Market Report- Snohomish County Homes - May 2021
May 2021 Market Report
We are closing in on Summer time here in the Pacific Northwest, with kids getting out of school and Summer vacations kicking off in short order.
The market dynamics have a lot going onto them right now, and I am going to break down for you exactly what this means, and where we see things going in the Summer and Fall.
The average sales price is now $627,911. This is an increase of 14.8% year over year which represents one of the highest year over year increases we have seen. The current pace of price increases are making it very hard for first time buyers to enter the market with a payment of nearly $3600/mo for an FHA loan for our average purchase price.
New listings are UP 2.4%, which is refreshing to see. This number had been trending down for sometime now, but we are seeing more homes come on the market as we work through the Spring selling season.
Homes for sale are down 52%. 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 16, 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 0.7, 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:
Get ready to really compete on any homes that are under $1M
Know your strategies on inspections, appraisal coverage, earnest money, offer contingencies etc all
Be ready to step outside your comfort zone on offers including things like non refundable earnest money, waived inspections, waiving appraisal language etc
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)
In most cases it makes sense to list with an offer review date
Know where you are going- being a contingent buyer when you need to sell is nearly impossible right now so focus on getting your home under contract and then going to shop for the new one. Negotiate a rent back if possible to give you more time to find the right home.
As a homeowner:
You likely have MASSIVE 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
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