There is no doubt that a real estate shift is happening and the once fiery hot real estate market of 2018 is starting to cool. So what has changed?
Did local economics and job security change?
Were home prices increasing to quickly?
Did the financial markets impact buying power?
Before answering the question Will the Market Place Favor Buyers in 2019? let's look at a few key indicators.
- Active Months of Inventory
- Median Sales Price
- Pending Sales Volume
Active Months of Inventory
To few available homes for sale gives sellers the advantage and to many homes available transfer advantage to the buyers. Since March 2018, housing inventory has skyrocketed.
Even though housing inventory has increased to nearly 2014 levels its no where near the highs of 2008.
Median Sales Price for Homes
In Snohomish County, over a 5 year period, the median home price has gone from under $300,000 to over $500,000 with its first sign of active decline in later 2018.
Pending Sales Volume
Since peaking in May, Snohomish County has seen pending home sales decrease when its more common to see a peak in July.
No on to answering the question.
Will the Market Place Favor Buyers in 2019?
Though we expect inventory to rise and pricing to be less combative, 2019 is likely to remain a seller's market. So am I saying it remain a strong seller's market in 2019? No.
A balanced market, where neither seller nor buyer has the advantage, happens when there is approximately 6 months of housing inventory.
But sellers need to understand something. Even though there will still be low housing inventory in Snohomish County the real estate climate will not be as frenzied in spring and summer as the previous years.
Why is that?
Here is why 2019 will start to favor homebuyers.
Homebuyers are faced with rising interest rates. Those rising interest rates will reduce a homebuyer's purchasing power because that same $400,000 home in Bothell now is more expensive per month. The natural result will be lower home prices, longer market times, and greater opportunity for buyers to purchase.
If you're searching for opportunity then now is the time. Set up a property search on our website, create and save as many searches as you like, and be prepped for the deals arise.
Learn more by reading our style guide at 10 Ways to Improve Your Home Search.