March 2022 Market Report
What’s going on in Snohomish County:
Massive year over year appreciation of 23%
How the fed raising rates may effect our market
The impacts of a low inventory to you as a buyer
How to know if we are in a bubble or no
Watch the video to get the full breakdown
We’re back again with another real estate market report for Snohomish County, and we are in for a ride this month! 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 at 23%. This increases the average sales price for a single family home in Snohomish County to $749,000. This is a 38% increase in just two years. Affordability is becoming a big challenge for many buyers in the market.
Slightly up from last month, New Listings are up 7.5% year over year, meaning there is slightly more inventory coming onto the market this month. While there are more homes coming on the market than there were a year ago, they are still selling super fast because there is still a huge buyer back log. Total Number of Homes for Sale is down to 498 which is a decrease of 33% year over year.
Days on the Market are at 5 days, no change from the last two months. To be honest, those five days are merely for the offer review time. If we had no offer review dates we would probably have homes selling in one day with so much interest and offers being put on each house that goes on the market.
Months of Inventory Supply, which helps understand how long it would take to sell every home on the market, is at about 0.5 months of inventory. This is a 37% decrease year over year. 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 is 106.4% meaning on average homes are selling for 6.4% above the original list price. I have seen homes sell for as much as 25% more than what they are listed for in the last couple of months.
What does this mean for buyers, sellers, and homeowners?
As a buyer, you need to be ready to fight for the home that you want to buy. You should expect that there will be at least 10 to 15 offers on the same property, and only one of those people will get their offer accepted. So you have to go into this process with the right mindset. More than likely you will miss out on the first three to four homes you put an offer on, but you have to keep going. Knowing that up front will help you keep moving forward to find the right house. Right now this market rewards persistence, and although it can be mentally draining to loose out on homes that seemed perfect at the time, staying persistent and patient in your push to find your next home will pay off.
Secondly for buyers, interest rates are rising rapidly. They are up about a point since this same time last year. We are expecting rates to climb up into the fives within the next 12 months. You can see inflation happening everywhere and the Fed has stated that they will keep raising rates to help curb inflation.
Thirdly, buyers need to have a strong game plan for how they expect to get a home. You cannot just go out and start looking at properties these days, that is not a strategy to buy a home. Having a strong strategy that you build with your agent is going to be the difference between getting a home and not getting one. In this current market I am telling all of my clients that they should start their home buying process six months before they want to be in the home to allow for ample time.
As a seller, you are in the driver's seat. You probably have a ton of equity in your home right now, even if you bought in the last few years, you could sell right now and make a ton of money. The big question for you, is where do you go next? There are a couple of strategies you can use to sell and buy simultaneously, check out my video where I break down the best way to do this.
As a homeowner who is just interested in the market, you can just sit back and watch your appreciation rise. I highly recommend staying put in your rapidly appreciating home if you don’t need to change your housing situation right now. I do not believe that prices will flatten this year, most likely not even for the next two years. So staying put is a great strategy if you are happy in your home.
Are you ready to take the next steps toward buying or selling your home?
When you work with The Novak Team, you are putting to work the vast experience of some of the top agents in the industry, not just the area. Tap the link below to schedule a zero commitment consultation with me to see if it would be a good fit.