When meeting new people or spending time with friends the question that always arises is “how’s the real estate market?” and my response is “quite good”. With inventory levels still at record lows, for the moment, and with banks holding back a lot of inventory its allowed some stability to take hold. Prices are not decreasing at rates seen a few years ago, good news for sellers, and according to the NWMLS statistics the median home price in Snohomish County for November 2011 is only down 6.3% compared to November 2010. Seller’s are still taking a hit every month their home is on the market yet the price softening has made it affordable to own again.
Last month, clients closed on a Marysville home for $152,000 that was move in ready, 3 bedrooms, 2 bathroom, on .22 acres and almost 1,400 sq/ft. In 2007, that would have been $260 – $280,000. The buyers are extremely happy with their purchase because when they move, due to new orders, the home can then turn positive cash flow as a rental.
Brushing up on October 2011′s statistics the big change I noticed is which price range homes are selling for more than listed price.
Snohomish County Market Overview
In home prices ranging from $500k up to $900k homes sold for more than asking price. Really? Yep. If we look home above $600k there are very few homes sold and the reasoning is 1) there are very few buyers in that price range and 2) inventory levels are at record lows so buyers are competing for homes in those price ranges. It should be noted that the homes in these prices may have had multiple price reduction before obtaining a higher than list sales price.
Snohomish County Days on Market
Nothing Earth shattering to report here just that there has been a slight decrease to a home’s days on market, from 83 – 81 days on market. Homes sold quicker in a holiday season? Interesting.
Snohomish County Supply & Demand
Reviewing the 2 year trend it is no shocker that there is low inventory levels since they have been previously discussed yet the 15.2% decrease is fairly substantial. That equates to roughly 1,500 less homes than in November 2009. The 2 year trend for Under Contract is up an astounding amount of 42.5% with sold properties being up 11.9%. Good sign for the real estate market and could provide early evidence of the market stabilizing at the bottom.
Another view minus the current Homes for Sale.
What it Means for Buyers & Sellers
Buyers: In December there will be less inventory to shop through and probably will continue through January. There are many great deals out there – the home mentioned in the 2nd paragraph was on the market 24hrs before my clients submitted their offer.
Sellers: It is an excellent time to sell your home because there will be less competition due to the lack of inventory. Couple with still a declining market will end up saving more money in the long run than waiting till spring.