Home Buyers Should Consider Condominiums as an Option.
Homebuyers that have been precluded from entering Puget Sound’s competitive market may want to consider condominiums as an option, according to the industry experts after reviewing last month’s data.
With the trend toward telecommuting and moving to outlying suburban areas, the Seattle/King County condominium market presents a new option. Condo supply is at 1.67 months of inventory versus 0.69 months for single-family homes. Condos can be a bright spot for buyers. They are more reasonably priced and there are more months of inventory than with single-family homes. With the extremely low-interest rates, buyers should definitely consider condos as an ownership opportunity and a way to build equity – especially if they are currently renting.
Of 4,432 active listings in the NWMLS system-wide at the end of January, about one of every four offerings (1,051 units, or around 23.7%) was a condo, with the remaining being single-family homes. 76% of the available condo inventory is located in King County, with a median asking price of $525,495. The median price of SOLD condominiums last month was $399,975. The median price of a single-family home last month was $150,000 more than condos. Opportunities are out there in this area of the market place.
Buyers are asking “Am I paying too much?”
If interest rates weren’t at a historical low, buyers would be unable to afford the escalating cost of housing. Many analysts are feeling nervous about where the market is heading. Help is not on the way, sellers overall, remain sparse. Although new listings coming to the market have kept pace or even exceeded last year’s totals in some areas, new listings are immediately devoured by a plethora of waiting buyers. The situation has buyers asking, “Am I paying too much?” and sellers asking “Can we ask for more?” That answer for both is “YES”.
To compete in today’s ultra-competitive market, we’re seeing home buyers front-load their offer above list price, this is done to stop the action and push sellers to accept their offer before a set review date. We are seeing “multiple offers on everything this winter”. It is common to have up to 40 showings on a single listing. This low inventory (down 43% overall) suggests continued price growth into the Spring as demand remains high and interest rates remain low.
NWMLS Market Report
Here is my NWMLS Market Report for the month of February 2021 (all reports and stats are from the prior month of January 2021). Last month there was only .75 months supply system-wide. Multiple offers are back with a vengeance as buyers are challenged due to the inventory being down more than 43% 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 January began with:
- 1,018 New Listings
- .41 months worth of Inventory
- Median home price of $554,990
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 $809,400 up 16.9% from January of last year. The average time on the market is 16 days down -76.1% compared to last year.
Lake Stevens Median sales price is $550,000 up 18.6% from January of last year. The average time on the market is 31 days down -24.4% compared to last year.
Lynnwood Median sales price is $705,000 up 22.6% from January of last year. The average time on the market is 12 days down -71.4% compared to last year.
Everett Median sales price is $582,500 up 17% from January of last year. The average time on the market is 15 days down -57.1% compared to last year.
Snohomish Median sales price is $533,000 up 0.6% from January of last year. The average time on the market is 44 days down -25.4% compared to last year.
Marysville Median sales price is $504,025 up 20% from January of last year. The average time on the market is 20 days down -50% compared to last year.
What Does This Data Mean?
Inventory levels continue to be low most places currently have less than 1 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.
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