Back in June of 2011 the tell tell signs of a recovering real estate market where starting to blossom. Inventory was down substantially, buyers where purchasing homes, sellers could feel relief from lienholders and the bank owned properties where flying off the shelf. Now a year and a half later it could be argued the Snohomish County market has fully recovered.
I won’t go as far as to say the local real estate market has recovered, mostly due to relatively high unemployment rate, but there is no doubt that sellers have to be loving these last few months. Homes have been flying off the shelf with many situations being multiple offers with escalation clauses. Ask a local real estate broker and they will tell you but where is the proof behind the pudding?
Snohomish County Closed Units and Sales Price Increase
When comparing October 2011 to October 2012 there have been the following increases:
- Sold Units Increased 10.7%.
- Average Sales Price Increased 8.7%.
- Median Sales Price Increased 10.0%.
The only decrease in the Oct-to-Oct comparison was Days on Market which declined by 18.2%
When comparing October 2011 to October 2012 Y-T-D numbers there have been the following increases:
- Sold Units Increased 15.5%.
- Average Sales Price Increased 3.9%.
- Median Sales Price Increased 6.5%.
The only decrease in the October Y-T-D comparison was Days on Market which declined by 9.8%
All positive signs in a recovering market; however, I am still a fan of wanting to see a stable market without huge swings.
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Snohomish County Housing Inventory Continues to Decline
In what is becoming repetitive news, the housing inventory continues to break new ground below the recent norms. I’ve seen conflicting reports – which vary from 1.73 to 2.1 months of inventory – of what the true Ocotber numbers are. Even so, inventory continues to shrink which aids in the recovery as well as the recent surge in home prices. So if you’re thinking of selling your home why wait? The market is hot.
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Average Days on Market for Under Contract Homes
Not a topic I’ve touched on much but I think it is important to note that in December 2011 the lenders loosed lending requirements in an effort to make it easier to purchase. Now 11 months later we are seeing a flip in that thinking and it can be seen in August 2012′s low with a steady increase in days to close. From professional experience I can vouch for the increase in average days on market homes due to tighter lending requirements.
Today, I had lunch with a few local lenders and they mentioned how underwriting wants EVERYTHING documented, and by EVERYTHING, they meant any checking/saving account deposit over $300. Wonder why they are getting so tight? Investors don’t want to have absorb the level of REO properties they once had. Investors what highly qualified buyers so think about that when it comes to applying and obtaining a loan.
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Closing Thoughts
The new year will bring a more competitive real estate landscape and it will continue till banks release more REO inventory or Joe & Jane Seller decide to make that move. Purchasing will become so fierce it may just turn people off from buying and they will just stick to renting. Yet, if Joe & Jane seller decide to sell then it will be a frenzy to purchase their home – a seller’s market.
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