SNOHOMISH COUNTY HOUSING MARKET FORECAST

Home Prices, Market Trends, Graphs Video and Infographics

SNOHOMISH COUNTY HOUSING MARKET AT A GLANCE

snohomish county housing market report

Click Image To View Full Size

TABLE OF CONTENTS

3 KEY INDICATORS
Snohomish County Housing Market

  1. SALES ACTIVITY INTENSITY:
    • 58.9% (SURGE)
  2. INTEREST RATE:
    • 6.91% (MANAGEABLE)
  3. INVENTORY LEVEL:
    • 1.3 Month (SHORTAGE)

THE BIG DEAL
Winter Cleanup Season! As the supply of new resale listings dips during the colder months, unsold inventory is steadily being absorbed. This seasonal cleanup sets the stage for a dynamic first quarter of 2025, as each new resale listing will likely attract heightened buyer interest. With a strong Sales Activity Intensity™ of 51.7%, the market remains lively, even as the calendar winds down. This December, buyers and sellers alike are gearing up for what promises to be an active start to the new year.

Enjoy The Snohomish County Market Report Video

Snohomish County Housing Market Report for December 2024: Navigating a Competitive Winter Market

"Did you know 58% of homes in Snohomish County are selling within 30 days, even in the slowest season of the year?"

Snohomish County’s housing market continues to defy winter expectations, with demand remaining high and inventory critically low at just 1.2 months. While the winter season typically brings a slowdown, buyers are staying active, and sellers are benefiting from favorable market conditions. With an average sale price of $801,855 and homes moving in an average of 30 days, it’s clear that the market is still highly competitive.

Let’s dive into the three key indicators shaping Snohomish County’s housing market this month.

Detailed Explanation of the 3 Key Indicators

  1. Sales Activity Intensity:

    • Definition: This metric reflects the percentage of homes that go under contract within the first 30 days of listing. It's a direct indicator of the market's temperature, showing how quickly homes are moving from listing to pending status.
    • Scale:
          • <25%: Buyer's market – low demand, homes take longer to sell.
          • 25%: Healthy market – balanced demand and supply.
          • 35%: Strong market – increasing demand, sellers have a slight advantage.
          • 45%: Very strong market – high demand, multiple offers are common.
          • 55%: Surge – very high demand, significantly more buyers than available homes.
          • 65%: Frenzy – extreme demand, homes sell extremely quickly, often well above asking price.
          • 75%+: Extreme frenzy – unprecedented demand, highly competitive conditions.

    2. Monthly Inventory Levels:

      • Definition: This measures the number of months it would take to sell all current listings at the current sales pace without any new listings being added. It's a critical indicator of market balance.
      • Scale:
        • 0-1 month: Severe shortage – extremely low inventory, seller's market.
        • 1-2 months: Shortage – low inventory, strong seller's advantage.
        • 2-3 months: Low – less inventory, leaning towards sellers.
        • 3-4 months: Healthy – balanced between buyers and sellers.
        • 4-5 months: Selectability – more options for buyers, slight buyer's advantage.
        • 5+ months: Buyer's market – high inventory, buyers have leverage.

    3. Interest Rates:

      • Definition: This refers to the average mortgage rate available to homebuyers. Interest rates are a significant factor affecting affordability and buyer demand.
      • Scale (not a fixed scale but commonly accepted ranges):
        • 3-4%: Excellent – very favorable for buyers.
        • 5-6%: Good – relatively affordable for most buyers.
        • 7-8%: Uncomfortable – can slow down buyer activity as financing becomes more expensive.
        • 9-10%: Challenging – high rates can lead to decreased demand and slower market activity.

    Each of these indicators plays a crucial role in interpreting the dynamics of the Seattle housing market. By analyzing trends within these metrics, we can better understand the forces at play, predict future movements, and strategize accordingly. Whether you're looking to buy a home, sell one, or simply keep an eye on market developments, these indicators provide the insights needed to navigate the complexities of Seattle's real estate landscape.

    Sales Activity Intensity™

    Current Effect:
    The Sales Activity Intensity™ in Snohomish County is very high, with 58% of homes selling within the first 30 days of listing. This level of activity reflects a “very strong” market, with homes spending an average of 30 days on the market and drawing 13 showings before going pending.

    What This Means:

    • For Buyers: You’re entering a highly competitive market. With homes moving this quickly, pre-approval is essential to act decisively when the right home comes along.
    • For Sellers: This high-intensity environment is favorable, but as inventory increases slightly, competitive pricing and strong home presentation are key to attract offers quickly.

    Monthly Inventory Levels

    Current Effect:
    Snohomish County inventory stands at 1.2 months, signaling a significant shortage. Even with 1,368 homes available and 690 new listings this month, demand continues to drive quick sales, keeping inventory limited.

    What This Means:

    • For Buyers: Limited inventory means strong competition for available homes, especially in the mid-market price range. Be prepared to act quickly and make competitive offers.
    • For Sellers: Low inventory gives you leverage in the market. Take advantage of this opportunity to list now while buyer demand is strong, but remain mindful of pricing trends as affordability becomes a concern for some buyers.

    Interest Rates

    Current Effect:
    Interest rates are holding steady at 6.91%, slightly higher than last month’s 6.87%. This increase may put pressure on monthly budgets, but buyer demand remains resilient, indicating that buyers are adjusting to current financing conditions.

    What This Means:

    • For Buyers: Higher rates may strain affordability, so explore creative options like rate buy-downs or adjustable-rate mortgages to reduce monthly payments.
    • For Sellers: Offering rate concessions or incentives can make your property stand out to rate-sensitive buyers, potentially securing a quicker sale.

    Overall Market Trends

    Snohomish County’s housing market remains highly competitive, with tight inventory and strong demand driving quick sales. Homes are selling at an average of 99.2% of their list price, showing that competitive pricing continues to be essential. While interest rates are slightly higher, motivated buyers are still stepping up, particularly in the $400k–$800k price range, which remains a sweet spot for demand.

    Key Takeaways

    For Sellers:

    1. Stage and Price Wisely: Even with high demand, presenting your home in the best possible light and pricing it competitively are essential for attracting serious offers.
    2. List Now to Capture Demand: The low inventory and strong buyer interest make this an excellent time to sell, even during the winter market slowdown.

    For Buyers:

    1. Get Pre-Approved: Pre-approval is critical in this fast-moving market. Having financing in place allows you to act quickly and make a strong offer.
    2. Negotiate Where Possible: With more listings available, there may be opportunities for concessions such as seller-paid closing costs or rate buy-downs to help offset financing challenges.

    Residential Resale, Condos & New Construction

    • Resale Residential Homes: The average sale price for Snohomish County homes is $801,855, with a 99.2% list-to-sales price ratio. Homes continue to sell quickly, spending an average of 30 days on the market.
    • Condominiums: Condos remain a great option for buyers looking to enter the market at a lower price point. However, it’s important to factor in HOA fees when budgeting for monthly expenses.
    • New Construction: New builds remain attractive for buyers seeking energy efficiency and modern layouts. Builders offering incentives like rate buy-downs or upgrades are likely to stay competitive in this rate-sensitive market.

    The Fed’s Influence

    The recent rise in mortgage rates to 6.91% has increased monthly payment obligations, impacting buyer affordability. With further potential adjustments by the Federal Reserve, some buyers are motivated to lock in current rates before additional increases.

    Seasonality

    As expected, Snohomish County is solidly in the slower Winter Market, with fewer new listings and reduced buyer activity compared to peak seasons. However, demand remains strong enough to keep the market competitive, with motivated buyers snapping up well-priced homes quickly. Sellers can still attract offers, especially if they price appropriately and prepare their homes for maximum appeal.

    Strategic Insights for Buyers and Sellers

    For Sellers:

    1. Stage & Price Competitively: Even in a favorable market, attention to detail in staging and pricing will help your home stand out.
    2. Act Now: The low inventory and strong buyer demand make this a great time to list, even as we move through the winter season.

    For Buyers:

    1. Pre-Approval is Essential: With higher rates and ongoing competition, knowing your budget and being ready to act are critical.
    2. Explore Seller Concessions: Look for opportunities to negotiate rate buy-downs or seller-paid closing costs to manage your financing needs.

    The Rent vs. Buy Conversation

    With rental prices continuing to rise, buying is becoming an increasingly attractive option for those planning to stay in Snohomish County long-term. The stability of fixed monthly payments and the opportunity to build equity make homeownership a strategic financial move, even with higher interest rates.

    Strong Year Ahead for the Housing Market

    We are ending the year where we started as interest rates lower into the 6’s.

    Going into 2025 with a lower interest rate projects a higher number of transactions as more buyers enter the market.

    For more details or a copy of the 2025 Housing Forecast (coming mid-December), contact your John L. Scott broker.J Lennox Scott

    LENNOX SCOTT

    CEO of John L. Scott Real Estate

    lennox scott ceo of john l scott
    Snohomish County Real Estate GRAPHS & Data

    SALES ACTIVITY AND INVENTORY

    sales activity

    With just 1.2 months of supply, Snohomish County would run out of homes for sale in approximately 36 days if no new listings were added. This low inventory continues to drive a highly competitive market where buyers face limited options and quick decision-making is key.

    If you're shopping for homes priced over $1.5 million, you’ll find slightly more breathing room, with 2.3 months of inventory available. However, this higher-end market remains competitive, especially for properties with desirable features or prime locations.

    A total of 789 homes were sold in Snohomish County last month, underscoring strong buyer activity despite the seasonal slowdown. Homes in the $350k to $1M price range remain the most commonly listed and sold, reflecting the sweet spot for demand in the area.

    Why Does Low Inventory Matter?

    • Anything below 5 months of inventory is considered a seller’s market. Snohomish County’s current inventory level keeps it firmly in that category.
    • Low supply equals high demand, which supports steady or rising prices, especially in popular price ranges.

    Key Takeaway:
    For buyers, expect strong competition and limited options in the mid-market range. For sellers, the low inventory provides favorable conditions, but pricing your home competitively will maximize interest and offers.

    DAYS ON MARKET
    days on market

    In Snohomish County, 58% of homes are selling within the first 30 days of listing, indicating a highly competitive market compared to the typical 30% in a balanced market. This trend is even more pronounced in the $500,000 to $750,000 price range, where 60.9% of homes go pending within the first month. The limited number of homes for sale, coupled with sustained buyer interest, results in properties moving off the market swiftly.

    Key Takeaways:

    • Buyers: Be prepared to act quickly and make strong offers, especially in the mid-market price ranges.

    • Sellers: The current market conditions favor prompt sales, but strategic pricing and presentation remain crucial to attract the best offers.

    PRICE
    • Current Average Sale Price: $801,855
      • Single-Family Residential: $859,263
      • Condos: $610,646

    Looking back 5 years to December 2019:

    • Average Sale Price: $493,497
      • Single-Family Residential: $528,388
      • Condos: $395,305

    This represents a 62.5% increase in overall home values, with single-family homes rising 62.6% and condos climbing 54.4% over the past five years.

    List-to-Sale Price Ratio: Homes are selling at 99.2% of their list price, indicating that pricing homes appropriately remains key to attracting serious buyers and closing deals quickly.

    Key Takeaway:
    Whether selling a single-family home or a condo, Snohomish County’s upward pricing trend demonstrates robust equity growth for homeowners and sustained demand from buyers, even in a higher interest rate environment.

    TIMING
    yearly housing cycles

    According to the John L. Scott 6 Phases of a Yearly Housing Cycle, Snohomish County is now firmly in the Winter Market, the slowest phase of the year. This period is characterized by fewer new listings and reduced overall buyer activity, as the market naturally cools during the holiday season.

    However, even in this quieter cycle, strong demand and tight inventory continue to drive quick sales for homes that are well-priced and presented. Buyers are still active, and motivated sellers can capitalize on the reduced competition.

    JOB AND POPULATION GROWTH
    unemployment rates

    WA Employment Security Department

    Where Counties are Growing[Source: U.S. Census Bureau]

    Map of Seattle inbound & outbound migration trends

    Snohomish County Housing Market Stats

    STATS PROVIDED BY: INFOSPARK

    • $801,855 was the average sold price for listings in Snohomish County.
    • 690 new listings went on the market this month.
    • 1,368 homes were for sale during the month.
    • 817 homes went pending in Snohomish County.
    • 789 homes sold this month
    • 1.2  months of inventory available in Snohomish County.
    • 30 was the average days on market for a home to sell in Snohomish County.
    • 99.2% was the average listing price vs. sales price percentage
    • $412 was the average price per square foot in Snohomish County.
    • $629,924,001  was the total closed sales volume for Snohomish County.
    • 6.91% was the interest rate
    • 58% of homes sold in the first 30 days in Snohomish County.
    • 13 Average showings to go Pending
    • 5.2 Showings p.9er Listing

    SNOHOMISH COUNTY HOMES FOR SALE

    Image
    SEARCH SNOHOMISH COUNTY

    Snohomish County Housing Market Summary

    As we close out December 2024, the Snohomish County housing market continues to show strength and resilience, even as mortgage rates ticked up to 6.91%. The average sold price stands at $801,855, demonstrating ongoing buyer interest despite affordability challenges. This month, 789 homes sold, and 817 went pending, further highlighting robust demand.

    Inventory remains tight at 1.2 months, solidly within seller’s market territory. Homes are averaging 30 days on market, with 58% of homes going pending within the first 30 days—a notable increase from last month’s 55.5%, underscoring the market’s high intensity.

    With 690 new listings and 1,368 homes available, inventory is offering limited options for buyers, who are competing fiercely for available properties. Sellers are still in a favorable position but should focus on strategic pricing and preparing their homes to stand out as competition slowly increases.

    Despite higher mortgage rates, buyer demand remains steady, proving that motivated buyers are adjusting to current financing conditions. Snohomish County remains a strong seller’s market, but as we head into 2025, rising listings and broader market dynamics may begin to shift the balance slightly. For now, both buyers and sellers should stay focused and ready to take advantage of opportunities in this competitive year-end market.

    Share this post!