Real estate activity remains strong heading into December 2020
November was one of our busiest months for sales and closings in years!
The rush is on for housing! Real estate activity typically chills as temperatures drop but this year buyer demand remains high. Strong demand is present in the more affordable mid-price ranges and extends into high-end homes. Last month the MLS report summarized activity with strong Y-O-Y (year over year) increases in closed sales (up nearly 23%) and prices (up 13.8%). Inventory continues to be depleted with the number of total listings down 43%. Activity remains higher than usual this time of year, this isn’t too surprising given the fact that the spring selling season was essentially canceled due to the COVID-19 pandemic.
Historically Low-Interest Rates
Rates on a 30-year fixed-rate mortgage fell to their lowest level, at 2.71%, for the 14th time this year, according to Freddie Mac. The record-low interest rates are allowing people to bid up prices. 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.
There have been some interesting shifts to the condo market in King County. While single family home listings remain painfully low, condo listings are 39% higher (YOY). Some say the increase of condo inventory is COVID-19 induced as people are wanting to sell their condos and move into homes with more outdoor space. “System wide” condo listings are up more than 7% from a year ago. Closed sales jumped nearly 43% overall and condo prices increased more than 11%. Seattle has about 61% more condo listings than a year ago., the Eastside selection is up 36%. For many first time buyers, a condominium is the path to homeownership.
What is a “Zoom Town”?
The rise of virtual platforms like Zoom has prompted knowledge workers to flock to new frontiers known as “Zoom Towns” -scenic destinations where they can live more cheaply and “achieve a work/life balance. Recently noted the San Juan Islands and Methow Valley have been named “Zoom Town” locations. San Juan County closed sales are up 48% while Methow Valley sales are up more than 17% (Y-T-D). People are seeking space and value since they feel working from home may be a feature of their lives in the future.
Moving forward we expect the real estate market to continue to be very robust going into 2021!
NWMLS Market Report
Here is my NWMLS Market Report for the month of December 2020 (all reports and stats are from the prior month of November). Last month there was only .73 months supply system-wide. Multiple offers are back with a vengeance as buyers are challenged by the inventory being down 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 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 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 or simply want to be put on a search to follow the market and home prices in your area just let me know. My team & I have many tools to help you make good investment decisions!
A look at Housing Statistics
November began with a total of Brokers adding 1,147 new listings to inventory during the month in Snohomish County
Currently, we have .80 months’ worth of inventory in Snohomish County & the median home price is $566,000. 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 $800,000 up 24% from November of last year. The average time on the market is 19 days down -53.7% compared to last year.
Lake Stevens- Median sales price is $515,000 up 16% from November of last year. The average time on the market is 25 days down -21.9% compared to last year.
Lynnwood- Median sales price is $640.000 up 14.3% from November of last year. The average time on the market is 13 days down -60.6% compared to last year.
Everett -Median sales price is $577,000 up 17.3% from November of last year. The average time on the market is 16 days down -51.5% compared to last year.
Snohomish- Median sales price is $532,500 up 3.6% from November of last year. The average time on the market is 18 days down -59.1% compared to last year.
Marysville- median sales price is $455,000 up 7.1% from November of last year. The average time on the market is 21 days down -41.7% 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 are 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.
-Amy Wagner 425.239.2723