For March 2024 in Snohomish County, home prices took a sizeable jump in average sales price due to continued low supply of both existing (resale) and newly constructed homes.
Average home price for existing (previously owned) homes: $800,100
Average home price for new construction homes: $914,700
During March, interest rates dipped downward (under 7% for a brief time), allowing mortgage rates to dip as well. This likely contributed to some of the price increase as well. And not to forget, historically the spring time (Feb to May) is the busiest time to buy and sell homes, which can also drive home prices upward.
The inventory of existing (resale) Snohomish County homes for March 2024 is the lowest it’s been since approximately March of 2022! New construction home inventory for March was also at its lowest point since March of 2022.
Further evidence of buyer demand and low inventory is the average days on market a home is listed for sale. It was at eleven days, the lowest since June of 2023.
Another telling sign of the resiliency of our local Snohomish County housing market - the average final (contracted) home sales price was ABOVE the asking price by 3.5% (1% above for new construction homes). This is significant, and yet another sign of high demand and low supply, even in what seems a relatively high interest rate and precarious market. Example - the average home sale price for March 2024 was $800,000, thus the original asking price was approximately $773,000. We have to look back to June 2022 for the last time homes were selling for that much over the original asking price.
Summary
The local Snohomish County market has heated up again due to low inventory, and higher demand for our amazing area. The spring season which is historically the most popular time to list homes, and buy them was also a factor in higher home prices. The dip in interest rates likely also contributed to the higher home demand.Â
As we make our way out of the spring season I would expect home prices to trend downward as demand dries up and buyers digest the increasing mortgage interest rates (that are now near 7.5%). There is also concern in the market as to whether the Fed will reduce the Fed Funds rate in 2024 (originally they were signaling potentially 3 rate cuts), which has a direct effect on the consumer market from credit card and auto loan rates, to home mortgages.
Please remember I’m only reviewing and providing opinions on Snohomish County housing data. Housing markets vary greatly from one market to the next. In fact, they can differ significantly from zip to zip, and even from neighborhood to neighborhood.
If you want to learn more about the Snohomish County housing market—whether by zip code, community, or neighborhood—or if you're curious about other counties, cities, or states, and the best times to buy, sell, or rent, please contact me. I'm happy to discuss this with you at no cost or obligation.
To view the Snohomish County housing trends, mortgage rates, and other data that I used for this market update, please visit: https://www.joefrankrealtor.com/data
Thank you for taking the time to read this article!
If you have any questions or comments, please feel free to comment below, email, text, or find me on social.
Cheers!
-Joe
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