the Seattle-Tacoma-Bellevue area, prices rose 11.3 percent in the fourth quarter compared with a year earlier, the National Association of Realtors reported Thursday. Spokane prices were up 12.2 percent, and Portland up 11.2 percent.

Formerly red-hot areas were among the hardest hit as the five-year housing boom cooled considerably in 2006.

While some economists think the worst may be over for housing, others predicted more price declines to come in some areas until near-record levels of unsold homes are reduced.

The Puget Sound area is not now reporting an excess housing supply.