June 2021 Snohomish County Market Report
June 2021 Market Report
Bring on the heat and Summer!
We are starting to see the EARLIEST signs of a shifting market, however we are watching the data closely to see if this is a real possible shift occuring or if it is just a short term effect that is happening.
Buyers are experiencing severe buyer fatigue, missing out on multiple offers, so some buyers are dropping out of the home search, or hitting the “pause” button for a few months while they enjoy their Summer.
For the first time in months, we have actually seen some homes that have offer review dates, pass the review period and not receive any offers. With that said, there are still other homes that are in highly desirable areas or that hit a wide buyer demographic that are getting 10+ offers still.
Many homes are still escalating 3-9%, including new construction. Let’s jump into the data!
The average sales price is now $647,000. This is an increase of 17% 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 $3900/mo for an FHA loan for our average purchase price.
New listings are UP 7.7%, 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 get into the Summer selling season.
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 15, and most homes are selling within their 4-7 day offer review period. 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:
Strategy matters now more than ever. You HAVE to have a game plan and a strategy to buy a home in this market. Simply running around touring homes without taking the time to do this planning with your agent is the best way to not get a home in this market. Slow down to speed up.
You need a game plan for low appraisal coverage, earnest money, rent backs, inspections and a multitude of other variables that will determine if your offer gets accepted
Be ready to offer 5-7 times before you get an offer accepted. This can be shortened if you listen to your agents offer guidance, get aggressive on touring homes, and are a financially strong buyer.
As a seller:
NOW is the time to go, do not wait for more homes to come on the market! If there is a real shift occuring you will be competing with many other sellers as buyers shop by comparision.
Some homes are missing their review dates as the home was overpriced
Marketing strategy and presentation to the market still matter. Your home needs to be decluttered, staged, have professional photography done, and be marketed to the buyer demographic that could be interested in your home. Simply throwing the home on the MLS is NOT a marketing strategy!
As a homeowner:
Enjoy watching your equity climb over 17% year over year!
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