THE SNOHOMISH COUNTY HOUSING MARKET HOLDS STEADY AT A SURGE LEVEL FOR THE MONTH OF OCTOBER
ENTERING THE WINTER MARKET FOR HOUSING ACTIVITY
With a change in the season, comes a change in the housing market dynamics. As we enter the winter market the number of new listings coming on the market will be in short supply from November through February. With only 30 to 50 percent for the monthly total of new listings as compared to the spring and summer months, resulting in higher sales activity each month than the number of new listings. The stage is set once again for a frenzy housing market after the first of the year, in the price ranges where there is a shortage of active listings for sale.~ J Lennox Scott
The Snohomish County Real Estate Market Analysis For October 2017 Shows The Selling Market Has Slowed Down For The Winter
A few things that really stuck out to me as I was compiling the October stats.
- Every major statistical category dropped expect the interest rate and average days on market.
- Even though every major statistic category dropped from last month, they are still up from the same time last year.
- Even with the dipping performance numbers we are still in a high producing or surging real estate market.
What that story tells me is that the selling market has started to slow down as people get ready for the holidays. However, we have to keep that in perspective to the norms. The average days on market just 5 years ago was 61 days. Houses are still selling over 2x’s faster.
The inventory has started to slow back down as people will be less likely to sell their house during the holidays.
The Washington State Economic and Revenue Forecast Council showed strong local job growth in 2016 and projects another increase of 2.9 percent in 2017.
According to the Seattle Times and US Census Bureau Seattle is the fastest growing city in the country.
With ridiculously low interest rates, increased job growth, and more people moving to Seattle than anywhere else in the country, we expect to see this slight dip head back up by February.
If you want to stop and list your home right now we would not blame you. Just click the button below or reply to this email and we will come out and give you a market price valuation.
If you are a buyer it is more important than ever to pair up with a real estate agent, or team, that has a proven strategy to get your offer accepted.
Below you will find a breakdown of the data to find out what is causing this surging sellers market.
With only .9 months of supply if no other homes were listed in the next .9 months we would run out of houses to buy.
Last month there was 1.2 months supply. After a steady 6 month increase, we see this number fall slightly again.
As you can see from the table above anything below 6 months is considered low. Low inventory means higher demand. Higher demand drives the price up.
DAYS ON MARKET
The average home in Snohomish County is selling in 26 days. In contrast, 5 years ago the average days on market for Snohomish County was 61. Homes are selling 35 days faster today than just 5 years ago.
In addition, 63% of homes are selling in less than 30 days. That number is usually closer to 30%.
Because there are less homes for sale and there are still many buyers trying to buy… the homes that do list are usually selling faster than normal.
We have already seen where a low inventory should drive up prices. The average sale price for Snohomish County residential homes is $435,384. Although, we can see with the changing of the seasons the prices are starting to dip.
In comparison 5 years ago the average sales price was $262,432. That is a $172,952 increase over just 5 years ago.
In addition the average home is selling for .03% higher than it is listed as. That means that people are still offering slighty more than the listing price to “win” the listing. Indicating that there is still a backlog of buyers.
In order for it to be a sellers market there must be buyers.
The interest rates increased just slightly to remain at a ridiculous 3.94% (source: Freddie Mac). Leaving plenty of buyers that are in the market.
With the the seasons changing there will be slightly fewer listings and more buyers should enter back into the market, as is seen by the number of homes selling.
1,514 homes were sold in Snohomish County last month. That is up 592 homes from 5 years ago, and 127 from just last year.
It seems, as many homes come on the market they are still selling quickly.
According to Zillows massive data set early May is the best time to list a home to maximize value. November is the best time for buyers to maximize value.
Now is still a great time to sell as you will have less competition against your home, there are still a backlog of buyers, and the prices and selling times are still high.
These next 2 months are the best time for buyers.
JOB AND POPULATION GROWTH
According to the Washington State Economic and Revenue Forecast Council Washington State should see in increase of job growth of 2.9% in 2017. With a healthy projection for 2018.
(Courtesy of Seattle Times)
According to the US Census Bureau Seattle was again the fastest growing city in the country.
PUGET SOUND REAL ESTATE TRENDS
The Snohomish County Housing Market Analysis INFOGRAPHIC
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PAST MONTHS REPORTS
We put this list together every month. If you are interested in seeing past months you can access the archive below:
Snohomish County Housing Market Stats
- $435,384 was the average sold price for listings in the Snohomish County in October of 2017
- 1,416 new listings were added to the MLS for Snohomish County in October of 2017
- 2,071 homes were for sale during the month of October in Snohomish County
- 1,514 homes sold in the county in October
- .9 months of inventory available in Snohomish county in October
- 26 was the average days on market for a home to sell in the county
- 100.3% was the average listing price vs. sales price percentage
- 236 was the average price per square foot in Snohomish County
- $659,171,165 was the total closed sales volume for the county in October
- 3.94% was the average interest rate (source: Freddie Mac)
- 63% of homes sold in the first 30 days in Snohomish County in October of 2017
While we did see almost every major statistical category drop this month as is customary with the winter season, it is important that we keep that in perspective. We are still at above average highs for the Snohomish County real estate market.
The projections are telling us that everything is headed for back up after the winter season.
Now may be a great time to sell your home if it is not in perfect shape, as there is less competition but still a backlog of buyers.
If you are considering a move up, a move down, or just want to sell your home… Inventory is still at record lows. Homes are selling at a rapid pace, homes are selling for a .03 percent higher than they are listed at, the Interest Rates are still at below average lows, and the job market remains strong.
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