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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…
As we look at the latest NWMLS report from January, we see that brokers are encouraged by declining mortgage rates with some saying pent-up demand is triggering multiple offers. Pending sales around Washington state reached the highest level since October and surged nearly 44% from December. Last month’s 5,776 mutually accepted offers were down about 9% from a year ago, but brokers seemed encouraged by the “favorable spike”.
Prices on last month’s closed sales edged up slightly, at .41%, compared with twelve months ago. Nine of the 26 counties in the report had year-over-year price bumps.
We are seeing multiple offers once again! It’s not like it was at the peak of the market, but buyers are out there and competing for properties. The selection of properties, based on the number of total active listings in the MLS database, improved significantly from a year ago, rising from 3,092 listings to 8,220 at month’s end. This is down however from December’s selection by 13.2%.
Brokers added 4,925 new listings to the MLS database in January. about 1,000 fewer than the same month a year ago. We are starting to see more than six months of inventory popping up in a few of our reporting counties (Adams, Columbia, Grays Harbor, Okanogan, and San Juan counties). This indicates we are at the upper edge of a balanced market. Our most populated counties- King, Pierce, and Snohomish- are still at one to two months of inventory, which is indicative of a seller’s market.
Overall, we saw a favorable spike of intensity in the market in January, with fewer new resale homes coming onto the market, there’s a shortage/low level of unsold inventory, especially in the more affordable and mid-price ranges where approximately 80% of sales activity takes place. It might be safe to say that the Spring real estate market is here early. A combination of pent-up buyer demand, attractive prices, and low inventory in King, Pierce, and Snohomish counties are driving sales.
Mortgage rates are down about a full point from November when they peaked at just over 7%. Reasonable interest rates and new properties coming to the market daily are factors of this “new normal” market. The recent decline in rates means that for today’s buyer of a median-priced home, the down payment amount is lower than it would have been last summer. As the interest rates have tempered a bit, many buyers are moving forward to purchase with an intent to refinance once rates come down more. Mortgage rates will likely be in the 5.5 to 6.5% range (the new normal). Mortgage rates are the dominant factor driving home sales, and the recent declines in rates are clearly helping to stabilize the market. We are seeing good traffic at our open houses and new, correctly priced listings are receiving multiple offers.
Condominiums noted some challenges, the condo market in our most populated counties is quite a bit different and not recovering as quickly. Condo prices system-wide were down 2.5% from a year ago. Pending condo sales are down about 24% fewer than the same month a year ago.
Snohomish County reported 719 new listings, 875 active listings, 886 pending sales, and 513 closed sales. 1.71 months of inventory and a median price of $645,000. This means there is just over a month and a half worth of inventory in Snohomish County. As interest rates change we will keep a close eye on these numbers, for now, you can still expect strong offers, traditional contingencies added to the contract, and some waived contingencies at the median price point and in desired locations. Homes may sit on the market a little longer than in the prior months of the housing frenzy. Sellers need to price competitively to get their homes sold. Sellers that are not pricing their homes accurately, will result in their home sitting.
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 February 2023 (all reports and stats are from the prior month of January 2023). Last month there were 2.52 months of supply system-wide. Interest rates are still a concern for buyers, 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 frenzied market we have experienced the last few years.
We continue to see price appreciation over last year. Potential sellers should act now as this is still a good 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.
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!
A look at Snohomish County Housing Statistics
February began with:
- 719 New Listings
- 1.71 months’ worth of Inventory
- Median home price of $645,000
Let’s break it down per city:
| CITIES | MEDIAN SALES PRICE | % CHANGE OVER LAST YEAR | MONTHS OF INVENTORY |
| BOTHEL | $930,000 | 6.29%% | 1.52 |
| LYNNWOOD | $722,500 | -11.57% | 1.55 |
| EVERETT | $621,000 | -4.46% | 1.62 |
| SNOHOMISH | $610,000 | -2.01% | 2.74 |
| LAKE STEVENS | $635,000 | -6.07% | 1.51 |
| MARYSVILLE | $520,000 | -12.82% | 1.92 |
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 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 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 increases in prices, 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 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 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
