In reflection of June 2011′s market statistics and analyzing how my client’s transaction have gone this summer, the statistics haven’t lied. It has been a seller’s market throughout the summer months and the most unusual in recent history – previous years have been highly in favor of home buyers. Keep in mind that a seller’s market doesn’t always mean increasing property values and can be cause by lack of housing inventory and increased demand.
Snohomish County Housing Inventory
In June 2011, inventory levels were the lowest since April 2010 and those inventory levels have continued to decline to a jaw dropping 4.3 months. The declining numbers are only going to fuel the seller’s market more but we could see a rise inventory as sales weaken towards the end of 2011. This summer, my clients had to experience competing offers, submit backup offers, and grieve as they lost a home(s) to better or an earlier accepted offer – which hasn’t been common since the market decline of 2007.
Snohomish County Listing to Sales Price Ratio
This is probably my favorite chart because it really shows what is happening is the various pricing points. In the $120,000 – $160,000 price range you’ll notice that homes are selling for 103% of list price. Why is that? Homes in this price range tend to be priced very competitive against the competition and sometimes come with new carpet/paint to help them sell even faster. These homes also tend to fit the pricing point for investors where investment properties can instantly cash flow. If you’re looking for a home in this price range – like many of my clients are – then you have to be very conscious of your offer and ask yourself, “am I willing to loose this home because I feel the need too negotiate?”. Investors are your competition, not other owner occupied purchasers.
Snohomish County 2 Median Home Prices
Home’s For Sale’s prices are down 19.9% since August 2009. With that said, the median For Sale home prices have increased steadily since March 2011. Since its the summer months – Washington’s peak real estate season – people may have prices their homes higher due to the lack of inventory. Not always a smart move especially when looking at Average Days on Market. Looking the homes that SOLD, the median prices for August 2011 is $239,000, matching July, and the SOLD prices still show a steady decline since July 2010. Snohomish County’s home prices are still softening; just at a slower and slower rate.
Average Days on Market
There hasn’t been any major fluctuations in the average days on market for Snohomish County homes. Homes for sale, on average, accumulate approximately 80 days on market before they’re sold – recorded at the County court house.
In Conclusion
If you’re planning to sell your home in the near future think about:
1. What is your level of motivation?
2. Do plan to price to sell?
3. How long are you will to stay on the market?
One thing I think about is; if pricing lower today yields a better result than in the near future then why not list for a 30 day price? That’s what banks do. In a continuing softening real estate market, continuous days on market just makes a home less and less valuable which in turns yields a lower net amount for the owner.
Lender REOs remain one of the favourite strategies for the late-night infomercial gurus, but the reality is that the lenders are neither foolish nor benevolent. Although these nonperforming loans are a negative on their balance sheet, they’re not going to sell a property below its market value just to get it off their books.