How’s the Real Estate Market in Snohomish County During COVID19?
Amy Wagner here…As I enter into my 16th year in real estate, I’ve seen some pretty crazy market trends, transitions, highs, and lows. We are almost 3 months into this Covid-19, Pandemic and I’d like to share a few facts along with my perspective on this uncertain time and how it relates to the real estate market.
First and foremost, I hope you are healthy, safe, and managing to see the good in the people and things around you as we do have a lot to be thankful for.
My thoughts will be in bullet point fashion to take all emotion out of what is going on and how I see real estate moving forward.
Current Facts & Stats:
- Real estate for me has NOT slowed down during Covid-19 thus far.
- We have extremely low inventory. 1.5 months’ worth of inventory (4-5 months is considered a balanced market)
- Low inventory- Homes are selling fast, multiple offers and people are getting top value for their homes. Average days on the market was 17 days for the last 2 months.
- Median home price in Snohomish County for the month of April was $519,950. Sold home values up 5.5%, and under contract homes are up 9%, compared to April last year. Regionally speaking we are up 8.1% Y-o-Y.
- Supply & Demand- Due to Covid-19 the homes on the market are down 23%, yet the under contract are down 14%, which means we are absorbing our inventory quickly. We still have strong buyer demand.
Projections for Real Estate Trends after Covid19:
- This is NOT like the 2008 Housing Crisis. During the housing crisis 2007-2009 Mortgage credit availability was practically unlimited making it very easy to qualify and get a mortgage loan. They gave loans on stated income, little credit etc. Today the availability of mortgage credit available is one fourth it was then, making the loan process and credit checking very vigorous. Not just anyone can get a loan. We had 8.2 months’ worth of inventory back in 2007, where today we have 1.5 months’ worth. In 2008 the home equity cash-out refi’s were at $240 Billion, 2019 the cash out refi’s were at $74 Billion. Americans are being smarter with their equity & money. Today 53.8% of all homes in America have at least 50% equity. 37% of homes are owned free & clear, 26.7% of the mortgaged homes have at least 50% equity. Today’s figures are much different than what we had in the 2008 housing crisis. We have a much stronger, healthier, tighter lending housing market.
- Major Institutions calling for a “V” type recovery. (Goldman Sachs, JP Morgan, Morgan Stanley
- Are we going into a recession? Historically speaking, recession DOES NOT equal a housing crisis. “With the exception of two recessions, the Great Recession from 2007-2009, & the Gulf War recession from 1990-1991, no other recessions have impacted the US housing market, according to Freddie Mac Home Price Index data collected from 1975-2018. Home prices increased in value during 3 out of the last 5 recessions.
- Home ownership and real estate investments have been proven to be an important source of wealth creation, enabling current homeowners and succeeding generations to move up the economic ladder.
This interesting time will pass, it creates opportunity, I personally have taken advantage of this time and increased my real estate ownership by buying a duplex with a lot large enough to develop in the future. This was a scary decision, some might even say risky for the current times but with all the educating, stats, classes, and coaching I’ve invested in, I feel extremely optimistic for the future. With that being said, the above information is based on the estimated numbers for Snohomish County. I have stats for your city, county etc. if you want to reach out and have a discussion, I am here for you and I can get you the relevant information as it realates to the real estate market during COVID19 and your sepcific area. My team and I at Prime Listings Group, look forward to helping you.
Be safe…I look forward to talking to you soon.
Prime listings Group
“We can help you get there!”