This is the BEST of Times for Sellers!
At month end (Decemeber 2020), there were 4,732 total ACTIVE listings system-wide in the MLS database, which encompasses 25 counties. That’s down 44% from a year ago when the selection included 8,469 listings. Measured by months of inventory, there is now only about two weeks of supply (0.53 months) overall. This all leads to “the BEST of times for sellers” and a very challenging time for buyers.
Sellers can be picky because there are almost always multiple offers. Buyers are being forced to add value to their offers in ways other than price. Some examples are including shorter contingencies, closing date flexibility, higher earnest money deposits, and agreeing upfront to pay the difference if a property’s appraised value is lower than the sale price. It is most definitely a seller’s market and buyers should not depend on a significant increase in inventory or a decrease in prices in the coming months
2021 Activity is Expected to Resemble 2020
I’ve been doing some research and readings of real estate specialists and economists to see what the prediction will be moving forward into 2021. Here are some well respected view point from local experts:
- “Demand driven by the continued growth of the tech and biomedical sectors and our high quality of life with access to vast marine and alpine activities will continue to drive prices up and growth toward the suburbs.” -John Deely
- “So much of what is driving the market is interest rates and I don’t see the Fed raising rates in the foreseeable future. I expect 2021 to be much more like 2020.” -Mike Larson
- “2020 real estate activity ended with a bang, indicating that 2021 will be an explosive year for listings and sales.” -Dean Rebhuhn
- “I expect the first half of 2021 will be very similar to last year: low interest rates combined with low housing inventory resulting in a very active competitive market. Multiple offers and waived contingencies will likely be the norm as we roll into the new year. ” -Jason Wall
- “As we move forward into 2021, I expect continued strong demand from buyers, but unfortunately, the likelihood that there will be any significant increase in inventory is slim. As a result, I believe prices will continue to rise, which is good news for sellers, but raises concerns about affordability. This, combined with modestly rising mortgage rates, could end up taking some steam out of the market but overall, I expect housing to continue being a very bright spot in the Puget Sound economy.” -Economist Matthew Gardner
I have been watching the Snohomish County housing market closely, but, as I predicted last month, there has not been any negative Covid-19 fallout so far. In fact, compared to a year ago the number of homes for sale is down and home prices are still rising. Any additional inventory that may come available in Snohomish County will likely be absorbed swiftly as we continue to see buyers moving from the more expensive King County market to the relative affordability that Snohomish County offers. Supply and Demand continue to drive this market!
Historically low-interest rates
We are also seeing many buyers taking advantage of the historically low-interest rates by purchasing second homes and investment properties. This of course has to do with the employment in major tech industries proving to be very strong.
Moving forward we expect the real estate market to continue to be very robust in 2021!
NWMLS Market Report
Here is my NWMLS Market Report for the month of January 2021 (all reports and stats are from the prior month of December 2021). Last month there was only .53 months supply system-wide. Multiple offers are back with a vengeance as buyers are challenged by the inventory being down more than 40% from a year ago, especially in the median price range. Historically low-interest rates and lifestyle changes are fueling housing activity around Washington state. 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 shortages 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 and 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 Housing Statistics
In Snohomish County December began with:
- 806 New Listings
- .26 months worth of Inventory
- Median home price of $535,000
Let’s break it down per city.
Let’s Take A Look at Bothell, Lynnwood, Everett, Snohomish, Lake Stevens, and Marysville:
Bothell Median sales price is $750,000 up 10.3% from December of last year. The average time on the market is 23 days down -37.8% compared to last year.
Lake Stevens Median sales price is $506,000 up 11.8% from December of last year. The average time on the market is 26 days down -31.6% compared to last year.
Lynnwood Median sales price is $635,000 up 14.2% from December of last year. The average time on the market is 18 days down -40.0% compared to last year.
Everett Median sales price is $552,000 up 12.2% from December of last year. The average time on the market is 19 days down -29.6% compared to last year.
Snohomish Median sales price is $521,858 up 7.6% from December of last year. The average time on the market is 29 days down -29.3% compared to last year.
Marysville Median sales price is $460,000 up 10.8% from December of last year. The average time on the market is 25 days down -21.9% compared to last year.
What Does This Data Mean?
Inventory levels continue to be low most places currently have less than .5 months 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 into 2021. 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.
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!
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.