Sales Activity Intensity™

Current Effect:

The Sales Activity Intensity™ in Snohomish County remains high, with 59.5% of homes selling within the first 30 days of listing, marking a shift into "surge" market conditions. This jump from 53.8% last month indicates that buyers are moving aggressively despite higher interest rates.

Homes are spending an average of 43 days on the market, requiring 16 showings before going pending. This highlights strong buyer demand and an increasingly competitive market as we head toward spring.

What This Means:

📌 For Buyers: Competition is fierce—you need to be pre-approved and ready to move quickly. Multiple offers are common, so work with your agent to craft a strong, competitive offer.

📌 For Sellers: You hold the advantage—homes are selling faster and closer to asking price. However, new inventory is increasing, so strategic pricing and presentation remain key to maximizing your sale price.

Monthly Inventory Levels

Current Effect:

Snohomish County inventory has dropped to just 1 month, down from 1.3 months last month, signaling an extreme inventory shortage.

Even with 975 new listings hitting the market, buyers snapped up homes quickly, leading to 804 homes going pending and 553 homes sold.

What This Means:

📌 For Buyers: Inventory remains critically low, meaning competition for homes—especially in the $500K–$800K price range—is intense. Act fast and make strong offers to secure a home.

📌 For Sellers: Low inventory keeps you in control. Listing now means less competition and high buyer demand, increasing the likelihood of multiple offers and strong sale prices.

Interest Rates

Current Effect:

Interest rates held steady at 7.05% this month, remaining in the "uncomfortable" range. While affordability is stretched, buyers are still finding ways to make homeownership work.

What This Means:

📌 For Buyers: Higher rates impact affordability, so explore rate buy-downs, adjustable-rate mortgages, or seller concessions to reduce your monthly payment.

📌 For Sellers: Offering rate buy-downs or closing cost assistance can attract buyers struggling with affordability and help your home sell faster.

Overall Market Trends

Snohomish County’s housing market remains highly competitive, driven by tight inventory and motivated buyers.

• Homes are selling at 99.4% of list price, showing that buyers are willing to pay near full asking price.
• The $400K–$800K price range remains the most competitive, with multiple offers common.
• Luxury homes are moving as well, but pricing and presentation remain crucial in higher-end markets.

Key Takeaways

For Sellers:

✔ Price & Present Wisely – Buyers are acting fast, but homes that are staged and priced competitively sell the quickest.
✔ Take Advantage of Low Inventory – With only 1 month of supply, now is a prime time to list before spring competition increases.

For Buyers:

✔ Be Pre-Approved & Ready – The fast-moving market means you can’t afford delays. Have financing in place before making offers.
✔ Negotiate Smartly – Look for homes with seller concessions, including rate buy-downs or closing cost assistance, to help with affordability.

Residential Resale, Condos & New Construction

Resale Residential Homes:

• Average sale price: $803,683
• Homes selling at 99.4% of list price
• 43 days on market—faster than last month

Condominiums:

• Condos continue to offer an affordable entry point, with an average price of $410 per square foot.
• Buyers should factor in HOA fees, which can significantly impact total monthly payments.

New Construction:

• Builders are seeing strong interest, especially when offering rate incentives and upgrade packages.
• Energy-efficient, modern homes are in demand, particularly among buyers stretching their budgets in a higher-rate market.

The Fed’s Influence

The Federal Reserve left interest rates unchanged in its most recent meeting, signaling that rates are unlikely to drop in the near term.

• Buyers should act now if they’re ready, rather than waiting for potential rate cuts later in 2025.
• Sellers should consider offering rate incentives to appeal to buyers who are stretching affordability.

Seasonality

Snohomish County is transitioning from the Winter Market Phase into the Spring Surge.

• Buyer activity is picking up, with homes spending fewer days on market compared to last month.
• New listings are increasing, but not fast enough to balance demand, keeping sellers in a strong position.

What This Means:

📌 For Sellers: Listing now means you beat the spring competition, when more inventory enters the market.

📌 For Buyers: More listings will come, but so will more competition. Acting sooner rather than later may allow you to avoid bidding wars.

Strategic Insights for Buyers and Sellers

For Sellers:

✔ Stage & Price Competitively – Homes that look great and are priced right continue to sell quickly.
✔ Act Now – With inventory at just 1 month, listing now means standing out before competition increases in spring.

For Buyers:

✔ Pre-Approval is Essential – Knowing your budget and securing financing puts you in a stronger position to act quickly.
✔ Explore Seller Concessions – Some sellers are offering rate buy-downs or closing cost assistance to help with affordability.

The Rent vs. Buy Conversation

Rent prices in Snohomish County continue to rise, making buying a home an attractive long-term financial decision.

• The average rent for a 3-bedroom house is around $3,100 per month.
• A $500,000 home with 20% down at a 7.05% interest rate results in an estimated monthly mortgage payment of ~$3,100 (including principal, interest, taxes, and insurance).

📌 Key Takeaway: Even with higher interest rates, owning a home provides stability, equity growth, and potential long-term appreciation that renting cannot offer.