Pending New Home Sales in Bothell out Pace Existing Homes

As of May 16, 2011 pending new home sales were out pacing resale home sales in the Bothell area.  Within the sampling area showed 135 new homes available for sale with 11 pending sales in May for a 12.3% absorption rate, existing re-sale homes available were 297 with 35 pending sales in May for an absorption rate of 8.5%

One of the factors that may have contributed to this is there is a wide selection of new homes available and buyers may be moving to safer grounds choosing to stay away from re-sales particularly the bank owned and short sales.  Short sales and bank owned re-sales made up 40% of the 35 re-sale homes that went pending in May.

It’s still a bit early to tell how buyers, builders and sellers will react to going forward. New home closed sales in the Bothell marked peaked in March with 38 closed single family new home sales, trending downward in April with 24 closings and May lacking behind with 9 closing in the first half of May.

From the 1st of May until the 16th there have been 17 price adjustments on new homes mostly above the $400,000 price level which typical is more of a move up market.  Interest rates are still very good hovering around 5.5% for a 30 year fixed rate. Will the wide selection of new homes available and low interest rates be enough to attract more home buyers or will builders need to offer more incentives to get rid of their inventory before the dog days of summer?

For more information regarding buying or selling real estate in Bothell contact Adrian Willanger 206 909-7536.