When talking Washington condominiums, we often mean Seattle condominiums, and Seattle condominiums have had an interesting year so far. The median price actually rose at a modest 3.8% over the summer (though still an overall 9.6% drop from a year ago) as inventory levels dipped slightly. It is certain that the federal tax credit for first-time homebuyers has also helped. This raises an interesting matter: as the tax credit expires in November, will it be extended to help sustain the modest stimulation it’s effected, or will its expiration result in market declines across the nation?
Seattle condominium prices constitute an interesting case of Washington residential real estate prices in this recessionary economy. Median values for the downtown area have increased 11.5% from over a year ago, likely due to closings for newer developments. West of town, the city’s realty experienced an 11.7% year-over-year increase. Condominium inventory has actually dropped 6.4% from a year ago. Those listed under $350,000 accounted for 74.8% of all condo sales while 10.6% belonged to those over $500,000. Only 64.4% of sales were under $350,000 and 14.9% were priced over $500,000 when compared to the same period last year.
And just when you think that all the subprime loans have thoroughly shaken out the mortgage industry of its bad apples, a new bottom-feeder scheme is making its way among weary homeowners struggling to keep up with their payments. Washington’s Attorney General has recently announced his office is teaming up with the Federal Trade Commission and counterparts from other states in a nationwide crackdown on so-called foreclosure rescuers and loan modification businesses charging hefty up-front fees while typically providing no help at all. In fact, many such companies actually harm homeowners by advising them not to communicate with their banks and lenders at all.
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