October 2022 Market Report
What’s going on in Snohomish County:
Housing crash vs. Housing normalization and which one we are facing right now.
Days on market and inventory supply are going up.
List Price to Sale Price is still going down.
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 7%. This increases the average sales price for a single family home in Snohomish County to $805,000. Still a staggering increase year over year. This is less than what it has been in regards to the appreciation rate than previous months.
Total Number of Homes for Sale is up to around 1,500 homes for sale which is an increase of 110% year over year.
Days on the Market are at 27 days on average. An increase of 145% year over year. A normal market is around 60-90 so we still have a long ways to go.
Months of Inventory Supply, which helps understand how long it would take to sell every home on the market, is still at about 1.8 months of inventory. 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 98.6% meaning on average homes are selling for 1.4% below the original list price. This is a big decrease from this time last year when it was 106.5%.
What does this mean for buyers, sellers, and homeowners?
Are we in a housing crash? Are prices going down? Where are interest rates at and where are they going?
These are questions I am getting asked everyday right now from buyers, sellers and simply curious homeowners.
If you listen to the national media headlines you would think that we are in a full blown housing meltdown, yet if you actually dig into the data at a local level, the facts tell a very different story.
Bad news and dramatic headlines get eyes, ears and clicks, but they come up short on actually telling you the truth of what is happening in the market.
We have not actually seen home prices go down. In fact they are still up 7% locally over this same time last year.
We do not think that we are in a housing crash, but rather a housing normalization. We all knew that 3% interest rates, escalations $150k over and having 15 offers on one home was not normal.
Over the last two years we have reconditioned ourselves to what a “normal” housing market feels like, but in fact there was nothing normal about it.
Normal looks like 4-6 months of inventory. Normal looks like buyers being able to negotiate and not just the seller.
Normal looks like interest rates between 5-7%.
As a buyer, next spring interest rates are predicted to go down. This will bring a lot of buyers back to the market. Meaning things could get a little crazy again. 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.
As a seller, there is a lot of competition right now as some buyers have dropped out of the market. You need to price your home aggressively. Buyers are now back to asking for contingencies, so you need to prepare yourself for that. The good news is, as a seller, you have tons of equity in your home so you should be making out okay regardless.
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.