January 2022 Snohomish County Housing Report
SNOHOMISH COUNTY HOUSING MARKET FORECAST
HOME PRICES, MARKET TRENDS, GRAPHS VIDEO AND INFOGRAPHICS
We Discuss The New Year Housing Kick-Off For Snohomish County Housing Market January 2022
This article will be about the current and future state of the Snohomish County housing market.
We’ll start with my 60 second video pointing out the 3 key indicators and how they affect the market.
Next take a look at an infographic and some quick stats we think are important, then we’ll dive into what story the statistics are telling us.
Next we will hear from the 24th most influential person in real estate, Lennox Scott and what he sees happing in the Snohomish County market.
We will do a short breakdown on Sales Activity, Days on Market, Price, Interest Rates, Timing and Job and Population Growth. A complete list of the MLS Infospark stats for Snohomish County.
Lastly, don't forget to check out the newest Snohomish County homes for sale.
TABLE OF CONTENTS
- Average Sales Price INCREASED by $35K ($738K)
- Pending Sales DECREASED to 784
- New Listings DECREASED to 699
- Homes For Sale DECREASED to 455 (lowest total in over 40 years)
- % Sold Price/List Price INCREASED to 104%
- Interest Rates INCREASED to an Unbelievable 3.29%
- Home Inventory INCREASED to .3 Months of Supply
Every month we gather all the facts, data and statistics about the Snohomish County Housing Market and share them with you. We will discuss the 3 major factors in determining the strength of the market.
- Percentage of Homes That Go Pending In First 30 Days
- Interest Rates
The data tells a story about the current state of our local residential real estate market.
What this story tells me is…
We are back to our seasonal norms as far as listings are concerned and we are still at our post pandemic level of buyer interest in Snohomish County.
What we mean is that we traditionally see less listings put on the market during the winter months, like we saw in December with only 496 new listings coming on the market. Compare this to 1,822 new listings in June. We traditionally also see fewer buyers in the market during the winter months as people travel, adapt to school being out and avoid being out in the weather.
"Compared to other past winter seasons, this winter season’s sales activity will be stronger,” agrees Lawrence Yun, chief economist at the National Association of Realtors®. “This winter, there will be more sales compared to pre-pandemic winters going back all the way to 2006.”
The combination of unbelievable interest rates, a strong job market and a large increase in both home equity and assets over the last couple of years has created what we call a backlog of buyers. This is evidenced by the .3 months of housing inventory or we call an extreme shortage.
There are other factors at work such as the astronomically high rents in the Seattle area.
According to ApartmentList.com Snohomish County median two-bedroom rent for an apartment is $2,501 month. Which equates to approximately a $625K home with 20% down on a 30 year fixed 3.29% interest rate loan.
The Bureau of Labor Statistics recently reported the US inflation rate rose to 6.8% the highest it has been since 1982. The best hedge for inflation is real estate. As we are seeing public figures like Bill Gates and Jeff Bezos buy real estate at an extraordinary rate.
As we have been talking about for a few months Seattle has the 2nd highest percentage of tech workers in the country. Tech jobs bring people in from all over the world and tend to be come with an above average salary. So what do tons of new people with above average salaries need when they get to Seattle, a place to live.
When you add the large number of high income tech workers with the unbelievable low interest rates and the desire for people to move into larger homes that accommodate all the at home activities that people have gotten used to it is easy to see how we have a backlog of buyers.
The Mortgage Bankers Association estimates that rates will rise to 4% by the end of 2022.
As the rates creep higher we should see the buying pool thin out. Until that happens the levels of new inventory level out and the levels of new buyers stay above average we should continue to see record low levels of inventory and a uber-frenzied market through March of 2022.
All of the these factors have driven people to the more affordable and wider open space that is available in Snohomish County.
Although WA has essentially opened back up we continue to follow all state mandated safety guidelines and take extra precautions. We are focusing on delivering Virtual Real Estate Services.
Both of the these factors have driven people to the more affordable and more space that is available in Snohomish County.
Read the full report here: https://www.themadronagroup.com/snohomish-county-real-estate-market-trends-monthly/