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In March we saw rising mortgage rates, however, rates are not yet slowing home sales in most areas across Washington state. Last month’s report showed a 7.4% year-over-year drop in pending sales, this decline is likely a reflection of limited supply. By now, we would start to see rising mortgage rates impacting home sales and/or prices, and that has yet to happen despite rising interest rates. Freddie Mac reported the average rate for a 30- year loan rose 4.56% last week, with rates climbing at the fastest pace in almost three decades.
We expect mortgage rates to continue trending higher in the coming months, but for now, I am not too concerned. NWMLS Brokers reported 10,059 pending sales (mutually accepted offers) during the month of March across 26 counties. That is down from the year-ago figure of 10,863, but compared to February, the volume of pending sales jumped 31%. The market is following the normal seasonality of Spring, this season brings more resale listings coming on the market. MLS report shows brokers added 11,197 new listings of single-family homes and condominiums to inventory during March, up from the year-ago total of 10,562. This is up from February’s figure of 7,920 for a gain of 41% This was also the highest volume of new listings added during a month since September 2021.
The MLS reported only 0.58 months of supply area-wide. King, Snohomish, and Thurston County reported less than two weeks. We continue to see fierce competition for the available inventory. We are seeing buyer fatigue as many have written up to 15 offers before getting one accepted. We are still seeing strong offers, pre-inspections, and financing options in place. Median prices continue to escalate. Out of the 26 counties that make up the MLS, only one county (Ferry) reported a year-over-year price drop, and only 3 counties had single-digit increases: all others had double-digit gains from a year ago.
Northwest MLS figures show prices in the four-county region (King, Kitsap, Pierce, and Snohomish) have surged by nearly $200,000 (38.5%) since March 2020, jumping from a median price of nearly $520,000 to $720.000.
Census reports indicate that people are moving out of King County. Such reports are allowing surrounding counties, such as Snohomish, Pierce, and Kitsap to prosper. This is due to a lack of affordability & King County’s inability to create new inventory given restrictions on development and tight labor markets. It seems “work from home” policies are helping people decide to live in other places and we suspect this is a trend that will stay. With rising interest rates and fuel prices, it will be an interesting time for the markets along the I-5 corridor.
Snohomish County reported 1,767 new listings, 517 active listings, 1,543 pending sales, and 1,238 closed sales. .42 months of inventory and a median price of $758,707. This means there is just under two weeks’ worth of inventory in Snohomish County. Snohomish County had the most acute shortage of all counties reported in the NWMLS. Historically this number indicates what we can expect for our Spring market. We do NOT have enough inventory! As interest rates climb we will keep a close eye on these numbers, for now, you can still expect multiple offers, over asking prices, and waived contingencies.
Not everyone shares a rosy outlook, there was a report from the Federal Reserve Bank of Dallas that stated price and value have “become unhinged and now have little relationship to each other”. There was also mention of a housing bubble may be brewing, it does feel strange to be in a market that no one has experienced before. There is no road map for this one. As I write this market update (reporting on figures & findings from the month prior) I am already sensing a shift. I will continue to watch closely.
Where do we go from here?
Now is a great time to sell your home as the sellers have the upper hand due to low inventory and strong prices. As we move through 2022, buyers can expect some relief in new financing options. There is talk about the “modern bridge loan”, which would give homeowners the ability to sell their current residence after they’ve found and purchased a new home. This will help buyers to be competitive when making offers and take the stress out of where they are going. I’m starting to see analysts dismissing suggestions of a “bubble”, it is still an ideal time to purchase a home. They are saying they don’t recommend postponing purchasing . If you think you are saving money by waiting, you should run the numbers. Economists and pundits in real estate all say buy now. The anticipated increase in equity across the next two-to-four years will be astonishing.
Northwest MLS Market Report
Here is my Northwest MLS Market Report for the month of April 2022 (all reports and stats are from the prior month of March 2021). Last month there were only .58 months of supply system-wide. Multiple offers have been back with a vengeance as buyers are challenged due to the inventory being down, especially in the median price range. Historically low-interest rates and lifestyle changes are fueling housing activity around Washington state. For the most part, we have seen month-over-month gains in pending sales closed sales, and prices are “very significant” and indicators of a housing market that is “very robust”. Listings are few and buyers are plenty.
We continue to see price appreciation over last year as well as the all too common shortage of inventory. Buyers are wisely taking advantage of record-low interest rates. Potential sellers should act now as this is an EXCELLENT time to put your home on the market. I will continue to follow the market trends and inform you each month as we go through Winter into Spring.
Let’s go get coffee, chat on the phone, or simply email back and forth if you have any questions about selling or buying real estate. If you want to know what your home is worth, have interest in a certain area, or want to simply be put on a search to follow the market and home prices just let me know. My team & I have many tools to help you make good investment decisions!
A look at Snohomish County Housing Statistics
January began with:
- 1,767 New Listings
- .42 months worth of Inventory
- Median home price of $758,707
Let’s break it down per city:
|CITIES||MEDIAN SALES PRICE||% CHANGE OVER LAST YEAR||MONTHS OF INVENTORY|
What Does This Data Mean?
Inventory levels continue to be an issue. Most places currently have less than 1 month’s supply available, we are still very much in a seller-based market, a balanced market is said to be when we have approximately 4-6 months” worth of inventory. Due to the ongoing demand for real estate in the Greater Seattle area, I would expect to see a robust real estate market going through 2021 and into 2022. Prices are continuing to increase in the North Sound Region, especially along the I-5 corridor.
What Does This Mean If You Are Buying A Home in Snohomish County
If you are buying a home in Snohomish County you are going to see a sparse amount of inventory available, you must act quickly, buyers are out there and very serious, driving up prices. Buyers looking for single-family homes and condos are seeing increases in prices, interest rates at historic lows, and holding for the time being. Buyers need their financing in order, pre-approvals available, and please, bring an experienced agent to the table when forming an offer and guiding through negotiations.
This is the perfect time to sign up and receive email notifications when a new home is listed in the Snohomish County real estate market. Email notifications and instant alerts give you an advantage over other buyers looking for homes. Fill out our form below so we can keep you ahead of the competition!
Ask Amy for an Email alert when a Snohomish County Home becomes available.
What Does This Mean If You Are Selling A Home In Snohomish County
If you are selling a home in Snohomish County buyers are eager and shopping. This is still a seller’s market and most sellers are getting their asking price and commonly getting over their list price.
Competition means your home needs to be priced competitively. Double-check to make sure your property is in optimum selling condition.
Check the home valuation calculator to get an estimated value on your home. Contact us to get a comprehensive report. We work closely with sellers to create a marketing strategy that gets your listing in front of buyers wanting to buy.
What’s Your Home Worth?
Instant Online Home Value Report
Month-by-Month Comparison and In-depth Market Reports
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About Amy Wagner – Prime Listings Group
“When You Do What You Love…People Love What You Do”
As a real estate agent, investor and managing broker of Keller Williams North Sound, Amy particularly loves helping people sell their homes fast and teaching and helping people build wealth through real estate investments such as multi-family homes, land development and the fix & flip of houses. She founded Prime Listings Group on the principles of doing better and giving more. We have local experience on our side and we promise to give more than expected. You’ve come to the right place. At PLG you can expect better!
“Great service from the start until closing….”
Amy sold my house quick and for more than I expected. Her whole team was excellent. Great service from the start until closing 10 out of 10⭐️’s!!! Thank you 🙏🏽 Amy Wagner