Sales Activity Intensity™

Current Effect:
56.1% of homes in Snohomish County went pending within the first 30 days in October—a sharp rise from last month’s 51.3%. This solid jump moves us into the “surge” category, where homes are getting snapped up quickly, thanks to increased buyer demand following the rate cut.

What This Means:
Buyers, competition is fierce. You need to act fast, as homes are still going pending at a rapid pace. Get pre-approved and be ready to make offers quickly.
Sellers, this is still very much your market. With buyer activity on the rise, expect multiple offers, especially if your home is well-maintained and priced competitively.

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Key Stats:

• Pending sales: 952 homes (up from 783 last year)
• Average days on market: 25
• Average sold price: $810,694

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Monthly Inventory Levels

Current Effect:
Inventory has edged up to 1.5 months, a slight increase from last month, but still firmly in the “shortage” range. More homes are hitting the market, but they’re also being scooped up quickly due to renewed buyer interest.

What This Means:
Buyers, you might see more options, but don’t get too comfortable—homes are still selling fast, and competition remains intense.
Sellers, with inventory levels still tight, now is a great time to list, especially with the increase in buyer demand. Make sure your home stands out with competitive pricing and good staging.

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Key Stats:

• Homes for sale: 1,726
• New listings: 1,188
• Closed sales: 916

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Interest Rates

Current Effect:
After the Fed’s rate cut, mortgage rates have dropped to 6.12%—a much-needed relief from last year’s highs of nearly 8%. This reduction has re-opened the door for many buyers who were previously priced out of the market. The impact? Increased affordability and more buyer activity.

What This Means:
Buyers, this is your chance to lock in a more affordable mortgage. With rates down, your purchasing power just increased—meaning you can afford more home for the same monthly payment.
Sellers, lower rates mean more buyers back in the market, potentially leading to more offers on your listing. Be prepared for increased interest.

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Key Stats:

• Current interest rate: 6.12%
• Price per square foot: $419

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Overall Market Trends

The Snohomish County housing market is gaining momentum as lower interest rates bring more buyers into the fray. With pending sales up 21.5% year-over-year and inventory still tight, sellers remain in a strong position. However, if more homes hit the market as predicted, the balance could shift slightly toward buyers in the coming months.

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Key Takeaways:

• Sellers: The market is still in your favor, but with more listings coming online, make sure your home is well-priced to stay competitive.
• Buyers: Don’t wait too long—lower rates mean more competition, so be ready to move quickly when you find the right home.

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Residential Resale, Condos & New Construction in Snohomish County

Resale Residential Homes:
The resale market remains hot, with homes selling quickly. The increase in inventory hasn’t dampened buyer enthusiasm much, but sellers may notice a bit more competition as more homes hit the market.

Condominiums:
Condos are also seeing increased demand, particularly among first-time buyers. Lower rates have made condo purchases more appealing, but buyers should still be cautious of HOA fees, which can impact overall affordability.

New Construction:
With financing costs lower, new construction is becoming a more attractive option for buyers. Builders may also benefit from this surge, as more buyers look for modern, energy-efficient homes in the current competitive landscape.

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The Fed’s Influence

The 50 basis point rate cut has been a game-changer for the housing market. Lower rates have brought much-needed relief to buyers, many of whom were previously priced out by high mortgage costs. With rates expected to continue falling into 2025, this trend could boost buyer activity even further. However, inflationary pressures may limit how low rates can go, so now is a great time for both buyers and sellers to make their move.

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Seasonality

The fall season typically signals a slowdown in real estate, but the Fed’s rate cuts have kept the market humming along. Sellers, expect strong offers if your home is in good condition and well-priced. Buyers, while more homes are becoming available, you’ll still need to act fast—competition remains tight.

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Strategic Insights for Buyers and Sellers

For Sellers:

• Prep Smart: With more listings coming online, you’ll need to make sure your home stands out through proper staging and pricing.
• List Now: Buyer interest is on the rise, thanks to lower mortgage rates, so this is a great time to get your home on the market.

For Buyers:

• Get Pre-Approved: Lower rates mean more competition, so having your financing ready is critical for making a strong offer.
• Negotiate Concessions: As more homes hit the market, some sellers might be willing to negotiate, especially if their home has been listed for a while. Look for opportunities to ask for closing cost contributions or rate buydowns.

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The Rent vs. Buy Conversation

Rent prices in Snohomish County continue to rise, increasing 8.3% year-over-year, making buying a home an even more attractive option. If you’re currently renting, locking in a fixed mortgage rate at 6.12% could provide long-term financial stability. For example, the average rent for a three-bedroom home in Snohomish County is around $3,500 per month, which is roughly equivalent to the mortgage payment on a $680,000 home with today’s rates.

What This Means:
Buyers, purchasing a home now, even with slightly higher rates, can provide long-term equity growth and shield you from future rent hikes. Sellers, if you’ve been renting out property, now may be the time to cash in on rising property values.