REPORT: Pierce County Housing Market Continues Showing Improvement Signs

A story in today's News Tribune says that the housing market in Pierce County continues to show signs of improvement.

According to Northwest Multiple Listing Service data released Monday, home sales rose and median prices largely remained stable in May. Mortgage interest rates also have fallen below 4 percent.

According to Rolf Boone's story:

Sales rose more than 8 percent to 865 units last month from 796 units in May 2011, while median prices were essentially flat in the same period, falling 1.03 percent to $192,000 from $194,000, the combined single-family residence and condo data show.

That’s much improved compared to earlier this year when median prices frequently plunged by a double-digit margin. In the year-over-year February period, for example, Pierce County median home prices fell more than 16 percent to $169,450.

Mike Larson, president of Allen Realtors of Lakewood, is quoted as saying the county's falling inventory of homes for sale is creating a more balanced housing market and stimulating sales. The combined data show the inventory down more than 30 percent to 3,758 units from 5,501 units.

"The supply and demand is not so extreme,” Larson said. "When the supply of homes is higher, such as when its closer to 5,000 units, buyers become choosier and sellers are forced to lower their prices to compete for those buyers."