Seattle/Eastside Condo Sales, August 2009

(The absorption rate, the percentage of condos selling,  is the number of condos for sale in any given month divided by the actual number of condos sold that month.  So if the absorption rate or chance of selling is 10% that means out of 100 condos for sale, 10 received offers and sold.)

August, 2009                            1429 condos for sale          206 condos sold           14% chance of selling.

July, 2009                                 1441 condos for sale          203 (now 171) condos sold   14% (now 12%) chance of selling

August, 2009                            1495  condos for sale         159 condos sold         10% chance of selling.

*Adjusted from previous month’s original numbers to reflect the actual number of condos sold and closed.  Some of the sales originally reported last month failed and did not close.

More Seattle Eastside condos are selling. Numbers are more than double the figures from January and February of this year.   But still, some sales are falling apart and not closing because of inspection, financing issues and appraisal issues.

Sales don’t close for a variety of reasons: an appraisal that came in lower than the selling price, an inspection that both buyer and seller couldn’t agree upon or a lender who didn’t put the loan package together properly.  Unfortunately, there are other reasons sales fail to close, such as short sales in which a seller is selling a condo for less than is owed on the property and the bank does not agree to sell the property at the price agreed upon between the buyer and seller.

Important news for all condo buyers: FHA spot approvals will be going away.  If a unit in a  condo association could meet designated FHA guidelines and the whole complex is not approved, then an offer and approval for this spot FHA loan must be approved by the lender by October 1st, only two weeks away. FHA financing allows for a borrower to put just 3.5% down.

The absence of FHA spot approvals and the end of the $8000 first time home buyer tax credit could affect the number of condo sales in the future.