November 2022 Market Report
What’s going on in Snohomish County:
Buyers are cautious and taking their time.
Fed expects 2023 rates to stay high.
Number of homes on the market is still growing.
Watch the video to get the full breakdown
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We’re back again with another real estate market report for Snohomish County!
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 4.6%. This increases the average sales price for a single family home in Snohomish County to $786,000. As you probably noticed, this number has slowed down in growth over the last eight months or so.
Total Number of Homes for Sale is up 172% year over year, this is a massive increase from where we have been.
Days on the Market are at 31 days on average. An increase of 138% year over year. A normal market is around 60-90 so we still have a long ways to go. However, this is still a big difference from where we were at the beginning of the year when a home would be on the market for a day or two.
Months of Inventory Supply, which helps understand how long it would take to sell every home on the market, is at about 1.7 months of inventory, an increase of 240% year over year. So inventory is up massively, but, 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 has dropped to 98.5% meaning on average homes are selling for 1.5% below the original list price. This is a big decrease from this time last year when it was around 104%.
What does this mean for buyers, sellers, and homeowners?
Generally speaking, buyers are very apprehensive right now. They’re cautious and wondering if now is the right time to buy. In turn this requires more patience from sellers.
The Federal Reserve has already stated that they plan to keep the cost of borrowing high for 2023. With one more set meeting for 2022, they plan to increase the rate once more by about 0.5%. While there is no direct connection between these Federal interest rates and mortgage rates, often times there is a direct correlation.
As rates have started to settle out at the high sixes, I believe we have hit the summit or high point for mortgage rates. But we really don’t know yet. If rates drop by a point or more, you can expect to see a flurry of buyers enter the market and massive competition will begin again.
As a buyer, if you can afford to buy a home right now, I would encourage you to do so. Take advantage of the 2-1 buy down program. Learn more about this program here. This program could save you hundreds of dollars a month on your mortgage RIGHT NOW. Rates are likely to go down in the next year or two and this offers you a great chance to refinance when the time is right.
As a seller, there is a lot of competition right now as some buyers have dropped out of the market. Buyers are taking their time with their purchase decisions, so stay patient. There is now an expectation for the seller to be making some sort of contribution to the deal such as with the 2-1 rate buy down. Please ignore comparable sales from six months ago, the market has changed immensly and those comps are no longer relevant. Looking at your active competition is your best bet.
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.