The Novak Team is committed to providing up to date information affecting the real estate market as we assist you in making the best decision possible. The September market report for Snohomish County is out and there are some things we want to go over that affects both buyers and sellers.
Let’s take a quick look at the September numbers:
· Average home price is up 11% from $458,051 in 2017 to $508,917 this year.
· The number of new listings increased 12% from 1,192 last year to 1,344 this year.
· The average days on the market increased by 22%, from 22 to 27 in 2018.
· The months inventory supply remained constant at 1.3
· The number of homes for sale increased 36% from 1,667 to 2,283
What it means for sellers
The increase in days on market means homes need to be priced right the first time. Overpricing directly correlates to the inability to sell the home quickly. Sellers need to base the price on comps, not what they hope to net from the sale.
The average price of homes is up nearly $50,000, which is massive at 11%. A more normal price increase is in the 3% range. The increase is leading to issues in affordability and the home prices cannot increase too much more unless incomes increase along with it. The affordability issue will slow down home sales, as we can see with the increase in days on market. Just remember, price the home correctly the first time.
Another thing that will affect the appreciation is the increase in the number of new listings. The new listing allows for supply to catch up with demand and this will affect the home values. You should expect the percentage increase in home values to slow down in the coming year as the market becomes for saturated with new listing to meet the demand.
Even with the statistics, we are still in an aggressive seller’s market indicated by the low inventory level at 1.3 months supply. A 6 month’s inventory supply would signify a neutral market, as you can see we are quite a bit off that at present
What it means for buyers
The number of new listings increasing is a good sign for buyers. The percent increase is not too high, but it is a shift in the right direction. With the increase in homes to choose from, buyers stand a better chance of winning a home when they put in an offer.
The number of homes for sale has also increased, which is again good news for buyers. They have more options out there. They can look at numerous homes that have what they are looking for instead of just finding the one “perfect” home that leads to a frustrating bidding war.
The real estate market is still strong
To give some perspective, in 2007, just prior to the economic downturn, we had more than 6,000 homes on the market. We currently have a little bit above a third the amount of homes listed today at 2,283.
As we are now in the midst of fall, this is a great season to both buy and sell. For buyers, there is a reduction in competition as a lot of families do not want to move in the beginning of the busy school year. This means there will be less people shopping for and bidding on a home you wish to purchase.
For the seller, Fall is great because most sellers want to put their home on the market during spring. If you wait until spring, there will be a big spike in inventory allowing buyers to look at more homes when shopping around. Instead of looking at one or two homes, buyers may look at ten. Your home will have to stand out a lot more to have a chance at selling.