Community Info • October 15, 2022

South Snohomish County Market Report – Q3 2022

by Travis DeFries

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.

Community Info • September 24, 2022

Pumpkin Patches & Fall Activities

by Travis DeFries

Fall has arrived in the PNW and it’s time for cool mornings, warm beverages, beautiful colors, hay rides and pumpkin picking. Head out to a local farm for fresh produce and family-friendly activities.

This is by no means an exhaustive list… there so many farms in our area, especially Snohomish County. Leave a comment with your favorite if it’s not on the list!

*Please always check websites for confirmation of activities, hours, possible closures, and any other details.

SOUTH SNOHOMISH COUNTY

Biringer’s Black Crow Pumpkins & Corn Maze – Arlington

Pumpkin patch and corn maze. Local cider, honey and produce. Fall fun! Pet-friendly.

Bob’s Corn & Pumpkin Farm – Snohomish

Tractor rides, pumpkin patch, corn maze, night maze, bonfire rentals, concessions. Fresh produce at the Country Store and lunch and dinner are available on the weekend at the Country Kitchen.

Carleton Farm – Lake Stevens

No frills pumpkin patch, animals, market, concessions, and free parking are all open to the public at no charge.

Craven Farm – Snohomish

Corn maze, hayride, pumpkin patch, fire pit rentals, concessions, autumn décor.

Legacy Farm – Monroe

Pumpkin patch, kids corn maze, covered hay ride, barrel train, kid zone playground, animals, carnival games, papa’s fire truck, family photo area, festive food & drink.

The Farm at Swans Trail – Snohomish

Pumpkin Patches, fresh-pressed cider, corn maze, concessions. Animals, kids play area, live duck races, pigs show, hay rides, cow train, indoor slides, tractor pull, zip lines and more.

Fairbank Animal Farm & Pumpkin Patch – Edmonds

Pumpkin patch, farm animals, toy duck races, hay tunnel and more.

Stocker Farms – Snohomish

Pumpkin patch, corn maze, family photo areas, concessions, kids play areas, hay ride, bubble barn, duck races, tractor slide, gaga ball, steer & pig roping, and more. New, Saturday nights fireworks extravaganza.

Thomas Family Farm – Snohomish

Pumpkin patch, corn maze, kids fun park, 5-hole putt putt, heated & covered beer garden, escape rooms, haunted house, monster truck rides and more. Night activities: zombie paintball, haunted trail, haunted house.

KING COUNTY

Carpinito Brothers – Kent

Pumpkin patch, corn maze, kids activities, farm animals, hay maze, goat walk. No pets allowed.

Fall City Farms – Fall City

Pumpkin patch, farm animals, concessions. No pets allowed.

Jubilee Farm – Carnation

Pumpkin patch, hay rides, concessions, farm market, and more. Free admission. No pets allowed.

Oxbow Farm – Carnation

Oxtober celebration 10/15, 16, 22, 23: pumpkins, living playground, Oxboat ride on pumpkin river, farm-fresh produce. Registration on website.

Remlinger Farms – Carnation

Pumpkin patch, apple cannon, pony rides, mechanical rides, farm animals, giant swing, play area, pioneer village, concessions and more.

Serres Farm – Redmond

Pumpkin patch, animal train, corn maze.

Thomasson Family Farm – Enumclaw

Pumpkin patch, corn maze, laser tag, farm animals, play areas, apple slingshot, tetherball, giant Jenga, giant Connect 4, photo ops and more.

Yakima Fruit Market – Bothell

Farm stand with lots of local pumpkins, apples, and farm-fresh produce. Corn stalks, hay bales and fall décor.

Monthly Newletter • September 23, 2022

Real Estate Newsletter – 09/22/2022

by Travis DeFries

As we experience the fall equinox, when the length of a day is equal to the night, we are also experiencing a similar balance in the real estate market. We define a balanced market to have 2-4 months of available inventory. This means that if no new homes came to market, we would be sold out of homes in that amount of time. Month-to-date in September, we have 2.1 months of inventory in King County and 1.7 months in Snohomish County, after having 1.6 months in King and 1.5 months in Snohomish in August. This has been a stark contrast to the spring months when we bottomed out at 0.3 months in both counties in March.How we navigate the changing environment is key! The reasons why people buy and sell real estate is often rooted in life changes. Yes, real estate is an investment and often leads to financial gain, but moves are more likely motivated by life circumstances that create a desired change in housing. So how do you find success in a market approaching or already in balance, versus an extreme seller’s market?First, market preparation should not be taken lightly. How a home is presented to the market is instrumental in setting it apart from the increase in the competition (more inventory), so it stands out and sells quicker. As a part of my process (in all markets), I walk through the property with my sellers and we devise a plan to improve, clean, and sometimes update the property so it shows as favorably as possible in order to attract the largest pool of buyers possible. With more selection, this preparation is paramount to getting the highest return and shortest market time.I will often refer to my preferred list of contractors to help take on our prep list and I can also consult on what items are of the highest priority to improve, so we do not cut into profit. Windermere even has a no-upfront, low-cost loan program, The Windermere Ready Program that allows for quick and inexpensive access to funds in order to get property preparation done seamlessly.The second key element is pricing. In King County, prices are up 10% complete year-over-year and up 18% in Snohomish County. However, prices are down 10% from the spring 2022 peak in King County and 12% in Snohomish. Price appreciation has started to decelerate (slow down) year-over-year, but we still have above-average price gains when we compare 2021 to 2022. Not to mention, we are sitting on top of a decade of positive price appreciation. The long-term equity growth a seller has is a healthy perspective to set their expectations on rather than holding on to the extreme environment of the spring market that is not returning.

With that said, sellers have amazing gains to enjoy, and not overshooting their price will lead to the most profitable and drama-free outcome. In King County in August, 37% of homes sold at or above the list price, and 34% in Snohomish County; that is 1 in 3 homes! These homes were brought to market with accurate pricing that attracted a buyer pool that understood the value and was motivated to offer. Market time was also shorter. Homes in King and Snohomish Counties that sold in 15 days or less averaged a list-to-sale price ratio of 100% and homes that sold in 15-30 days took close to a 5% hit on list price. When the days on market get longer the hit on list price gets even higher. It is important to get the pricing right in the beginning. Thorough research, properly focused perspective, and clear communication all play into this success.Lastly, negotiations have changed. In the extreme seller’s market, it was all about buyers waiving all their contingencies and a willingness to pay high amounts over the list price to win a home because the selection was low and money was cheap. Now that interest rates have increased, prices have been tempered by the cost of a loan, putting downward pressure on the peak prices from the spring. This is a sign of the market coming into balance. All of these financial factors hinge on one another and are related. We must understand this when we establish a price and head into negotiations. We need to know when to lean into the data and draw a line in the sand on our value, and when to be open and acquiesce to a solution. Having the emotional intelligence to see the big picture and work towards win-win outcomes serves everyone well. This muscle is being rebuilt across the industry; make sure you are aligning with a professional who is well-researched, calm and confident.What has been really positive about this shift is the ability for a buyer to be a bit more nimble with their move, especially if they have a home to sell. Before, there was a stop-gap in the market because if a seller who was a buyer had to sell their home in order to buy, they were fearful that they would not find a place to live and would have to move twice. Now we are seeing home sale contingencies happen, and buyers whose homes are under contract are making offers subject to those successful closings. It has also allowed for less-rushed due diligence, which is much more comfortable and reduces risk.One last element I will add is that market conditions vary from neighborhood to neighborhood and price point to price point. Another element we must be aware of as we move away from the extreme is that we cannot make sweeping statements about the market. Some markets are in balance, some are still a seller’s market, and some are leaning towards the favor of buyers. The detail and care that is required to properly educate our clients are more important than they have been in some time and one that I take great pride in.The answer is often, “it depends” which is followed by a stockpile of research, discernment, and communication in order to formulate a strategic plan and create a successful outcome. It is always my goal to keep my clients well-informed and empower strong decisions. Please reach out if you are curious about the success you can find in our new market. As stated above, life changes often motivate moves, and helping people navigate these huge, life-changing moments is my passion.

Did you know Windermere is the official real estate company of the Seahawks?!The best part of this partnership is our #TackleHomelessness campaign. For every defensive tackle made by the Hawks at their home games throughout the season, The Windermere Foundation donates $100 to Mary’s Place. Our current total is over $200k donated over the last 6 seasons of partnering with the Seahawks. Since 1999, Mary’s Place has helped thousands of women and families move out of homelessness into more stable situations. Across five emergency family shelters in King County, they keep families together, inside, and safe when they have no place else to go, providing resources, housing and employment services, community, and hope.

Monthly Newletter • September 5, 2022

Real Estate Newsletter – 09/01/2022

by Travis DeFries

It has been my goal to report to you accurate, real-time updates on the real estate market as we navigate the shift that started in May 2022. The two factors that have been the biggest contributors to this shift are inflation and interest rates. Inflation caused interest rates to rise by over 2-points over a 5-month period. When rates hit and then crested the 5% mark in mid-April is when we started to see sales slow and create downward pressure on prices.Since mid-April, we saw rates jump another point and crest 6% in late June. This has caused a correction in price appreciation or what is called a deceleration in price growth. While we have come off the peak prices of the Spring of 2022, year-over-year price appreciation is still very strong, and long-term price growth is historical! In Snohomish County, prices are up 19% when you compare the last 12 months of price growth over the previous 12 months of price growth, we like to call this complete year-over-year price appreciation. In King County, prices are up 10%. These percentages are well above average and will end the year still well above the historic complete year-over-year average of 3-5% annually. This is the perfect illustration of a price correction due to market influencers such as inflation and interest rates. Here’s the good news, July inflation numbers were reported at 8.5% which came off the June peak of 9.1% which has caused interest rates to start to stabilize. Rates have come down off the peak in late June and have been hovering in the 5%. This has caused MTD August pending sales to increase over July indicating consumers becoming more comfortable with this new normal. In Snohomish County, pending sales are up 18%, and in King County up 16%. Also bear in mind there is a difference between short-term and long-term mortgage rates. Mortgage rates are dependent on long-term interest rates and home equity lines of credit, car loans and credit cards are dependent on short-term interest rates. There is a lot of talk in the news about rising rates and how they are being used to combat inflation. This has applied more towards short-term rates as the Fed would like consumers to slow their spending that utilizes short-term rates to temper inflation. In fact, the last increase in short-term rates actually caused long-term mortgage rates to lower.Below, you can check out a video released by Matthew Gardener, Windermere’s Chief Economist addressing the rate of inflation, how it relates to interest rates, and where we are headed as we finish out 2022. This video was actually released a few weeks back and it is proven to be spot-on. We are fortunate at Windermere to have Matthew’s guidance. It is always my goal to help keep you well informed and empower strong decisions. Please reach out if you are curious about how today’s market relates to your real estate and financial goals.

Thank you to everyone who donated to our summer food drive! We collected 924 pounds of food and $2,700. Collectively, we’re helping our neighbors in need with over 2,000 meals. The Volunteers of America Western Washington shared with us how grateful they are for this, as the need is high due to the rising costs of groceries.Thank you!

Monthly Newletter • August 11, 2022

Real Estate Newsletter – 08/11/2022

by Travis DeFries

As we continue to examine the shift in the market, we must take a moment to take a deep dive into interest rates. Since the first of the year, long-term interest rates have increased 2.7% from 3.11% on 12/30/21 to the peak of 5.81% on 6/23/22, but have started to level out. On 8/4/22 rates found themselves at 4.99% which provided more opportunities for buyers and helped increase demand. These are the base rates that are released but can shift up based on the loan program or elements in the buyer’s application, like a credit score.

You see, affordability has been a challenge with the incredible price appreciation we have seen over the last two years. The median price is up 34% ($568,000 to $760,000) from July 2020 to July 2022 in Snohomish County and up 24% ($729,000 to $900,000) in King County. Average annual price gains are typically 3-5% making these last two years a time of significant growth. This is on top of 10 straight years of positive price growth. Homeowners are sitting on a ton of equity! These recent extreme price escalations were directly connected to the historically low interest rates that were in the 3-4% starting in the spring of 2019 and lasted until the spring of 2022. To combat inflation the Fed made the move they’ve been talking about for some time and started to raise interest rates. This started to take shape in April, peaked in June, and has now started to stabilize as we head into the dog days of summer. As rates start to normalize it is putting downward pressure on the peak prices. Bear in mind that the average interest rate over the last 30 years is around 7.5% which we are well below. This low-rate environment was also coupled with a scarcity of inventory and now we are starting to see more selection and a shift from a sellers’ market (0-2 months of inventory) to a balanced market (2-4 months of inventory). Buyers often choose their price point based on the monthly payment they will need to sustain throughout the term of their loan, not necessarily the highest price they are qualified for. If you look at the chart below you can easily see what buyers are needing to consider financially and how that would price them out of the higher price points. That has directed the demand to adjust to lower price points in order to provide a monthly payment that is sustainable and affordable. Hence, putting downward pressure on the peak prices we saw in spring 2022 when rates were in the 3-4% and there were only 2 weeks of available inventory in Snohomish and King counties. Now there is 2 months of available inventory for both counties, which is an indicator of a balanced market.

The sky is not falling, we are just adjusting to the new normal of interest rates and getting used to having additional selection and competition. Prices are still up significantly year-over-year and homeowners are sitting on a mound of equity built over the last decade. Prices have come off the peak of April 2022, but are starting to recalibrate in relation to the cost of debt service. We anticipate this correction to level out in the coming months. Experts are predicting rates to simmer in the 5% with the hopes of not entering into the 6% like we saw in June as the volatility of this adjustment was finding its way as a response to inflation.

It is also important to understand that mortgage rates are long-term rates and when you hear in the news that the Fed is going to hike interest rates to combat inflation, that it is often short-term rates they are referring to such as car loans, credit cards, and home equity lines of credit. The point of the short-term rate hikes is to get people to slow their spending and save more to hedge against inflation. In fact, the last short-term rate hike caused long-term mortgage rates to lower. Make sure you are consulting an expert and not just listening to the media. I will continue to keep a close eye on rates, prices, and inventory so my clients are equipped with the most up-to-date information. We must understand all three of these elements are directly connected to each other and they will adjust and find balance. Our local job market is strong, home equity is high, interest rates are still well below the 30-year average, and there is a lot that is motivating the economy. While we may be experiencing a recession, we are not experiencing a dismal housing market. Sales are maintaining at the same level as 2018 and 2019 which were very strong years in real estate, but a bit less than the pandemic-fueled years of 2020 and 2021 that saw a reorganization of our communities due to the work-from-home phenomenon. Real estate has always been a long-term hold investment and also the place you call home. It must be looked at from a financial perspective and a lifestyle one as well. We are starting to see some creative options in the market with rate buy-downs, even seller credits, and some buyers opting for ARMs (adjustable-rate mortgages) in order to get the payment that works for them. Please reach out if you have questions or are curious about how your goals relate to today’s market. It is always my goal to help keep my clients well informed and empower strong decisions.

In honor of Windermere’s 50th anniversary, we’ve set a goal to reach $50 million in total donations to the Windermere Foundation in 2022 for our 50 in 50 Campaign. To reach our goal, we need to raise $4 million in donations this year. So far this year, through the month of July, $2,011,963 in donations has been raised for the Windermere Foundation. Our office is just finishing a Summer Food Drive that will help contribute to this total, but more importantly, will help keep the local food banks stocked. We have partnered with Volunteers of America of Snohomish County and they recently shared with us that their need is high due to the increase in the cost of groceries. We are always looking to direct our giving to areas of high need right in our own backyard. We will continue to support the food banks throughout the year with additional food drives around the holidays. Please let me know if you want to participate and I’ll help make that happen!

Community Info • July 28, 2022

Western Washington Gardner Report – Q2 2022

by Travis DeFries

The following analysis of select counties of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

Regional Economic Overview

The most recent employment data (from May) showed that all but 2,800 of the jobs lost during the pandemic have been recovered. More than eight of the counties contained in this report show employment levels higher than they were before COVID-19 hit. The regional unemployment rate fell to 4.5% from 5.2% in March, with total unemployment back to pre-pandemic levels. For the time being, the local economy appears to be in pretty good shape. Though some are suggesting we are about to enter a recession, I am not seeing it in the numbers given rising employment and solid income growth.

Western Washington Home Sales

❱ In the second quarter of 2022, 23,005 homes sold, representing a drop of 11% from the same period a year ago, but up by a significant 52% from the first quarter of this year.

❱ Sales rose in Grays Harbor County compared to a year ago but fell across the balance of the region. The spring market, however, was very robust, likely due to growing inventory levels and buyers trying to get ahead of rising mortgage rates.

❱ Second quarter growth in listing activity was palpable: 175% more homes were listed than during the first quarter and 61.98% more than a year ago.

❱ Pending sales outpaced listings by a factor of 3:1. This is down from the prior year but only because of the additional supply that came to market.

Western Washington Home Prices

❱ Even in the face of rising mortgage rates, home prices continue to rise at a well-above-average pace, with average prices up 13.3% year over year to $830,941.

❱ I have been watching list prices as they are a leading indicator of the health of the housing market. Thus far, despite rising mortgage rates and inventory levels, sellers remain confident. This is reflected in rising median list prices in all but three counties compared to the previous quarter. They were lower in San Juan, Island, and Jefferson counties.

❱ Prices rose by double digits in all but four counties. Snohomish, Grays Harbor, Mason, and Thurston counties saw significant growth.

❱ List prices and supply are both trending higher, but this has yet to slow price growth significantly. I believe we will see the pace of appreciation start to slow, but not yet.

A map showing the real estate home prices percentage changes for various counties in Western Washington. Different colors correspond to different tiers of percentage change. San Juan County is the only county with a percentage change in the 5% to 7.9% range, Skagit, Lewis, and Cowlitz counties are in the 8% to 10.9% change range, Clallam, Jefferson, Kitsap, and Pierce are in the 11% to 13.9 % change range, King and Whatcom counties are in the 14% to 16.9% change range, and Grays Harbor, Mason, Thurston, and Snohomish counties are in the 17% + range.

Mortgage Rates

Although mortgage rates did drop in June, the quarterly trend was still moving higher. Inflation—the bane of bonds and, therefore, mortgage rates—has yet to slow, which is putting upward pressure on financing costs.

That said, there are some signs that inflation is starting to soften and if this starts to show in upcoming Consumer Price Index numbers then rates will likely find a ceiling. I am hopeful this will be the case at some point in the third quarter, which is reflected in my forecast.

A bar graph showing the mortgage rates from 2020 to the present, as well as Matthew Gardner's forecasted mortgage rates through Q2 2023. He forecasts mortgage rates continuing to climb to 5.9% in Q4 2022, then tapering off to 5.58% in Q1 2023 and 5.53% in Q2 2023.

Western Washington Days on Market

❱ It took an average of 16 days for a home to go pending in the second quarter of the year. This was 2 fewer days than in the same quarter of 2021, and 9 fewer days than in the first quarter.

❱ Snohomish, King, and Pierce counties were, again, the tightest markets in Western Washington, with homes taking an average of between 8 and 10 days to sell. Compared to a year ago, average market time dropped the most in San Juan County, where it took 26 fewer days for a seller to find a buyer.

❱ All but six counties saw average time on market drop from the same period a year ago. The markets where it took longer to sell a home saw the length of time increase only marginally.

❱ Compared to the first quarter of this year, average market time fell across the board. Demand remains very strong.

A bar graph showing the average days on market for homes in various counties in Western Washington for Q2 2022. Snohomish and King counties have the lowest DOM at 8, followed by Thurston and Kitsap at 9, Pierce at 10, Island and Skagit at 12, Whatcom at 14, Mason at 16, Cowlitz at 17, Lewis at 20, Jefferson at 21, Clallam at 24, Grays Harbor at 25, and San Juan at 35.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

The economy remains buoyant, which is an important factor when it comes to the regional housing market, particularly as it affects buyers. Even though the number of homes that came to market has jumped significantly, which should favor those looking for a new home, demand is still robust, and the market remains competitive.

A speedometer graph indicating a strong seller's market in Western Washington for Q2 2022.

Much to the disappointment of buyers, rising listing prices suggest that sellers are clearly still confident even as financing costs continue to increase. While the pace of price growth is slowing, sellers are still generally in control. As such, I have moved the needle a little more in the direction of sellers. Until we see list-price growth and home sales slow significantly, we will not reach a balanced market.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Monthly Newletter • July 22, 2022

Real Estate Newsletter – 07/21/2022

by Travis DeFries

There is an old adage in real estate: location, location, location. Where a property is located has the biggest influence on its value. Through the pandemic years, we saw a shift in how the location was valued. Before remote working became more common, homes located in neighborhoods that were closer to job centers such as Seattle were at a premium. They still are, but with more people working from home, there was a huge rush to suburban and even rural locations which quickly increased the values of those neighborhoods. You couple this re-organization of our communities with the lowest interest rates in history and voila, you have an incredible run-up in prices over a two-year period.In Snohomish County, in April of 2020, the median price was $520,000 and in April of 2022 the median price was $830,000 – this is a 60% increase in 2 years! In King County, in April of 2020, the median price was $720,000 and in April of 2022 the median price was $995,000 – this is a 38% increase in 2 years! Historical averages for annual price appreciation are closer to 3-5% making this record-breaking.

For the buyers who bought during these peak times, it is understandable that there is some angst over the shift in the market. They can find comfort in the low rate they secured, which created a lower payment and offsets the money they put towards debt service. They also need to understand that real estate has always been a long-term hold investment and that future price appreciation is anticipated, but at more historical norms.Since the start of 2022, we have seen a 2-point increase in interest rates which has started to level out this wild price appreciation. Interest rates were at all-time lows and are higher now, but still below the 30-year average of 7.5%. In addition, the work-from-home (WFH) phenomenon has settled in. Meaning the companies that decided to adapt to the WFH model did already, and many of those employees made those moves in 2020-2021. Some companies are having their employees return to the brick and mortar in some cases permanently, but in most cases periodically. This has tempered the mobility from urban to suburban locations as that shake-out happened more immediately as a result of companies changing shape at the onset of the pandemic.Higher interest rates, WFH finding its balance, and inflation have created the shift we are experiencing in the market. While it might give some an uneasy feeling, it is in truth a good thing. The price growth that we saw from 2020 to 2022 was not sustainable and returning to historical appreciation norms will put us back in a healthy balance.

We are coming off the peak prices we saw in April of 2022 as the market finds its footing. June median price in Snohomish County is down 4.82% from April and in King down 6.53%. Bear in mind though, that the median price in Snohomish County is up 20% complete year-over-year (the last 12 months over the previous 12 months) and in King 13%. Even more so, the median price in Snohomish County is up 167% since June 2013 and in King by 119%. Equity growth is abundant and sellers are making great returns. This must be kept in perspective as we return to balance in the market and prices level out!This has created more inventory in the market giving buyers more selection and time to weigh their options. Where before a buyer had only hours to make one of the biggest decisions of their lives, they can now ponder and assess over the course of days. Not to mention, buyers are now securing contracts with contingency protections to ensure their due diligence is timely and secure. We have seen an increase in days on the market overall, but the days on market for the desirable “cream puff” listings are still very short. A buyer should be aligned with a broker that can help them discern their options.You see, the new assortment of inventory is a bit jumbled, if you will. Some sellers are not leaning into the balance in the market and have their listings misplaced in the wrong price range. This is confusing to buyers and requires a quick and thoughtful assessment of value by their broker so they can make a clear decision. This ensures a buyer does not overpay but also ensures a buyer doesn’t miss out on a great home that will go quickly.Some neighborhoods are still in a seller’s market environment and some are in balance, it depends! A seller’s market is considered 0-2 months of inventory, a balanced market is 2-4 months and a buyer’s market is 4+ months. Even more so, some neighborhoods’ market conditions vary by price point, so it is important that you take a forensic approach to the analysis of each location from a macro to a micro approach. For example, in southwest Snohomish County between $700,000-$800,000 it is still a seller’s market; but from $800,000-$900,000 it is a balanced market.

In Snohomish County, days on market for homes that sold in June for over list price was 5 days, which accounted for 49% of the sales with an average escalation of 5%. This illustrates that there are still great homes that buyers are flocking to, but it is imperative that they are properly positioned in the market. This takes skill, research, and a reasonable approach to find this success as a seller. Conversely, 34% of sales in June sold under list price or took a price reduction and averaged 12 days on market and 27 days on market respectively. This mash-up requires sophisticated navigation and reasonable cooperation, but ultimately sellers will find success because they are sitting on a mound of historical equity growth.

In King County, days on market for homes that sold in June for over list price was 5 days, which accounts for 50% of the sales with an average escalation of 6%. Conversely, 30% of sales in June sold under list price or took a price reduction and averaged 13 days on market and 27 days on market respectively.As we head into the dog days of summer, I am sharpening my pencil on this new market and taking inventory of the opportunities it is providing for both sellers and buyers. It is also a market that will see attrition of brokers, as many only know how to exist in the feverish seller’s market. Each market takes skill, but navigating change is where we will see the cream rise to the top. If you are curious about how your real estate goal aligns with today’s market, please reach out. It is my mission to help keep my clients well informed and empower strong decisions.

We are holding a Food Drive through the month of July, with a goal to donate $5,000 to the Volunteers of America Food Banks across Snohomish County. You can donate here, or bring non-perishable donations to my office through the month of July.Thank you!

Community Info • July 19, 2022

South King County Market Report – Q2 2022

by Travis DeFries

As we head into the second half of 2022, we are experiencing a shift in the real estate market. The market is starting to balance out after two years of an intense seller’s market. Q1 this year had the lowest amount of inventory we have ever seen, which put upward pressure on prices. With the addition of more homes coming to market in Q2 and a 2-point increase in interest rates since the beginning of the year, price appreciation is starting to decelerate. We are coming off the peak prices of Q1 due to these environmental adjustments but are still sitting on top of hefty year-over-year price gains.

Buyers have more selection to choose from, which has reduced the number of multiple offers and tempered price escalations. This has resulted in days on market becoming longer as buyers weigh their options. Sellers are still making huge returns as year-over-year price growth has been above average for the last decade. Long-term growth needs to be kept in perspective as we return to balance. If you are curious about how your real estate goals match up with the market, please reach out. It is my goal to help keep my clients informed and empower strong decisions.

Community Info • July 19, 2022

North Snohomish County Market Report – Q2 2022

by Travis DeFries

Community Info • July 19, 2022

Metro Seattle Market Report – Q2 2022

by Travis DeFries