QUARTERLY REPORTS Q1 2023
We are seeing signs of price stabilization and some growth after the market correction of 2022! Illustrated on the front is the up-down-up trajectory that home prices have experienced over the last year. While we are in the midst of measuring the negative difference from the peak prices of the first half of 2022 to now, we are still up 12 months over 12 months, and most recently prices are up from last month.
The correction in prices was a result of a 3-point increase in interest rates over the second half of 2022. Data shows the market has recalibrated in 2023 which has increased buyer demand as consumers have become more comfortable with the “new normal”. This has caused prices to stabilize and start to grow month-over-month since January. Days on market are shrinking and sale prices are averaging closer to the list prices, and in some cases are escalating over the list price. It has been an eventful past year highlighting the importance of real-time, accurate information to help empower strong decisions. Moves are motivated by life changes, lifestyle goals, and strategic financial planning. If you or someone you know is curious about how the market relates to these needs, please reach out.
QUARTERLY REPORTS Q4 2022
2022 was a transitional year for the real estate market that started off incredibly seller-centric and ended in balance. We started 2022 with interest rates hovering in the low 3%, peaked at 7% in late fall, and ended the year hovering in the mid 6%. This significant jump created a correction in home prices as the cost to finance a home affected affordability. Bear in mind, equity growth over the last 10 years has been plentiful! While prices are off the peak of spring 2022, they are still higher than the year prior overall. 2022 became a more traditional market with interest rates in line with historical averages, more available inventory, and the return of contract contingencies and concessions for buyers. This balance has increased days on market, highlighted the importance of accurate pricing, and made the best-prepared homes shine.
Experts anticipate rates to continue to improve throughout 2023 and buyer demand to grow. Buyers that are looking to enter the market should engage now. Price growth may be flat as we adjust to these norms and then should start to maintain historical annual appreciation rates closer to 2-5% year-over-year after years of double-digit annual growth. If you are curious about how the market affects your housing goals, please reach out. It is my goal to help keep my clients informed and empower strong decisions.
QUARTERLY REPORTS Q3 2022
The real estate market is adjusting to new environmental factors as we round out 2022. Interest rates have been on an upward trend since the spring and have increased by 2 points since the first of the year. This has put downward pressure on the peak prices we saw in the spring as we return to more normalized, historical rates. We must keep in perspective the strong year-over-year price gains as these environmental factors settle out. Additionally, we are sitting on top of 10 years of price growth resulting in over 50% of homeowners in WA state with at least 50% home equity.
This move towards balance in the market has increased market times and highlighted the importance of scrutinized pricing and detailed planning. It has also provided more opportunities for buyers in regards to selection, price, and contract terms. This market requires keen analytical skills, strategic negotiations, creativity, and a higher level of customer care.
I welcome the balance and normalization and look forward to helping my clients make moves to match their needs in life! Please reach out if you are curious about how the market relates to your goals or know someone that needs my help.
Quarterly Reports: Q3 North Snohomish
Q3: July 1 – September 30, 2018
NORTH SNOHOMISH COUNTY: In September, the average days on market landed at 29 days and the original list-to-sale price ratio at 98%. Since May, inventory growth has been noticeable, and has given buyers more options. This has led to more negotiations and fewer bidding wars, which is tempering month-over-month price growth to a more sustainable level.
Back in May, the average days on market was 22 days and the original list-to-sale price ratio 101%; but months of inventory based on pending sales was 1 month compared to 2.3 months currently. Year-over-year, prices are up 11%, still well above the historical norm of 3%-5% year-over-year gains—but note that the majority of this growth happened during the spring, due to constricted inventory levels.
Supply has increased, creating more options for buyers and helping to buffer affordability issues. Many sellers are deciding to make moves and cash in on the equity gained over the last six years. An average original list-to-sale price ratio of 98% is a positive return, yet illustrates a softening in the market after some very extreme times. With 11% price growth over the last 12-months in a seller’s favor, the increase in selection has led to more nimble moves from one house to another. Where sellers need to be careful is anticipating the month-over-month price growth we saw prior to the shift in inventory. Prospective buyers would be smart to take advantage of today’s historically low interest rates and the added inventory selection.
This is only a snapshot of the trends in north Snohomish County; please contact me if you would like further explanation of how the latest trends relate to you.