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Local Market Update – December 2022
As temperatures drop and we approach the end of the year, the local housing market has remained somewhat sluggish — an indication of a return to normal seasonality. Slower home sales are not necessarily a bad sign; in many cases causes as benign as the holidays and inclement weather have pushed buyers off their path, with many choosing to wait for the new year before resuming their searches.
The market is still experiencing high interest rates, though many experts agree we seem to be past peak inflation levels. While the 30-year interest rate recently dropped to 6.49% from the peak of 7.08%, it remains about a point above the June 2022 average of 5.42%. Windermere’s Chief Economist Matthew Gardner expects mortgage rates will continue to drop. “Early in the new year, I expect the Fed to start pulling back from their aggressive policy stance, and this will allow rates to begin slowly stabilizing,” he says. Gardner expects interest rates to remain above the 6%-mark until fall of 2023, when they should begin to dip.
Interest rates and weather are not the only things causing buyers to slow their trajectory. The larger amount of inventory in most markets has encouraged buyers to take their time and browse more than they’ve been able to in the past two years. Sellers must now compete with one another for buyers’ attention and offers. That being said, listings that are priced accurately for the market are still attracting showings and strong offers. and there are many sellers who can afford to wait for the right offer.
These trends were reflected across King County in November, which saw a median sold price of $827,000 for single-family homes. That’s up from $820,000 in October, but the more noticeable change was in the number of closed sales. The county saw a 44.7% year-over-year drop in the number of sold units, dropping from 2,371 closed sales in November 2021 to just 1,312 closed sales last month.
Seattle followed much the same pattern, with a median closed sale price of $905,000 for single-family homes, up from $850,000 the same time last year. Closed sales also decreased from 763 in November 2021 to 423 last month, a drop of 44.6%. Condos in the city experienced an even greater decrease in sales, with a 54% year-over-year dip in sold units.
Prices on the Eastside decreased to a median of $1,316,000 for single-family homes, after holding steady at $1,350,000 since August of this year. The inventory for Eastside single-family homes currently sits at 2.4 months. Condo prices in the area rose from $555,500 in November 2021 to $569,500 last month. Eastside buyers may be opting for condos as a more affordable choice given the current interest rates. Condo inventory in the area currently sits at 2 months.
Last month just 10% of residential units on the Eastside sold above asking price. More than half the listings on the Eastside experienced price reductions in November as well, with 54% of sold listings having had a price adjustment at some point. Despite these recent trends, it’s important to note that median home prices on the Eastside are up 24% over the past two years — from $1,060,000 in 2020 to $1,316,000 last month.
Snohomish County remained somewhat similar to last month, with slightly less than 2 months of inventory on single family homes and a median sold price of $700,000. That’s up slightly year-over-year, from $695,000 in November 2021. Condos in Snohomish County had the least inventory of any area, with only 1.6 months’ supply.
Although interest rates are higher than we’ve grown used to over the past two years, the increased inventory means it is still a great time for buyers, especially first-time homebuyers, to enter the market. Resources provided by the Washington State Housing Finance Commission, including its free homebuyer education seminars and its down payment and closing costs assistance programs, can help counter some of the obstacles that may be keeping buyers sidelined. A savvy combination of interest rate buy-downs, adjustable rate mortgages and the possibility of refinancing for lower rates can also help would-be buyers hit the ground running.
If you have questions about what this market means for you, please reach out to your Windermere broker for assistance.
EASTSIDE
KING COUNTY
SEATTLE
SNOHOMISH COUNTY
VIEW FULL SNOHOMISH COUNTY REPORT
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As the final quarter of 2022 rolls on, it’s clear that these last months will be anything but typical for home buyers and sellers in King and Snohomish counties. In a real estate market that’s been defined by high competition and low supply for the last number of years, buyers and sellers are changing tactics as market dynamics shift due to rising mortgage rates and growing inventory. While some buyers are waiting to see if rates and home prices drop, others are getting creative with their financing by utilizing buydowns, adjustable rate loans, carrying back second deeds of trust, and closing cost allowances to make their purchases. Sellers have been slower to adjust, with many resisting the idea of lowering their asking price to meet the constraints of buyers dealing with high interest rates. However, for sellers willing to correctly market and position their listing, successful sales – and even occasionally multiple offers – can still be attained. King County as a whole saw the median price of a single-family home increase from $875,000 in September to $903,000 last month. This was largely a function of price gains in Seattle, where single-family homes sold for a median of $950,000 in October — up from $900,000 in September. Seattle and King County both have about two months of available supply, which is the most balanced inventory level the market has seen in years. The Seattle condo market has slowed a bit more than residential sales, with over 3 months of inventory and a median price of $522,500 — down from $525,000 year-over-year. On the Eastside, the median price for single-family homes has remained constant, sitting at $1,350,000 for the third month in a row. The average monthly mortgage payment on the Eastside dropped 19% from $9,226 in April 2022 (when the median price was $1,722,500 with a 4.98% interest rate) to $7,430 in August 2022 (with a median price of $1,350,000 at a 5.22% interest rate). However, while the median price has remained the same since August, the 30-year interest rate rose to 6.9% in October. At that rate, the average monthly payment is $8,891 — only 4% off the peak payment of $9,226 in April; this is despite a 22% drop in prices since then. Snohomish County saw prices fall slightly from a median of $735,000 for single-family homes in September to $730,000 last month. With a little less than two months of inventory, that market remains slightly more competitive than the Eastside or Seattle, possibly due to lower prices making it more accessible for buyers as they combat the higher interest rates. Windermere’s Chief Economist Matthew Gardner weighed in on the effect of mortgage rates on buyer behavior. While he believes many buyers may be forced to wait (either voluntarily or not) for interest rates to stabilize, he advises would-be buyers not to wait for prices to bottom out. “Those who hope to pick up a home ‘on the cheap’ are likely in for a long wait,” he said. For many buyers, the answer to this conundrum is a pivot to adjustable rate mortgages, which are currently set around 5.9%. With the 30-year fixed mortgage rate currently at 6.9% or higher, adjustable rate mortgages offer a more affordable inroad to homeownership, with the possibility of refinancing to a lower rate in a few years. As we navigate these changing market conditions, your Windermere broker can help you assess the best path forward for your home sale or purchase. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
Increasing listings inventory, lengthening time on market and a slowdown in home price increases across the Puget Sound region herald a return to normalcy and better opportunities for buyers. According to September data from the NWMLS, active listings nearly doubled from a year ago, with pending sales declining by about 31%. “The ‘Great Reversion’ continues, with the number of homes in the tri-county market of King, Pierce and Snohomish counties up 106% from a year ago,” says Windermere’s Chief Economist Matthew Gardner. “It’s worth noting that current inventory levels in King and Snohomish counties are still around 13% lower than they were in September 2019 prior to the pandemic-induced market shift.” While the recent sales data may be pointing to a market shift of a different sort, they may reflect some normal seasonal trends as well. October is typically an average selling month, with November typically performing about 76% as well as an average month, and December and January slowing even further as the holidays and end of year pull some buyers from their home searches. That being said, last month still saw year-over-year price increases in the Puget Sound’s busiest metros, despite some month-over-month price dips. King County single-family homes saw a price decrease from $899,999 in August to $875,000 last month. That’s still up from last September’s median price of $825,600, and condos also saw year-over-year price increases, from $466,501 last September to $483,000 this September. With about two months’ inventory for both housing types, King County buyers are better able to take their time and consider the details of their purchase. Seattle also saw a slight month-over month decrease in single-family home prices, from a median price of $927,000 in August to $900,000 last month. That’s still up six percent from $850,000 in September 2021. Conversely, year-over-year condo prices slumped a bit, falling to $499,000 last month from $505,000 in September 2021. Condo inventory has increased as well, with buyers benefitting from over two months’ supply. Sellers are encouraged to price wisely and accurately to beat the competition in these conditions. The Eastside was the only area to see prices stay the same month-over-month, with the median price for a single-family home remaining constant at $1,350,000. That’s an increase from the median price of $1,310,000 in 2021. Active inventory also increased, up to 1.9 months’ supply. The last time the Eastside had this many listings (approximately 1,200) was before the pandemic in 2019. Snohomish County followed Seattle and King County, with prices dropping slightly to a median of $735,000 for single-family homes last month — down from $749,000 in August. Inventory was slightly tighter in the area, with about 1.75 months’ supply, though it’s still an improvement over the tight inventory at the height of the pandemic. Many buyers are feeling a bit of a “pandemic hangover” when it comes to interest rates, which may be contributing to the increase in inventory across the region. The conditions that led to the historic low interest rates were unprecedented, and buyers now need to be willing to consider buying at a higher rate with the goal of refinancing later on if they’re able. The future of the local market will be dictated by fluctuations in interest rates. If rates increase from the September average of 6.11%, real estate experts expect new pending sales to continue to be 25% – 30% below the prior year in units. Median closed sale prices will roughly decline 10% for each 1% increase in interest rates. However, if interest rates decline from the September average, we can expect pending sales to increase, prices to remain flat and active inventory to decline more than normal. Matthew Gardner also points out that home prices “remain positive compared to a year ago.” He doesn’t expect this to change by the end of 2022. By spring, however, Gardner believes “it’s likely that year-over-year prices will start to trend negative. That said, I firmly believe that this will only be a short period of correction, so homeowners in the Puget Sound area shouldn’t be too concerned, especially given that 64% of them are sitting on over 50% of home equity.” If you have questions about how home inventory or inflation could impact your position in the real estate market, please connect with your Windermere broker. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
After its breakneck pace over the last two years, it appears the housing market has finally reached a soft bottom to the price corrections that began in April of this year. Reports that we’re entering a bear market are generally exaggerated, however, as the market seems simply to be resetting to a more balanced state where buyers and sellers are at last on more equal footing. Perhaps as much as anything, the market’s performance in August reflects a typical pattern for a month that has traditionally been a slower time for housing sales. In King County last month, available inventory declined slightly to 1.5 months’ supply, with the median home price of $899,999 up slightly over July’s median of $890,000. That’s also an increase of 5.8% from $850,000 in August 2021. With 57% of homes selling in under two weeks and 22% selling over list price, many King County home buyers still have to move quickly and competitively, although with more leverage than they had earlier this year thanks to recent supply increases. The Eastside had slightly higher levels of housing inventory available, at about 1.6 months. The median sold price for single-family homes rose 4% year-over-year, to $1,350,000. The higher asking prices in this area mean fewer homes are selling over asking than in Seattle, with about one in four homes selling at or over list price. Condos remain a more affordable option in this highly desired area, with the median price for an Eastside condo sitting at $569,500 last month. Seattle has slightly less supply than King County as a whole, sitting around 1.4 months of inventory. The median sold price for single-family homes was up 6% year-over-year, at $927,000. About 65% of single-family homes in the city sold within two weeks, while 26% of homes sold above list price. With 2.4 months of inventory, condos may offer buyers an easier way to break into the market. The median sold price for condos last month was also a more affordable $520,000, though that’s still up 8.3% year-over-year. Increasing rents in the city and across the Puget Sound region are driving some buyers into the market, as homeownership is a hedge against inflation and rising rent costs. Even with that in mind, sellers still need to price accurately to avoid their homes sitting on the market for too long. Snohomish County had the lowest inventory level at 1.3 months of supply (which is still more than the county’s average the past few years). The median sold price for single-family homes was $749,999, which is up 8% from August 2021. Just over half of the available homes sold within two weeks, and 19% sold over list price. The median price for condos in Snohomish County fell almost 5% year-over-year, landing at $474,999. This area continues to be a draw for buyers who may be priced out of the Seattle and Eastside markets. Windermere’s Chief Economist Matthew Gardner believes the decrease in prices is a sign we’re entering a more typical housing market than we’ve seen in the last few years. “Home sales increased month-over-month, but the rise in listings is causing prices to soften,” he said. “I predict prices will drop further as we move into the fall. The market is simply reverting to its long-term average as it moves away from the artificial conditions caused by the pandemic.” If you have questions about what our shifting market conditions may mean for you, please contact your Windermere broker. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
The summer continues to heat up, and patient buyers are being rewarded as market shifts create a new dynamic between buyers and sellers. After years of intense competition between buyers for the most desirable listings, increasing inventory and slower price appreciation across the region has caused a pivot, with sellers competing more strongly against each other than they have in previous years. While this may cause uncertainty in some sellers, the rise in active inventory is an indication that we are returning to a more balanced housing market as a whole. Sellers can still be very successful with their home sales, as long as they price their homes accurately and understand that they may not see the exorbitant offers that were typical a few months ago. This is a pragmatic approach, and we should see some relief in the “buyer gridlock” that had kept homeowners in place who wanted to sell and move, but simply had no place to go. Even with the increased inventory across the Puget Sound region, we may start 2023 with low supply, high demand, and multiple offer situations. Prices are coming down largely as a result of the previous rapid price appreciation and rising interest rates. However, the Puget Sound’s underlying lack of supply and huge demand has not changed, although rates have improved. Seattle’s median price for single-family homes rose 6.4% year-over-year, from $896,500 to $954,500. That’s down slightly from the million-dollar median the city hit in April, and should help create a more inviting market for prospective buyers. The median price for condos is currently a more affordable $537,000, with 2.5 months’ of inventory. King County as a whole is experiencing much the same phenomenon, with the median sale price for single-family homes decreasing from $938,225 in June to $890,000 last month. However, that’s still up 2.1% from $871,000 in July 2021. Single-family homes on the Eastside currently have the most inventory of the tri-county area, with 2.5 month’s supply. The median price for single family homes has dropped to $1,420,000, down from $1,500,000 in June, but up 6.7% year-over-year. It’s important to note that this decrease in the median price is likely not due entirely to price depreciation, but from the fact that lower-priced homes made up a larger percentage of the overall sales in the area, thus lowering the median sold price. Real estate experts believe that the area continues to model a price correction based on the 2018 market, suggesting the median closed sales price will bottom out in about two months’ time around $1,300,000 or higher. Snohomish continues to remain a more affordable area for buyers, with a median sold price for single-family homes of $770,000. Although that’s down from June, it is up a full 10% year-over-year, from $700,000 in July 2021. The area also has more active inventory—nearly two months’ supply. This, combined with the lower median price for condos of $500,000, makes it an appealing option for buyers with more constrained budgets. The increase in active inventory across the region is not an indication of slowing demand. The majority of homes are selling in under two weeks, and prices continue to appreciate year-over-year. Builders are working diligently to meet demand, but until more projects come online, buyers and sellers will have to navigate these new market dynamics together. If you have questions about these changes in the market or about real estate in general, please reach out to your local Windermere agent. They’re happy to help. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
Cooler temperatures and a cooler regional real estate market have been this summer’s hallmark thus far. After months of blazing hot sales and a breakneck pace, buyers are finally seeing inventory levels accelerate and price gains slow. With inspection and financing contingencies once again becoming the norm, the region may at last be shifting toward a more balanced market. Area home prices were down across the board last month. The median sold price for King County single-family homes dropped to $938,225, slightly lower than May’s near million-dollar price ($998,888). Year-over-year, however, King County prices were still up by 9%, despite the higher 1.5 months of available inventory. Seattle mirrored the county’s trend, with the median price dropping from $1,025,500 in May to an even $1,000,000 in June. This price was still up 12% year-over-year, indicating continued demand for housing in the city. Real estate experts have pointed out that areas that saw the greatest appreciation earlier this year will likely see a more significant dip in prices as the market rebalances. The Eastside market bore out this theory in June as the median sold price for single-family homes was $1,500,000 — down almost $100k from May’s median price of $1,590,000. That said, last month’s Eastside median sold prices were still up over June 2021, increasing 10% year-over-year in the residential market and 12% in the condo market. And with two months’ supply of homes currently listed, Eastside buyers have significantly more options to choose from than they would have had earlier in the year. Snohomish County — long a refuge for buyers seeking more bang for their buck — followed a similar trend. The median sold price for single-family homes dropped to a more attainable $799,950, down from May but still up 11% year-over-year. Snohomish County condo prices dipped in June as well, with the median sold price of $500,000 down 9% from May and up a meager 1.6% from June of last year. While these recent price dips may cause concern for some sellers, local real estate experts reiterate that this is a necessary step toward a more balanced market. “The increase in listings has started to slow the rabid pace of price gains that we’ve experienced,” said Matthew Gardner, Windermere’s Chief Economist. “This is a good thing, not a cause for concern.” Other factors influencing the summer real estate market are higher mortgage rates, higher post-pandemic rates of travel, and typical seasonal buyer patterns. With graduations occurring and school years finishing up, many potential buyers are scratching their itch for travel and family time, putting off their home search until a little later in the year. For sellers looking to make the most of the current market, flexibility is key. Pricing their home correctly from the get-go and being willing to negotiate with buyers on terms can still result in a top-of-market sale, albeit one in which multiple offers are less expected. If you have questions about real estate opportunities in the current market, please reach out to your Windermere broker for additional insights and analysis. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
The tides of our local real estate market may at last be shifting, as buyers find relief in increasing inventory and the frenetic pace of sales slows noticeably. At the end of May, inventory across the 26 counties served by the Northwest MLS had increased by 59%, with 8,798 active listings in the database, compared to 5,533 active listings just a year ago. While this shift may cause concern from some who anticipate a drop in the market, Windermere’s Chief Economist Matthew Gardner had this to say: “What’s more likely to occur is that the additional supply will lead us toward a more balanced market, which after years of such lopsided conditions, is much needed.” While inventory has increased, the meteoric price hikes seen in this first part of 2022 – including again in May’s closed sales – is expected to slow dramatically in the next half of the year. Seattle saw a historic first in April, with the median sold price for a single-family home topping $1 million for the first time. May home sales continued that trend, with the median sold price inching up to $1,025,500, which is a 12% increase from $919,000 in May 2021. King County as a whole mirrored this trend, with the median price of single-family homes reaching $998,888 in May, up from $995,000 in April and up 14.8% from last May’s median price of $869,975. May closings reveal that the Eastside and Snohomish County didn’t follow this same pattern, instead experiencing a much-needed cooling of prices. On the Eastside, the median sold price for single-family homes fell from $1,722,500 in April to $1,590,000 in May. While last month’s median price is the lowest since January of this year, it was still up 22% year-over-year. The Eastside saw an increase in the percentage of homes that had a price change before selling, hitting 10% in May — double that of April. This is likely due to Eastside sellers needing to adjust their price expectations. While a majority of listings in the area — about 66% — still sold over list price last month, a full month of inventory and a 403% increase in active inventory on the Eastside from February to May means that buyers have more choice and agency than they’ve had in some time. Homes are still selling, but multiple offers are far fewer and sellers are more likely than before to accept an offer written with contingencies. Snohomish County also saw a shift in May, likely due to the combination of increasing inventory running headfirst into decreasing buyer budgets thanks to rising mortgage rates. With .85 months of inventory, prices reflected this, with the median sold price for single-family homes falling slightly to $815,000 last month, down from $839,298 in April. However, a majority of homes sold for over list price and quite quickly, averaging less than two weeks on the market. It’s worth noting that these statistics largely reflect home sales that went under contract in prior months when competition was at its fiercest. The median sold price for Snohomish County condos dropped just slightly to $545,000 last month, down from $550,000 in April. With only two weeks of inventory on hand, the county’s condo market is likely to remain competitive for a while. Falling prices in the Puget Sound region may have caused concern for some, but most analysts see this as a necessary and long-overdue price correction. Prices for single-family homes (excluding condos) in King County rose from $775,000 in January to a whopping $995,000 in April, a change of $220,000 in only four months, or 28.4%. Last month, the Eastside saw prices decrease by only 8%, and this was likely only because prices had previously risen so astronomically in the area. Neighborhoods that saw the highest appreciation will likely experience a sharper correction, but this may serve to help some previously unlucky buyers re-enter the market and finally find success. If you have questions about pricing trends in your neighborhood, or how to make the most of your purchase or sale, please reach out to your local Windermere broker to see how they can help. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
After a long stint of suppressed housing inventory across our region, buyers may at last have more options as the supply of available homes ticks up ahead of the summer market. The month-over-month increase in inventory has been as much as 50% in some areas, offering renewed opportunities for those buyers who are not dissuaded by high home prices and rising mortgage rates. The Eastside appears to have experienced the most dramatic inventory growth, with .79 months of available single-family homes last month compared to .46 in March. Seattle increased slightly to .59 months of inventory, while Snohomish also had a notable increase up to .67 months of inventory compared to .46 in March. The increase in supply is likely occurring because rising home prices and mortgage rates have put a slight damper on sales in the area. Last month, the median sold price for a single-family home in Seattle surpassed $1 million for the first time—landing at a historic $1,019,950. This is up 16.6% year-over-year from $875,000 in April 2021. The median price for single-family homes on the Eastside last month was an eye-watering $1,722,500, with 80% of homes selling over list price. Although inventory has increased in the area, Eastside homes are still selling quickly, with 96% of listings selling in under two weeks. King County as a whole also saw prices increase, with the median sold price for single-family homes reaching $995,000, up from $830,000 a year ago. Snohomish County home prices have kept pace with the market, with the median sold price for a single-family home reaching $839,298. That’s an increase of 24.3% year-over-year from $675,000 in April 2021. This is likely due to increased demand from buyers who can’t compete in the intense Seattle and Eastside market, seeking more bang for their buck in the relatively more affordable Snohomish County market. Affordability issues have also trickled into the condominium market, as some prospective homebuyers divert from the single-family market to condos. Eastside condo prices have increased 29.7% year-over-year to $674,444 last month from $520,000 in April 2021. In Snohomish County, the median sold price for condos rose to $550,000 year-over-year from $432,250 last year. That’s an increase of 27.2%. Despite rising home prices and heftier mortgage rates, many buyers are still eager to take advantage of the financial benefits of homeownership. According to Windermere’s Chief Economist, Matthew Gardner, “Owning real estate is a hedge against rising inflation. Homeowners with a fixed rate mortgage will always have the same monthly payment, even as other costs rise.” If you have questions about how to find the opportunities presented by today’s market, please don’t hesitate to connect with your Windermere broker. They’ll answer based on a real-time analysis of the market and a nuanced consideration of your specific needs and goals. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
The spring market continues its frenzied pace, with soaring prices and stiff competition testing the resolve of buyers. Despite these obstacles and rising mortgage rates, inventory remains low across King County, as pending sales keep pace with new listings, demonstrating a strong demand from buyers. This demand has factored into the way sellers are approaching the market. Windermere’s Chief Economist Matthew Gardner notes that median listing prices continue to rise, saying “this suggests that sellers remain quite bullish when it comes to pricing their homes.” This was certainly true in March on the Eastside, where the median closed sale price for single-family homes was $1,700,000, an all-time high. This was up 26% year-over-year, and slightly up from February, when the median was $1,697,500. In Seattle, the median price for single-family homes achieved an all-time high of $970,000, up 18% year-over-year. Snohomish County continues to feel the impact of this voracious demand, with a median closed sale price of $1,298,000 for single-family homes — that’s an increase of 38.1% year-over-year. Not only are asking prices increasing across the region, but many homes are selling for well over list price. On the Eastside, a staggering 85% of closed sales in March 2022 sold for more than the list price. Overall, that’s down from an all-time record last month of 87%, but tied for the second-highest month ever with April 2021. Of the Eastside homes that sold over asking last month, the median difference was 21% over asking, and they spent an average of just 4 days on the market. Seattle is experiencing a similar pattern, with 71% of the closed sales in March going over the list price. This is a high for Seattle; in March and April of 2018, 63% and 68% of listings closed over asking, respectively. Last month, the Seattle listings that sold over list price sold for a median of 15% over the list price, and were on the market for 5 days. In Snohomish County, homes that sold over list price went for a median of 21% over the asking price. With these conditions, many buyers are looking to condos as a more affordable way to break into the market. Consequently, condo prices have also seen a year-over-year increase. In King County, condos remain relatively more affordable, with a median price of $540,000 in March 2022. That’s up from $470,000 in March 2021, a 14.9% increase. Snohomish County has seen a more dramatic increase, as the median condo price in March 2022 was $555,000 — up 33.1% year-over-year, from $417,000 in March 2021. Matthew Gardner expects mortgage rates to continue trending higher in the coming months, but so far he says there’s nothing to be too concerned about, as the interest rates have not yet caused sales to taper off. Savvy sellers can still easily benefit from the opportunities presented by this market, and although rates are higher, buyers can finance their home purchase with rates still far lower that the historical norm. If you’re looking for knowledgeable advice as you consider when might be your best time to enter the market, whether as a buyer or a seller, please connect with your Windermere broker. They’ll give you their professional insight to help you make the best decisions possible. VIEW FULL SNOHOMISH COUNTY REPORT This post originally appeared on
As we head into the traditionally busy spring season for homebuying, the market seems to be keeping up its intense pace, with low inventory across the board and multiple offers the norm. A marginal increase in listings across King and Snohomish counties has done little to counter fierce buyer demand, with certain areas on the Eastside virtually unable to sustain new inventory. With these trends likely to continue, buyers will need to be aggressive and ready to compete. Prices continue to rise across Seattle and the Eastside, with the median sold price for single-family homes on the Eastside increasing to an eye-watering $1,697,500 in February — a 34% year-over-year increase. Seattle saw a 16% year-over-year increase last month, with a median sold price of $925,000 for single-family homes. These median home prices for the Eastside and Seattle were all-time record highs. Fierce competition on the Eastside last month drove price increases, with 87% of homes in the area closing above list price and the median sold price coming in at a whopping 23% over list. At the start of this month the Eastside had just under two weeks of inventory, and 94% of last month’s listings sold in under two weeks. The pace of home sales in Seattle was almost as hot, with 86% of homes selling in two weeks or less. Snohomish County saw a year-over-year price increase of 19% in February, with a median sold price of $745,725 for single-family homes, a record-high for the area as well. The continuation of remote and flexible work options continues to encourage buyers to purchase in the area, and by month’s end Snohomish County inventory had dropped to less than two weeks’ supply. The competition and rising prices have some buyers torn between jumping into the market while they still can, or waiting to see if a price correction will occur within the foreseeable future. The last correction occurred in 2018; in the three years from May 2015 to May 2018 King County home prices rose 51% from $480,942 to $726,275. During the same time, interest rates increased from 3.84% to 4.59%. Prices then dropped 16% from $726,275 to $610,000 and took 18 months to rise above $726,275 again. While this context is helpful, it’s also extremely difficult to predict when and if a price correction will occur in the near future. Amid rising concerns over Russia’s invasion of Ukraine and its impact on the American economy, many homebuyers are wondering if mortgage rates — which have generally been rising since the beginning of the year — will be affected. Windermere’s Chief Economist, Matthew Gardner, tied the beginning of the war to a short-term drop in rates. “In general, when there’s any sort of global or national geopolitical event, investors tend to gravitate to safety, and this invariably means a shift out of equities and into bonds. So at face value Russia was actually responsible for the tiny drop in rates we saw immediately following the invasion, and also the more significant drop we saw last week when the market saw the biggest two-day drop in rates in over a decade.” Nonetheless, Gardner said that according to his model, there is actually likely to be a “significant jump” in rates over the first two quarters, though these increases will slow in the second half of the year. If you’re looking for additional insight and extra support as you consider whether now is the right time to buy or sell a home, please feel free to reach out. We’re here to help you make the best decisions as you navigate the real estate market, today or any time in the future. VIEW FULL SNOHOMISH COUNTY REPORT TERMS OF USE | PRIVACY POLICY | ©2021
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