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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…
In December 2022, the MLS report showed continued growth in the number of active listings compared to the same month a year ago, but sharp drops in the number of pending and closed sales. Last month’s prices for single-family homes and condominiums that sold across the 26 counties in the report dropped 0.51% from twelve months ago, marking the first year-over-year price decline since March 2012.
Last year was the tale of two housing markets! In the first half of the year, we had low-interest rates, rising prices, and little inventory. The second half of the year brought increasing interest rates, some lowering of prices, and increasing inventory.
In a span of 6 months, we went from 3% interest rates to 7%, and from two weeks of inventory to two months of inventory. The market has slowed due to rising interest rates and economic news, yet we haven’t tipped to a buyers market quite yet, which is reflected by 4-to-6 months of inventory.
December 2022 prices were modestly lower than December 2021, this, however, does not tell the whole story as the median home sale price for all of 2022 was significantly higher than 2021. (Northwest MLS figures show the median price overall increased by $50,000, or nearly 8.9%.
Year-over-year prices for last month’s sales of single-family homes and condos (combined) declined in 17 counties and rose in nine counties. The median sales price was $570,000, down $2,900 (0.51%) from the year-ago figure of $572,900. Last year’s median price overall peaked in May 2022, at $660,000.
Brokers added 2,980 new listings to inventory last month. That total was 1,637 fewer than the number added during December 2021 (4,617). Sellers accepted 4,017 offers from buyers, down about 31% from the year-ago volume of pending sales (5,850). At month end, buyers could choose from 9,475 active listings, nearly three times as many as a year ago when 3,240 homes and condos were offered for sale area-wide. Overall the housing market is going to continue falling off the artificial ‘sugar high’ that was a function of the artificially low mortgage rates during the pandemic.
I expect prices will continue to decline through the first half of 2023 but said “with mortgage rates expected to slowly fall from current levels, sale prices should start increasing again in the second half of the year. Ultimately, once prices pull back to where they would have been if the pandemic had never occurred, they will start to stabilize and then return to a more normalized pace of appreciation.
Finding the proper price will be important for sellers in 2023, while buyers can look forward to increasing inventory. The 2023 market will be better than most believe. Rates are trending down and should trickle down, even more, this year, giving buyers more purchasing power. Increased competition among sellers has been good for buyers, contributing to a more balanced market. As we enter the first of the year, the market is experiencing a shortage of homes for sale in the more affordable and mid-price ranges. With the Winter cleanup of unsold inventory complete, and with a low level of new listings coming on the market in January and February, the availability of homes for sale will be at a low point. Heading into Spring we anticipate a strong intensity of new listings going under contract within the first 30 days. The intensity should settle down pre-Summer.
Snohomish County reported 408 new listings, 1,068 active listings, 615 pending sales, and 703 closed sales. 1.52 months of inventory and a median price of $679,000. This means there is just about 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 January 2023 (all reports and stats are from the prior month of December 2022). Last month there were 2.09 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
January began with:
- 408 New Listings
- 1.52 months’ worth of Inventory
- Median home price of $679,000
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 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 into 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!
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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.
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