The listings that make it to the market are selling fast, bringing back the multiple offer’s scenario for some properties. Homeowners with a high percentage of built-up equity, and life events are moving the market.

Today’s buyers have increased expectations that homes are move-in ready on day one, a perfect opportunity for sellers to be Market Ready, Day One™.

Resources like MarketReady+ and Seller Listing Launch® can set you apart when attracting buyers to your property.

As Daylight Savings Time begins in March, the market will continue its surge into the spring market.

We continue to stay on a similar trajectory as we were on in 2018 where after an extended period with extremely low inventory and low interest rates, the interest rates increased and the sales intensity decreased.

In 2018 this was most noticeable starting in June and going through the winter as activity started to pick up in March.  We would then go on to set sales records for the next 2-3 years.

In February of 2018 we got 1,102 new listings and this February we got 794 new listings.  In March of 2018 we shot up to 1,606 new listings.  I don't anticipate that big of an uptick in 2023 primarily because of interest rates.

"Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected." (CNBC 3/7/23)

Until we get a influx of listings or the interest rates become unmanageable... We do not have enough houses to sell.  We are currently showing .7 months supply of inventory in Snohomish County and that is a Severe Shortage.

We are starting to see bidding wars on listings that are Market Ready.  No where near as bad as the last few years.

• Sellers need to be Market Ready Day One to take advantage of the low supply and ensure their homes sell swiftly and for top dollar.
• Buyers need to readjust to the new normal and get themselves Buyer Ready Day One.  Not every listing is a multi-bid scenario but we need to be ready when they are.

It is always OK to buy/sell within same market timing.  In this market most sellers are sitting on big equity and can take their time to get their home ready for sale.  After we sell we have a much higher chance of buying our move up or move down without having to arrange for temporary housing.

The dooms day stories about a potential crash continue to circulate and there is no doubt that we have seen a severe dip in the economy.  I have found that the best way to really understand how the real estate market is responding is to look at the data and match it up with the eye test.

We tend to look heaviest at the 3 key indicators to determine the health of the market.

The percentage of new listings that go pending, or under contract, in the first 3o days.  We call this the "Sales Intensity Scale". During the pandemic we literally had to make up a new adjective to label what was happening as we were seeing over 90% of new listings go pending in the first 30 days.  We called that an Ultra and Uber Frenzy Market.  We are currently sitting at 69.5% of new listings.  We call that a FRENZY Market.  A median or average type market would be around 30%.

Inventory levels continue to decrease and are at what we consider a Severe Shortage Inventory Level.  This last year we hit all time record lows for the amount of homes for sale.  When there are not many homes to buy and many people looking to buy homes that is simple Supply and Demand.  Not enough supply for all that demand.

Interest rates play a huge role in the demand.  If people can not get financing, or financing that match their needs, that will limit the demand.  Right now interest rates are under 7%.  Data shows that we will tolerate interest rates under 7% and continue buying homes.

BONUS TIP:  With some listings it is possible to negotiate for Seller's concessions.  Look for homes that have been on the market longer than 7-10 days.  Generally these concessions would go towards your closing costs.  Now might be a good time to negotiate seller concessions towards buying down your interest rate.  Either a permanent or temporary 2/1 buydown.

With .7 months of supply we are again seeing some bidding wars, waiving of contingencies and ultra quick sales.

If you are thinking of buying a home in Snohomish County right now and are worried that the interest rates have increased it is important to contrast that to what you gain.

Many experts are predicting that we should start to see rates drop again in the 2nd half of the year.

"Marry the house (while they are easier to get) and date the rate until they come back down to the 4's". 

We should stay in a Surging to Frenzy market meaning that 55 - 75% of homes sell in the first 30 days through the summer.

Seattle rent remains high and according to Zillow, "Rent growth should remain strong in the short term as high home prices keep many would-be first-time buyers in the rental market. Over the next 12 months, rents are expected to grow more than inflation, stocks and home values."

According to Rent.com Lynnwood's average 2 bedroom rent for an apartment is $2,545 month.  Which equates to approximately a $500,000 home (view Snohomish County homes for sale in the $400K - 600K price range) with 20% down on a 30 year fixed 6.93% bought down to 4.93% with a temporary 2-1 buydown interest rate loan.

As we find ourselves in recession-like situations the best hedge for inflation is real estate.  

As we have been talking about for a while now Seattle has the 2nd highest percentage of tech workers in the country. "Seattle Overtakes Boston as Third-Richest US City by Household Income" (Bloomberg)

Despite WA being fully open we will continue to offer a full suite of Virtual Real Estate Services.