Is the Snohomish housing market crashing? No, but there is a shift occurring. As always, 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 October market report for Snohomish County is out and there are some things we want to go over that affect both buyers and sellers.
Let’s take a quick look at the October data for Snohomish County:
· Average home price is up 11% from $462,486 in 2017 to $513,035 this year.
· The number of new listings increased 5% from 1,054 last year to 1,107 this year.
· The average days on the market increased by 15%, from 26 in 2017 to 30 2018.
· The months inventory supply increased from 1.3 to 2.2, a 69% increase.
· The number of homes (inventory level) for sale increased 52% from 1,376 to 2,102.
What it means for sellers
If you are a seller you can still sell your home, it just may take a little longer. It won’t sell in 3 days, but 30 days is still very good. The increase in inventory level means there is a lot more competition. So, it remains important to price your home right the first time. Prices need to be based on comps and not what you think or hope you can get for the home.
New listings are only up 5% but the inventory level is up 52%, meaning there are a lot of stale listings on the market. These are homes that are having trouble selling and could be the result of being priced incorrectly. Sellers need to remember that the home is not a lottery ticket and a home priced too high will not sell in today’s market.
What it means for buyers
If you are buyer, you have a lot more options. In looking at the inventory levels, they are increasing. This means you can look at a lot more homes before making the decision to purchase. Also, homes are staying listed for longer, which gives you more time in your decision-making process.
The market may still not be on your side, but things are shifting in the buyer’s direction.
The real estate market is still strong
The market still heavily favors the seller. The big indicators are the continued increase in home values and the months of inventory supply still under 6 months. As we say regularly, 6 months of inventory indicates a neutral market, anything more would mean there is excess inventory and would indicate a buyers’ market. The inventory is creeping up, the eye popping 69% increase may have startled some, but it still has a way to go before reaching neutral.
Buyers and sellers will see home prices begin to stabilize. With the average price increasing at the same time inventory levels are going up, we will begin to see the change in value drop below the year after year double digit increase. The prices will continue to rise but at a slower rate, more than likely in the 3% range, as more inventory hits the market.