Quick Market Update for May and Current Interest Rates

The May housing market was not just hot, it was frenzy hot. The month of May had an increase in new homes listed for sale but just as many buyers made offers on homes during the month to keep inventory depleted.

Low housing inventory and low interest rates are still putting upward pressure on home prices. Given the huge pent-up demand, the seller's market continues. This means prices are rising higher than normal- which means todays buyers will be happy they purchased when they did.

Eighty percent of homes coming on the market in King and Snohomish counties are selling within the first 30 days. Many actually sell within the first week. A healthy/balanced market would have 30 percent selling in the first 30 days.

Successful buyers are working closely with their brokers. Here are some suggestions to prospective buyers as you start your search for scare inventory:

  • Consider areas with potential for future growth, such as areas with great transit services, and areas that have good public schools.
  • While competition can be scary, waiting on the sidelines to buy will likely lead to increasing rental costs, so why not make a real estate investment purchase now and have some hedge against future inflation.
  • Relationships are paramount in this market. If youÂ’re looking for a home, make sure your broker knows your story and can convey it in a compelling way.
  • Buyers must carefully study the market so they can make decisive but smart offers when new listings arrive on the market. With the robust activity, success for buyers means making an offer that stands above the competition.

  • Brokers do not see an easing in the inventory crunch for some time to come. Even if the Fed raises interest rates, we believes shortages will persist because of the backlog of buyers.

    The median home price in May for Snohomish County was $367,250.

    As always, email or call me with any real estate questions. If anyone you know needs to buy or sell a home pass on my information. I will provide them with the same excellent service I provide you.

    All my best and Happy Sunshine :)