Properties continue to sell at an unusually fast pace. We are still seeing historic lows in inventory. Both King and Snohomish counties have less than one month of home supply, where a six month supply would be considered a balanced market.
If home buyers were hoping that January would start to bring more balance to the housing market, they’re going to be sorely disappointed. The number of homes for sale remains at record lows, and the growth in pending sales tells us that sellers are still firmly in the driver’s seat. Five years ago buyers could choose from over 5000 single family homes on the market compared to only about 1500 last month.
Looking at the big picture, It doesn’t seem there will be much relief in the near future with the combination of new jobs, a shortage of new homes, and a reluctance of sellers to list their home for fear of not being able to find their next one.
Zooming in, we are starting to see typical seasonal and beginning of the year adjustments. We’re seeing momentary bubbles of increased inventory for buyers currently in the market. As the days start getting longer the future will look brighter for the backlog of buyers waiting to find a home.
Buyers who are properly positioned to make quick decisions, and who have the proper negotiation tactics and guidance are finding success in this high velocity market. Given the imbalance in supply and demand, prices continue to rise. Homes in the Snohomish county area are seeing increase of about 9 to 10% above last years prices. This is larger than King county which suggests buyers are migrating north in order to find more affordable housing. We’re seeing the frenzy change to a fanatical desire to own a home as buyers scramble to beat increasing interest rates. MLS director Frank Wilsone expects the Feds to increase rates two more times between now and April.
If you are curious about the current market value of your house, reach out to me and I am happy to give you a free home value evaluation. I have continued to have success in recent months helping first-time home buyers find their home. In this sellers market it really pays to work with an experienced broker. If you or anyone you know wants to buy a home, send them my way. If you want to sell your home, I have a list of clients wanting to buy in your area!