July 2021 Snohomish County Market Report
July 2021 Market Report
Welcome to the middle of Summer in the PNW!
Just like last month, there are a lot of dynamics going on in the market at the moment, and I will share with you some data points that will help bring shape and context into what is happening right here in our local market. At the end I will share with you what this all means as a buyer, seller or homeowner.
The average sales price is now $660,000. This is an increase of 20% year over year which represents the highest year over year increases we have seen. The current prices are making home affordability a challenge for many first time home buyers.
New listings are UP 12.8%, which is nice to see. More people are listing their homes that originally planned to list in 2020 but that held off because of the global pandemic.
Homes for sale are down 54%. So while it is helpful that new listings are up, they are selling faster than ever which is pulling the number of homes that are active for sale to less than half of what it was one year ago. This means much more competition on each home.
The average days on market to sell a home is at 14, and the median is at 5. We effectively have zero inventory under $800,000 in Snohomish County, as many listings have offer review dates on them. Without offer review dates, the median would likely be measured in hours and not days.
Our months of inventory supply are at 0.6, meaning if no other homes came on the market today, we would sell out of homes in just over ¾ of a month's time. Most major economists agree that a 6 month inventory supply of homes represents a neutral or balanced market, that is neither in favor of the buyer or seller. It could take years to get back to this level.
So what does this all mean?
As a buyer:
The market is still extremely competitive, however while we were seeing 20+ offers on nearly every listing three months ago, we are now seeing more like 2-5 offers
Homes are still escalating 3-9% above list price and sometimes more depending on the area. Be sure to shop well below your max purchase price to allow yourself room to be competitive
Your strategy matters and taking the time to develop a solid game plan to purchase a home in this market is more important than ever. Buying a home is a huge financial decision and you need to take the responsibility of investing time upfront before you start house hunting to understand exactly what is going on in our market and what the current process looks like
As a seller:
If you overprice your home it will still sit. We have seen this mistake made by a lot of sellers recently that are overly optimistic about how much their home could sell for. This is why we are seeing more price reductions than before
Your presentation to the market matters. Just about anyone can sell a home in this market, but not just anyone can sell a home and net the absolute most amount of money. Your decluttering, cleaning, staging, and marketing are massively important to netting the most amount of money as a seller
As a homeowner:
Look at a possible refinance if you have an FHA mortgage and have owned the home for a few years. You might be able to drop the mortgage insurance with the equity you now have.
Think about whether your current home fits your 3-5 year plan. If it does not, then now is the best time to address that while the inventory level is so low.
Keep tabs on your neighborhood as homes are selling and see what they sold for. You can always email me at mike@novakteam.com if you are curious about what a home in your neighborhood sold for
Prices are unlikely to drop or even flatten anytime soon. The pace of new construction will need to increase dramatically to fulfill the demand that we have from buyers in our current market.
As always, if I can help you in anyway, please reach out to me direct. I personally respond to all of my emails, and would enjoy connecting with you on your real estate questions.
Mike Novak
(360)-393-0396
mike@novakteam.com