Leavenworth Real Estate Update – Spring 2008
Leavenworth home sales have finally begun to become affected by the economic realities that surround us. Readers of this blog have no doubt seen the dollar tanking, oil prices surging and the stock market diving – even a little more so as the second quarter of 2008 came to a halt.
While the beginning of the year was kind to Leavenworth home sales, the Spring Quarter showed us that the Leavenworth and Lake Wenatchee market is not immune to outside pressures.
The number of homes on the market this Spring has far exceeded past years. Currently there are 135 homes for sale which is the high point reached at the end of last summer. The green line on the chart shows the total number of single family homes that were for sale at any point during Spring 2008. Sellers seemed to keep their homes off the market this winter, but put them on the market this spring in record numbers (the purple line).
The yellow line shows the number of houses that sold between April 1 and June 30 2008 in Leavenworth and Lake Wenatchee. This number is down significantly – down 45% from a year ago and 53% from the high in 2006.
When the purple and yellow lines are close together it means we have a sellers market. The homes being placed on the market are being sold. When they diverge it means we have a buyers market and we see the green line climb (assuming other sellers keep their homes on the market.)
The downturn in activity has effects on the appreciation of home prices. Both average and median home prices in Leavenworth have decreased from the second quarter of 2007. While the headlines might scream “prices drop”, I think “prices flatten” or remain stagnant is a more apt description.
It’s also helpful to look at the overall gain over the past four years. Median home prices are up 55% or 13.75 % per year while the average home price is up 38% or 9.5 %.
Anecdotally, I think demand remains high. Allyson and I are working with a number of qualified buyers and traffic on our websites is higher than ever.
Demand, unfortunately, is not the same as urgency. Buyers in Leavenworth have often taken their time finding the perfect vacation home or condo, and the current conditions are keeping buyers wary. Economic uncertainty is difficult and we are surrounded by it. When new listings continue to come on the market daily, buyers refrain from purchasing the less than perfect home.
Competitive pricing of your Leavenworth home and staging it for perfect presentation is key in this market. Home sellers who are fishing for a seller, but not motivated to sell, will not likely find success.
For buyers looking for a great deal, there usually are some to be had in any market. Leavenworth remains a very popular vacation spot and no one’s giving anything way. My past article about finding a deal in Leavenworth real estate is probably a good primer for bargain hunters.
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UPDATE : Click here for a Fall 2008 Leavenworth real estate update
