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Click here for a current- at a glance look at the Snohomish County Real Estate Housing Forecast… continue reading for our expanded report…
A downturn in the housing market was inevitable given higher mortgage rates, but we are seeing positives for both buyers and sellers.
The Northwest MLS statistics summarizing July activity for 26 counties in the report showed declines in listings, pending sales, closed sales, and prices when compared to 12 months ago.
Buyers could choose from 10,982 active listings at the end of July, a gain of 375 properties compared to Jun’s total. Last month’s inventory dropped 28.6% from a year-ago selection of 15,381 properties. Of the selection, 8,205 listings were added system-wide during July. The number of homes for sale has dropped precipitously year-over-year in Western Washington, right now, new construction can’t meet demand.
Listings in the tri-county area were lower last month (at 5,509 total active listings in King, Pierce, and Snohomish counties) than any July on record with the exception of 2021 during the pandemic when there were 4,690 listings.
A slower pace of sales contributed to a modest uptick in months of supply, rising from 1.55 months in June to 1.76 months in July: a year ago there was 2.01 months of supply. Still, with the industry using 4-to-6 months as the indicator of a balanced market, 20 of the 26 counties fell below that mark.
The overall velocity is slow in all categories as competition for new homes listed is high. Sellers continue to sit on the sidelines, and demand from buyers has cooled due mostly to rising interest rates.
Last week’s rate on a 30-year fixed-rate mortgage was 6.9%, according to Freddie Mac. A year ago, it was 4.99%, and two years ago it was 2.77%. The jump in mortgage rates combined with a lack of choices for buyers has put a drag on sales. Adding to buyers’ hesitancy is the record-breaking price growth in 2021 and 2022. Cost pressures are impacting affordability, and it is unlikely to significantly improve in the near future.
Let’s take a look at some other counties for a minute. Chelan and Douglas counties have led to a situation where entry-level home prices have risen beyond the means of many potential buyers. Adding to the challenge of rising interest rates, which has made it difficult for first-time buyers and relocation buyers to qualify for a median-priced home ($614,500 to $555,000). There is a silver lining, In chelan county the median sales price declined 9.68% from a year ago. System-wide, the median price dropped 1.6% from a year ago ($625,000 to $615,000).
Douglas County was one of the eight counties in the MLS report where prices rose from a year ago.
Okanogan and Grant counties are witnessing a sustained demand for their lower-priced properties. Some buyers who were initially looking in Chelan and Douglas counties have expanded their search area to find more affordable homes in these regions.
Overall, despite low inventory and rising rates, sales are very active in select areas! Make sure your buyers are fully vetted and qualified when submitting an offer in today’s competitive market.
Mortgage rates are unlikely to move tangibly lower during the balance of summer, I don’t expect the market to move much over the coming months, both in terms of sales and prices. If the economy starts to soften this fall, rates could start to fall and this could revitalize the market! Experts are expecting better markets ahead (2024-2025). They anticipate inventory loosening up with more resale and new construction homes becoming available. They also predict lower interest rates, although they do not foresee lower prices.
Where do we go from here?
Now is still a great time to sell your home as home values are holding strong and we do have pent-up buyer demand, the overpriced have tapered off, so sellers need to be reasonable in this more balanced market. Buyers now have increased inventory, giving them options. Buyers have more homes to choose from and we are seeing contingencies and finance options return. Although we are seeing some price adjustments I don’t recommend postponing purchasing, home values are expected to continue to rise in our area. 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 August 2023 (all reports and stats are from the prior month of July 2023). Last month there were 1.76 months of supply system-wide. Interest rates are still a concern for buyers, but creative financing has returned. For the most part, we are getting back to the “Pre-COVID” real estate market which was considered very strong just not like the fierce market we have experienced the last few years.
We continue to see price appreciation from January in most areas. Potential sellers should act now as this is still 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 summer.
Let’s get coffee, chat, or 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 an interest in a particular 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!
Take a look at Snohomish County Housing Statistics
May began with:
- 1,080 New Listings
- 1.07 months’ worth of Inventory
- Median home price of $717,691
Let’s break it down per city:
| CITIES | MEDIAN SALES PRICE | % CHANGE OVER LAST YEAR | MONTHS OF INVENTORY |
| BOTHEL | $1,119,000 | 6.57% | 1.06 |
| LYNNWOOD | $790,000 | 0.64% | 0.79 |
| EVERETT | $690,000 | -4.17% | 1.11 |
| SNOHOMISH | $616,000 | -3.75% | 1.02 |
| LAKE STEVENS | $651,500 | -6.93% | 1.55 |
| MARYSVILLE | $634,950 | 0.79% | 1.15 |
What Does This Data Mean?
Inventory levels continue to be an issue in some places. Most places currently have under a 2-month supply available, we are still very much in a seller-based market, however, we are moving to a balanced market. A balanced market is considered 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 slow to robust real estate market going through 2023. Short term we will see prices soften but in the next few years I believe prices will continue 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 more inventory available, you don’t have to act as quickly, buyers are out there and very serious, driving up prices in some cases. Sellers are accepting contingencies again. Buyers looking for single-family homes and condos are seeing price increases, interest rates are unknown, and we are still in the 10% of low rates if you look back 50 years. Buyers need their financing in order, pre-approvals are 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
Buyers are eager and shopping if you are selling a home in Snohomish County. 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 of 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.
-Amy Wagner
425.239.2723
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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
