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This seems to be a dominant theme these days in many of the written and televised news stories lately. But is it true? As a savvy businessperson, you should be aware of where these statistics are really coming from. Are they nation wide or local? The greater Seattle area real estate market is not following the national trends. At the risk of being redundant – let me say it again. The greater Seattle area real estate market is not following the national trends! I just read an article that stated that home values have dropped to the lowest point in 35 years. Not here. The market in the Seattle area is actually experiencing a good stability, with home values still on the rise. Are values rising at the same phenomenal rates as in previous years? No, but they are certainly not falling, either. The same article also quoted some statistics that back what I am saying. “…The rise in sales last month was led by a 23.9 percent jump in the West. Sales were also up 6.9 percent in the South. However, sales fell by 34.5 percent in the Northeast and were down 6.3 percent in the Midwest...” Remember, bad news sells, so be an educated reader!

 

Is the King and Snohomish County real estate market really as bad as they say?

There have been all kinds of reports, articles, and opinions on the change in our local real estate market. You’ve probably heard everything from “the bubble has popped”, “we’ve been saying this was going to happen”, “home values are dropping fast”, “market times are increasing”, “we’re seeing more inventory on the market” and so on. Here’s my take – from a hands-on perspective – on what I see going on in our local real estate market.

The changes we are seeing are necessary to keep the real estate market healthy in the long run. Have there been longer market times? Yes, in certain areas and price ranges. How about price reductions? Yes, on my 24 hour watch for Snohomish County, there have consistently been a greater number of price reductions lately than in past months. Have home values dropped? Not in my opinion – however – there has been a slow down in appreciation, which in turn often requires a seller to lower their price. With these changes, I see homes becoming more affordable for first-time home buyers, especially with interest rate hikes cooling off. When more first-time homes are sold, in creates spin-off in the second-home market, which in turn helps the third- and fourth-homes to sell. So are we truly experiencing a bad real estate market? No, we are experiencing a well-needed market correction for greater health in the long run!

Snohomish County Statistics Comparison	September	August	July	June
Residential Home Sales	907	1,026	934	1,200
Residential Home Pending Sales	1,670*	1,780	2,024	2,084
Active Residential Listings	3,546	3,218	3,095	2,888

*769 went pending in the month of August

Yes, the market has “softened”. The market times have increased, inventory is rising, and prices of active listings have been dropping. What does all this mean? We are starting to experience a more “normal” market in Snohomish County. The real estate boom has lasted for well over ten years with great appreciation, and for the market to stay healthy, it is self-correcting. Typically the next few months are slower, so let’s see how we do. I will keep you informed! The saturation rate is now above 2 months of inventory.

Current interest rate for a 30-year fixed with no points is around or below 6.25%.