Market Report- Snohomish County Homes - April 2021
April 2021 Market Report
We are approaching midway into the Spring 2021 selling market! Each year, our market gets an influx of inventory as sellers put their homes on the market, trying to time the improving weather with Summer vacations.
This is one of the most unique markets we have seen, with record low inventory levels, 4-5 buyers for every listing that comes on, and homeowners that have massive amounts of equity in their home.
Let’s jump into the numbers.
The average sales price is now $613,000. This is an increase of 13% year over year and is allowing many sellers that bought in 2017/2018 to upgrade their homes and put a large down payment on the new home. Buyers searching under $500,000 will find very limited options in our current market.
New listings are down 5%, which is about the trend we have been seeing since the COVID lockdown in Spring 2020. We are closely monitoring the inventory to see if sellers that held off in 2020 are now listing and moving forward with their selling plans.
Homes for sale are down 50%, so there are significantly less options to tour as a buyer. It is very rare that the first time we meet with a buyer that there are actually homes on the market that would be a good fit for them. It is more about timing new listings as they come on and being a strongly positioned buyer for when the ideal home hits the market.
The average days on market to sell a home is at 17, and the median is at 6. Almost all new listings have an offer review date on them, so the median of 6 would be closer to a zero or a one without review dates and homes would be selling in a matter of hours. We have seen as many as 30 offers on one home in the last few months because of the record low inventory.
Our months of inventory supply are at 0.7, 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:
You need a solid game plan on how you are going to win a home, and those strategies need to consider your earnest money, your inspection strategy, your financing strength, your ability to cover a low appraisal and many other variables
Your financing really matters. It can be tough to buy using a zero down program currently
Expect to escalate 4-10% above list price
First time home buyers will struggle to get a home in this market unless they have significant cash saved up for low appraisals, escalations etc
If you are shopping below $500,000 expect to have very limited options, for those homes to often not be updated, and for significant competition at this price point
As a seller:
If you have had ANY thoughts about selling, now is your time to do it. As soon as inventory levels start increasing buyers will have more options to tour and that will be competing with your home as a listin (buyers shop by comparison)
Do not over price your home. Pricing it right at the market value, and then letting buyer demand drive it up is the most successful strategy we have been using with our clients. You want to get as many people out to see the home as possible
As a homeowner:
You probably have significant equity in your home
Could be a good time to evaluate if your needs for a home have changed at all
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
We are not expecting the inventory levels to shoot up anytime soon, but we are expecting the seasonal surge of homes to hit the market over the next few months and for buyer demand to continue to outpace available listings by a significant degree.
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