December 2022 Market Report
What’s going on in Snohomish County:
Number of homes on market has skyrocketed.
Interest rates have peaked and are dropping back down.
Now is the time to buy if the time is right for you.
Watch the video to get the full breakdown
Market Report for Snohomish County Real Estate
Welcome to the monthly market report for Snohomish County real estate. I'm Mike Novak from the Novak Real Estate Team, part of a local brokerage. In this report, I will provide you with hyper-local information that you need to know as a buyer, seller, or even as a curious homeowner. I'll share the latest data and discuss what it means for buyers and sellers, along with some strategies we're using with our clients. Let's dive into the data.
Sales Price: The average sales price in Snohomish County is currently $772,000, which is up approximately 3% from the same time last year. It's important to note that prices have not dropped. Despite rumors of decreasing prices, the data shows that prices have remained steady. While it's uncertain whether prices will drop in the future, it's essential to base your understanding on factual data.
New Listings: There has been a 23% decrease in new listings compared to the previous year. Fewer homeowners are putting their homes on the market, possibly waiting for the spring selling season. We can expect a surge in listings in February, March, and April next year, resulting in increased inventory.
Homes for Sale: Currently, there are 260% more homes for sale compared to the same period last year. This means there are more options for buyers but also more competition for sellers. Buyers now have the opportunity to explore multiple homes, so sellers should consider pricing their homes strategically to stand out in a competitive market.
Days on Market: The average time it takes to sell a home in Snohomish County is 34 days, which is an increase of 142% compared to the previous year. While 34 days is still relatively fast, it's important to manage expectations. Homes are no longer selling within a day or two, as they did in the past. Sellers should be prepared for a slightly longer selling process.
Months of Inventory Supply: Currently, there is 1.5 months of inventory supply, which is a 400% increase compared to the previous year. However, it's crucial to interpret this benchmark with caution. One year ago, the inventory was almost non-existent, so the increase to 1.5 months is still relatively low. A six-month inventory supply is generally considered a neutral or balanced market.
Sale Price to List Price Ratio: The sale price to list price ratio is currently 98.3%, down from 104% last year. This means buyers no longer need to pay significantly above the list price to secure a home. The market has shifted, and buyers now have more negotiating power.
Market Outlook:
I believe that mortgage rates have likely peaked, with rates hovering around 6.5% to 6.75%. This presents a favorable buying opportunity, especially if rates drop further. If rates dip into the high fives, we can expect a flood of buyers re-entering the market, which could lead to increased competition and potential price escalations.
For Buyers:
Now is a great time for buyers to consider making a move. Compared to one year ago, buyers no longer have to pay well above the list price, and they can take their time to make informed decisions. Inspection and appraisal contingencies are more common, and earnest money requirements have decreased. With more inventory available, buyers have a greater selection of homes to choose from.
For Sellers:
Sellers should understand that buyers are taking longer to make decisions. Rushing buyers to make quick decisions is unlikely to be effective in the current market. Sellers may experience less competition by listing their homes now rather than waiting for the spring market when a surge of listings is expected. Prices are still increasing, albeit at a more normal rate, providing sellers with opportunities.
In conclusion, the Snohomish County real estate market is not experiencing a crash. Prices have remained steady, and there is more inventory available compared to the previous year. Buyers have more options and negotiating power, while sellers may find less competition by listing their homes now. It's important to stay informed and consult with a real estate professional to make the best decisions based on your unique circumstances. If you have any questions or need assistance, feel free to reach out to me. Happy holidays and have a great Christmas!
Thinking about buying or selling? Schedule a free no obligation call directly with Mike.
We’re back again with another real estate market report for Snohomish County!
So, let’s talk about some of the key data points we’re seeing right now.
We’ll talk about how buyers and sellers can be prepared in this hyper competitive market, and finally we’ll provide some insight for the rest of 2022 and what our expectations are for the Snohomish real estate market.
The Highlights
Starting with Sales Price, we are still seeing an increase in the average sales price year over year at3%. This increases the average sales price for a single family home in Snohomish County to $772,000. As you probably noticed, this number has slowed down in growth over the last eight months or so.
Total Number of Homes for Sale is down 260% year over year, lots more options for buyers.
Days on the Market are at 34 days on average. An increase of 142% year over year. A normal market is around 60-90 so we still have a long ways to go. However, this is still a big difference from where we were at the beginning of the year when a home would be on the market for a day or two.
Months of Inventory Supply, which helps understand how long it would take to sell every home on the market, is at about 1.5 months of inventory, an increase of 400% year over year. So inventory is up, but, a 6 month inventory of homes is what most economists see as a balanced market. With low inventory and high demand, this quick cycling market in Snohomish County is making it extremely difficult for buyers.
List Price to Sale Price Ratio has dropped to 98.3% meaning on average homes are selling for 1.7% below the original list price. This is a big decrease from this time last year when it was around 104%.
What does this mean for buyers, sellers, and homeowners?
I believe that rates have started to peak around 8%. I am finding that clients are getting mortgage rates down around 6-6.5% now which is a great place to be.
If rates drop into the 5% range, there will likely be a flood of buyers that are now able to re-enter the market. A lot of buyers hit the pause button to wait and see what happens with interest rates. But many of them will press play again when rates drop below 6%.
As a buyer, it makes a lot of sense for you to buy now if the time is right for you. Competition is way down resulting in paying at or below list price as well as many other contingencies you wouldn’t have even considered this time last year.
As a seller, selling a home is taking longer in general. Buyers are taking their time in this current marker and as a seller it is just something that you need to get on board with.
We are not in a market crash, prices are still up 3%, so keep your expectations in check when offers start to come in.
Are you ready to take the next steps toward buying or selling your home?
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Transcribed Video
Merry Christmas and Happy Holidays. Today, I am bringing you our December market report for right here, Snohomish County real estate.It's Mike Novak from the Novak real estate team, part of real brokerage and like I do every month, this month, I'm going to share with you the data that is happening right here.
Hyper local information that you need to know as a buyer, a seller or even just as a simple curious home owner at the end of sharing the data, I'm going to share with you what this means to you if you're a buyer or a seller right now and how it could affect what you do.So and also some of the strategies we're using with our clients. Let's jump right into the data. Sales price $772,000. This is up right around 3% from the same time last year. So prices still have not dropped.
I want to say that again, prices still have dropped year over year. So make sure that when you've got people telling you that prices are actually going down and decreasing, they got to look at the data because most people aren't actually looking at the facts, prices haven't dropped.
Are they going to drop? I don't know, but they haven't yet. Ok. New listings down 23% less people are putting their home on the market.They're just deciding, hey, maybe now isn't the right time or what I could guess is likely happening is they're all waiting for the spring selling market. So they're going to list their home in February, March, April next year. You'll see a whole bunch of inventory.
Come on the market all at the same time. Homes for sale, there's 260% more homes for sale right now. More than there was at the same time of year ago. Lots more options for you as a buyer as a seller. That means lots more competition.Someone's gonna look at multiple homes and not just that one home that you've got listed. So keep that in mind when you're pricing your home, are you pricing it to sell your house or to help the other homes get sold?
That's the question I wanna ask you day on market. How long does it take to sell a home once you list it to getting an offer accepted? We're 34 days per market.So we're officially passed one month, which again is still historically lightning fast if you price the home right? Selling in a month is awesome, but this is still an increase of about 142% year over year. So just make sure you're managing expectations.
It's not likely your home is going to sell in a day or two like it did the same time last year, expect 30 35 days if you've priced it right. And you have good marketing. Ok. Months of inventory supply. This is always my favorite benchmark to look at.We're at 1.5 months of inventory right now, an increase of 400%. But if you look back one year ago, we had nothing for sale. There was basically zero inventory. So that is um it's a benchmark you want to take with a grain of salt. Ok.
So 1.5 months is still super low. Historically speaking, remember I say this every month, a six month inventory supply of homes is what most people consider a neutral or balanced market. So we don't have that yet, even though buyers feel like they've got some negotiating power right now.
List price to sale price ratio is at 98.3%. This was about 100 and 4% the same time last year. So the good news, you don't have to pay 4% more than the list price to win a home right now. Ok.So here's kind of my general thoughts on the market, like I said, last month, I think rates have probably peaked. Um They went all the way up close to 8%.
I think the highest one that I saw on my, one of my clients was 7.8% and they're now down in the 6.5 to 6 and three quarters, which is a great place to be. I mean, that makes a lot, a lot of sense to buy.Um, especially if you use a 21 buy down if rates drop into the fives, I want you to be thinking there's likely going to be a flood of buyers re enter the market.
A lot of buyers that just hit the pause button and said, hey, I'm going to wait and see what happens here. Those buyers will re enter all at once if rates drop into even the high fives and that's going to create a lot of competition for houses.Um And if it's, if you're a buyer, it's something I definitely want you thinking about. Um All right. So if you're a buyer, what does this all mean for you? Um It makes a lot of sense to consider buying right now.
If now is the right time for you to make a move. If we look at a one year ago today, I want to contrast this for you. One year ago, you would have to go 20,000 to $100,000 over a list price to possibly one home.You would typically write 34, even five offers before you would get one accepted. You would have to waive your inspection contingency in most cases or do a pre inspection, you'd have to waive your appraisal contingency. In most cases.
Sometimes you even have to waive your finance contingency or put non refundable earnest money in. And then of course, you just got these massive escalations going on.So if you contrast that to now guess what, you don't have to pay a real list price, you can probably get the seller to pay some of your closing costs. You can take your time to make sure it's the right home for you.
You don't have to make a decision in a few hours. You have got a couple of days before you decide. Hey, that's the home I actually want to put under contract, which is really great for you.It takes a lot of pressure off of you as a buyer, you can inspect the house, you can use your appraisal contingency in most cases.
Um and you can do way less earnest money like 5% was kind of the normal year ago and now you can get away with one or 2%. So that all makes now a better time to buy than the same time one year ago.And like I said to be in the video, there's a lot more houses for sale, there's a lot more options, um which is great if you are a buyer.
So if you're a buyer now is the time to really think this could be your opportunity and it's kind of a limited time opportunity because like I said, if rates drop next year, which we think they will, you will see many more buyers re enter the market that were paused.You see this backlog just kind of all hit the market at once of buyers and it's going to create a lot of competition. I could see escalations happening again if that occurs.
And so just keep that in mind as you think about your timing, as a buyer for sellers, um you know, buyers are taking longer to make decisions and like I said, um you know, just a few months ago, they're going to use an inspection contingency.You can expect that appraisal contingency, all those types of normal things that you see when buying a house, they're not going to waive everything like they used to do. Um But a lot of sellers they want buyers to make decisions real fast after they see the house.
That's just not happening right now. Like buyers want to take time to make sure it's the right house for them.For many people, buying a home is the largest financial transaction of their life and they want to take the time to make sure they feel like it's going to be the right house. So you cannot rush them when it comes to that. If you were the seller.
I understand it's frustrating. I understand it's a big reset from a year and a half or two years ago when people were just racing to throw offers on the houses. But that's the reality of the market right now.So we are not in a market crash guys, again, prices are still up 3% year over year. That is historically pretty dang average. You should not be expecting homes to go up 10, 15 or 20% per year. That is not normal. So 34% that is very normal.
When you look at history, typically, home prices kind of go like this. And recently they've been going a lot like that. So that had to slow down at some point. And that's what you're seeing right now.So a lot of opportunity if you're a buyer, if you're a seller and the timing is right. If you put your home on the market, I think you're gonna have a lot less competition now than you're going to have in the spring.
You can expect a lot of houses to come on between February and April of next year.If you've got questions about this video, what it means to buy or sell right now, or you just want to chat with me, I will put my number up on the phone, you can up on the screen, you can text me, call me.
I will respond to you myself. It's Mike Nova from the Nova team happy holidays and have a great Christmas.