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Hey, everyone. Anton Stetner here with the Real Estate Solutions Group.
Today we're going to talk about Snohomish County home values for May 2012.
The market is freaking hot, hot, hot, on fire! We're all feeling it. We're
seeing multiple offers. Things are moving quickly. So here's what's
basically going on.
Sales are up 17.7% right now, year-to-date. The average price is still down
1.7% year-to-date, but the median is up 2.0%. Remember, when we're talking
about averages, that's the total divided by the number. Median is just the
middle of the road.
People are saying, "Is this the bottom?" This really feels like it is the
bottom. The only thing that's going to prevent this from being the bottom
of the local market would be rising unemployment, if interest rates jump a
lot, or we see a bunch of foreclosures. Even those things, if the market
has created enough stability, the market will still generally start to rise
out of it. If not, instead of this being the bottom, it will become a stair
step, and the market will go flat for awhile and then step down again.
However, right now based on the hot, hot, hot, it's going up.
Let's put this into perspective. It's not going to shoot up. It's going to
be a nice, gradual walk through. Right now, we're at 2.4 months worth of
inventory. That puts us in a strong seller's market. To give you guys an
example, we put a home on the market in Lake Stevens on Friday afternoon,
we're talking late afternoon, like 3:00 p.m. By Monday morning, we already
had six offers on that property. That's how quick the market is moving
right now.
Let's take a look at some of the other cities and what's basically going
on. Bothell, the average price year-to-date is still down 2.5%. Lake
Stevens, the average price year-to-date is down 1.3%. Lynnwood, the average
price year-to-date is up 1.2%, and that's indicative of even lower
inventory than overall Snohomish County. It has 1.5 months of inventory, so
Lynnwood is like on triple, double fire relative to everywhere else. If
you're trying to buy a home in Lynnwood right now, you're going to have to
be prepared to rock and roll. Everett, we're looking at prices down 0.4%
year-to-date. Anything that's around 0.5% or so, you could almost say
that's negligible. You could say this market has essentially returned to
zero or approximately flat. Marysville, average price year-to-date is down
6.8%. Still a little bit of decimation hanging out in the 'Ville.
One of the other things I wanted to throw in here is our two-year outlook.
This is amazing right here. For sale or inventory down 38.5%. One of the
things that Eric and I looked at and I'll be including in this when you
look down, is you can see the months of inventory graph has done nothing
for the last two years but basically just cascade down. Under contract is
up 125%. That is ridiculous. The Solds are up 22.9%.
Another thing we did was we took the price brackets, we broke them down by
price increments and said, "What was our turnover rate?" In other words,
how many of those properties went pending and sold within the last 30 days?
When we're looking at the price bracket of $120,000 to $160,000 here in
Snohomish County, we have 100% turnover rate. That means everything sold.
From $160,000 to $200,000 once again a 100% turnover rate. If you are a
buyer in this price range, may the force be with you, and I hope you're
lucky and I hope you have FHA and not VA-zero down or USDA financing. It's
going to be hard for you to compete. In the $200,000 to $250,000 range, we
saw 65% of the inventory turn over. In the $250,000 to $300,000 range, we
saw another 65%. From $300,000 to $400,000, still 50% of the inventory
turns over. That's a very quick, very fast, dynamic, moving market.
That's our quick update on Snohomish County home values. I'm Anton Stetner
with the Real Estate Solutions Group. Please subscribe above, comment
below, and we will update you more as we go. Thank you, people.