Snohomish County Real Estate Market Update | June 2022

Hey y’all, Zach McDonald, your real estate agent with Real Property Associates, and this is my Snohomish County real Estate market update for June, 2022. Well, you probably expected to hear this, but the Snohomish County real estate market is not as hot as it was back in May, 2021. Now it’s probably not coming as a surprise, as I mentioned because well last year was the hottest our real estate market’s ever been and really the hottest probably the country’s ever been. If we were to look back over history and as we’re seeing some of these numbers here, I just want you to know that I don’t think the sky’s falling. I really don’t. But I want to share some of these numbers and talk through them with you. And we’re gonna spend a little bit more time and focus on maybe why, right? The why behind the what a little bit, and I talked a little bit more about that and share some more thoughts in my Seattle market update.

So if you want to see and hear some of those thoughts a little bit more detailed, I’ll be linking it up down below here. And if you, if you want, you can subscribe to the channel, right? And hear all of these different updates every month. But as we jump into the Hoish County stats, we saw a 26.2% jump in new listings. So we jumped from last year 1,284 new listings to 1,620. And I think one of the things I’m watching is how many new listings are we having, right? Because it sounds like a lot. And then how many houses are coming off the market? So we had pending sales 1,216, which was down 6.5%. So we saw more new listings. You were pending sales. So what happens is we can look down and we can see inventory of homes for sale up five. Wow. What we can do, what we can do is we can look down at our inventory of homes for sale and we can see 105.4% jump Inno County massive jump in homes for sale.

And that’s also doubling the inventory. So the supply number of 0.5 months to one month of supply in s Hummish County. So pretty significant jump if you look at percentages, right? And we see those numbers double, but I want to remind you that last year was like the lowest we’ve ever been. So if we look back historically, and I think these numbers are helpful, we saw new listings, I mentioned this year, 1,620 and I already shared the 2021 numbers. If we skip 2020, cuz 2020 was weird. 2019, 1,619, which is one less, um, 1,639, which is a little bit more. And in 2017, 1,577. So really we’re just kind of more in a normal spot. Um, versus last year being super, super low for the new listings in May. Now the pending sales in this last year, 1,216 pending sales. But if we look back at other years, 2021, 1,301, which is quite a bit more than normal, but in 2019, 1,152, so less 2018, 1,184 less.

And also in 2017, 1,241. So a little bit more, uh, than what we saw this year. Um, and that’s when we were talking about this market being the hottest place in the whole country to buy a house, but homes for sale. All right, so the numbers of homes for sale, I mentioned 105.4% up year over year. That’s a lot when we look at the percentages. But the number 1029 isn’t as shocking if we look back at some historical numbers. So last year was crazy. 501 houses for sale, again, super low. But in 2019, again, skipping the 2020 year because it was a little bit of an anomaly, 1,682, oh, that’s quite a bit more homes for sale in 2018. 1,342, huh? Still quite a bit more houses. And if we look at 2017, 1,266, which is still quite a bit more houses. So historically speaking, we’re really just seeing a little bit more of a normal amount of inventory.

And when I say that, still super, super low supply numbers based on the amount of buyers, but it’s more historically accurate to where we’ve been in the Seattle area with last year, again, being a little bit of an anomaly. So we still have super low inventory and I’ll share that with you right now. If we look at the inventory numbers, last year, 0.5 months of supply jumped up to one month of supply here in stylish county. But if we look back at other years, 2019, 1.8 months of supply, 1.3 months in 2018, and in 2017, 1.3 months of supply. And again, we were talking about this housing market in that 2018 and 2017 May as being the hottest places to buy a house in the whole country. So where are we at right now? We’re still one of the hottest places to buy a house in the whole entire country, but it’s not quite as crazy as it was last year, but it’s still not an easy place to buy a house.

But with that being said, with that being said, some houses are sitting on the market, some houses are si and there’s price reductions. Can you believe that? We’ve had price reductions in Snohomish County? So I don’t think I could even have said that last year. Maybe I could have. Uh, but very few. If you look at some new listings over the last week, these are residential listings, 358, there were 241 price reductions in Snohomish County. That’s a lot. That’s a lot. So those would’ve been houses that were on the market maybe a week or two. And now they’re dropping their price, trying to attract some new attention and compete with some of the new listings. Listings pending 318. So we’re still seeing a lot of listings go pending. This is, again, just over the last week, listings sold 300. So it’s not like houses are just sitting and not selling, but we are seeing houses getting price reductions.

And this time of year what happens is you have this frenzy. And what happened this year specifically is you add this frenzy of multiple offers, 8%, 10% over asking price, and everybody is continuing to push those prices up. But at some point you get to that spot during the year and maybe even in a market cycle where you find that max, that people are willing to pay or a couple people are willing to pay, but not everybody’s willing to pay this. And so once you start to price houses up here instead of down here, that’s when you start to see those price reductions. But really tactically, if you’re a seller and your neighbors sell listed for here and got here, and then your next neighbor listed for here and got here, and then your next neighbor listed for here and got here, you’d probably wanna list your house in this range and not risk losing that when the market’s slowing down a little bit.

And so every year you start to see that tension and that battle of, well, I’d like to just get one really good offer right in here and not take the risk of just getting one offer here. And so there’s that tactical decision, right? Do I price on the higher side of the value range or the low? And if you’re a gambling person, you can always price on that low side. You are gonna, you’re not, you can’t underprice your house. But when the market’s slowing down a little bit, sometimes you get one offer and you’re like, man, I wish I would’ve tested that higher price. Maybe I would’ve got one offer at that higher price. So I don’t think most people wanna leave money on the table and it’s easy for an agent just to list a house for low. But to really think strategically in Snohomish County and say, okay, well we’re heading into the summer, the market’s been really hot, it is slowing down a little bit.

I, I don’t think as a seller, I wanna give money away and I certainly wouldn’t be pricing my house at a crazy low price and just hoping that I’m gonna get three or four offers that are gonna push that price up. So I think that’s why you see those price reductions, right? You’re pricing higher and you’re trying to find what the mass is willing to pay versus just that one outlier. And it’s easy to get a house sold quick. And it’s nice when everybody’s in that frenzy if you’re listing houses. But as a seller, you don’t want to leave money on the table either. Speaking of price reductions, we’ve got a listing right now and we haven’t reduced the price. We may have to, it’s a condo in Bothel and we’ll put it up on the screen here. It’s a beautiful condo. And in this complex, we had a house just like it that sold for 5 67 closed couple weeks back, which meant it was listed back in April. But even just putting a another unit on the market just like it again, great condition, freshly painted, we’re still, we’re sitting on the market at five 50,

So they priced it 5 45 and then ended up getting 5 67 and we’re at five 50 no offers. So I think as you’re looking at the market, that’s just a good story to share. What’s changing, right? You don’t have quite as much competition. Again, we’re priced on the higher side of the value range, but really not much more than they even listed for. We’re just hoping to get one good offer, but even now we don’t see that everybody’s trying to pay that price. So historically, even earlier on in the year, these same units we’re selling for 4 75 to 500. And do I think it’s gonna sell for that? No, I think that’s probably a little low. Do I think it’s gonna sell for that? Probably not. I think that’s probably low, but is a price reduction in order maybe? I think that’s likely as we wrap up the Snohomish County real estate market update for this month, instead of going into and talking about maybe highlighting a specific area.

As we do that in most of these videos, I just wanna wrap it up for you. I know we win a little bit more into why the market’s doing what it’s doing and what’s happening a little bit more of the application than we typically do. Um, so I’m gonna wrap it up here and end with the thought here about, um, the price reductions and the market shifting a little bit. But again, I just wanna reiterate, I really don’t think the sky is falling. And I know interest rates are a little bit higher and they’re actually down a little bit over the last few weeks and over the past month, I shared in my Seattle update. I think there’s some pretty good thoughts there about why I think that we’re not going to see a repeat of 2008 to 12 here in the Seattle area and really across the country, but most specifically here.

And I think a lot of it comes down to just not enough houses being built over the past decade plus. And a lot of new millennial buyers in the market, so the largest buyer demographic ever, and not enough houses being built for the past 10 years. And we all know you don’t just solve that problem all of a sudden. So yes, there’s less demand and it’s not a ton less, but there is less demand. Interest rates are higher, but what’s going to happen is interest rates are going to come down. And when they do, we’re gonna start to see those housing prices go up. Again, thanks so much for watching this month’s market update. If you have questions about your situation buying or selling a house in Snohomish County, I’d love to be a resource for you. And I just wanna say thank you for your attention and for continuing to follow these updates. And again, if there’s anything I can ever do for you, please feel free to reach out.