Market Update for September 2016

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Housing market still strong, but some see signs of rebalancing.

September was an interesting month for a few different reasons there was a modest increase in the number of new listings and a slowing pace of sales and prices. The good news is that all of this points towards a market that is slowly beginning to rebalance itself. Median sales prices in SnoCo increased nearly 9 percent from a year ago to $377,000.

It is still a sellers market where well-priced, well-conditioned homes continue to command attention and draw offers in record time. In Snohomish county, supply remained below two months worth of inventory (6 months is considered a balanced market).

Buyers are getting antsy to make a move before interest rates rise. The looming prospect of interest rate hikes is fueling buyer interest and prompting many buyers to take the plunge now rather than wait for a reset in prices.

DID YOU KNOW? A 1% change in interest rates equates to a $200+ increase in monthly payments on a $400,000 home and more than $160 a month on a $275,000 home. That means property values would have to decrease by over 12% to balance an interest rate hike, which experts don’t see happening any time soon.

September began to show the slowdown of new listings. We have one month until November when new listings coming on the market drop by 50 percent on a monthly basis compared to spring and summer months, with the decrease typically lasting until the end of February. The best opportunity for homebuyers to find a home will be in the next 30 days!