Snohomish County is well into 2012, with another day of snow, and December 2011′s real estate statistics are published for review. Personal Experience Moment: To the disappointment of current clients, I noticed many homes in the $75k – $150 price range dropping off the market right at the first year.
Q: Why would homes be taken off the market this time of year?
Homes are taken off the market for many reasons 1) sellers decided to rent (one of our clients rented their home), 2) sellers fire their listing agent and take time to hire another or choose to go FSBO, 3) the seller and listing agent’s contract to sell the home expired on 12/31/2011 and 4) sellers decide just to stay in the home and not sell. With bank owned properties I see item 3 be the case.
With that said, take a look at SUPER low housing inventory levels.
Months of Available Inventory
From November 2011 to December 2011 the monthly supply of inventory dropped 24% to 3.9 months of inventory. These low inventory levels tip the tide into the seller’s favor (a balanced market is 6 months of inventory). As result, buying a home right now is highly competitive which has been the case since June 2011 when inventory started to decline. Thinking about selling? Why not sell your home while their is less competition.
Market Supply and Demand
Over a two year period Snohomish County has experienced a 32.2% increase in homes under contract (Statuses: Pending, Pending Inspection, Pending Short Sale) and a whopping 18.3% in homes sold (though sold homes has been declining since August 2011 which typically marks the end of the busy season).
The 90 Real Estate Perspective Report
Investors and first time homebuyers are on the move in the $10k – $160k price points with those homes selling for 102% – 107% of list price. In Snohomish County there are currently 188 homes priced from 0 – $120k and 260 homes priced from $120k – $160. I know of a few very well priced homes that are just needing investors or cash buyers to bring them up to par and those homes could make great starter for a family member as well. In addition, if you’re considering investing in these two price points just know that competition is fierce and multiple offer situations are the norm and not low ball starting point offers.
Average Real Estate Days on Market
Flat …
Raw Snohomish County Real Estate Statistics
The below chart is broken out by city and area (area is the designation give to particular cities from the NWMLS). It is notable that Snohomish County is still undergoing a declining market with the median home prices for Dec. 10/Dec.11 month comparison show prices decreasing by 8.4% and the Dec. 10 / Dec. 11 Y-T-D Median home prices declining 11.6% (that is still almost 1% a month). What does that mean? Well, if you’re home was listed at the beginning of 2011 for $250k then by December 2011 the home would be selling for $220k, a $30k decrease. Advice: Price aggressively to avoid market time and save money that will be lost in depreciation and house payments (money that will never be recaptured).
In Conclusion
2012 marks the beginning of stabilization year and at which the rate homes depreciate will be less and less. The bottom of the real estate market is upon us making it a great time to buy a home. In the previous depreciation example. The same home price at $250k experiences half the rate of decline of 2011 then that $250k will be selling for $235 at the end of 2012. If the time is right for you and your family to stop paying rent then lets talk about buying.
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