Home Sales Spike! An update on our local economy.

Everett, Wash.

Published: Sunday, August 9, 2009

Biz week

Home sales spike

After months of bad news, real estate agents got some good news last week with word that home sales had risen by 19 percent in July in comparison with the same month a year ago. It was the second straight month that sales had risen after a two-year skid. Prices continued to fall, which helped the sales hike, agents said. Interest rates also have stayed low. Officials said there also has been a lot of interest in the $8,000 tax break that is scheduled to end in November.

Bank losses: Lynnwood-based City Bank was the latest to announce losses caused by the continued recession. The bank lost $22 million during the last three months as it continued to work through nonperforming loans, especially in the areas of land development and construction. In some cases, the bank has been expanding loans in those areas so that homes can be constructed on vacant lots before they’re sold. Empty lots aren’t selling, but homes are at the right price.

Expanding south: Pat Fahey, CEO of Everett-based Frontier Financial Corp., said the merger with a New York firm interested in investing some money should help with the bank’s planned expansion. He said Frontier would like to expand to Clark County and then into Oregon, where it already has branches in Portland and Salem. “Frontier’s position in Oregon is not well developed,” he said.

Sign of the times?: The Boeing Co. unveiled its new sign last week at the Charleston, S.C., factory it recently purchased from Vought Aircraft Industries. The new Boeing sign went up on a day when local officials met in Lynnwood to discuss what needs to be done to keep Boeing working and expanding in Washington state. Issued discussed included work stoppages, outsourcing, training, taxes and transportation.

Mike Benbow, Herald Writer
© 2009The Daily Herald Co., Everett, WA