Sale Of New Homes Edges Up

The market for newly built homes in the Valley is still huffing and puffing for strength after a slow start this year.

New home sales edged up slightly in June, after a 50 percent drop in May. But sales of new homes are still down 40 percent compared to June of last year. The average home price was also down $4,000, from $124,956 in 1996.

Real estate experts maintain that last winter’s ice storm is partly to blame for the slow recovery.

“We’re still coming out of a really tough winter and fall,” said Tony Higley, owner of Certified Appraisal. “We’re also experiencing a buildup of inventory in resale homes … that heavy competition is creating a downturn in new construction starts.”

Market time was also slower in June. It took Valley sellers about 90 days to close their homes. That’s 13 days longer than May.

But there are signs that the market is gaining momentum. Interest rates have dropped by about a point in the last 45 days, and are now below 8%.

“That should be a real plus for people wanting financing to buy new homes,” said Gail Fox, manager of the Valley Norwest Mortgage. “They’ve definitely improved in the last three weeks. Things are holding their own.”

Another good sign: Total home sales in the Valley were up in June by about 15 percent. Two months ago, 109 homes were sold, but in June there were 127 closures. Total volume for the Valley was $15.4 million, which was $2.3 million over May.

The average price of a Valley home sold during June was $120,906. The South Hill, where the averice price was $146,250, had the highest price in the Spokane area last month.

Fox agreed that the ice storm hit Valley residents, and the Valley’s real estate market, hard.

“People are still trying to catch up from the payments that they couldn’t make,” said Fox. “They had to spend money that they didn’t have.”

The most expensive home in the Valley sold for $350,000, said John Orr, the listing agent for Tomlinson-Black who sold the house, a custom rancher in the southeast part of the Valley. The home was styled after a Frank Lloyd Wright design and was marked by its extensive use of lighting, Orr said.

Special features of the home included a 3-car garage, a redwood wraparound deck, a slate courtyard entry, and a breakfast nook with sliding glass doors to the deck.

, DataTimes