Published December 20, 2021
December 2021 Market Update
With Winter officially just days away, temperatures dropping and snow flurries showing up, the weather is getting cooler though the real estate market is staying toasty as we head into the holidays.
Inventory Down To Lowest Levels In 10 Years
In November, Inventory shrank to the lowest levels in more than 10 years with just 0.2 Months (6 days) in Snohomish County and 0.4 Months (12 days) in King County. Last month Snohomish County had 0.4 Months & King County which were levels seen through much of 2021.
List to Sell Ratio Rising
The shrinking inventory boosted the list-to-sell price ratios which rose 1.4% in Snohomish County to 104.4% and up 0.4% in King County to 104.6%... which is certainly increasing the pressure on Buyers to be more competitive.
Values Steady
Despite the lower inventory, median home prices were stable from October to November staying at $650k in Snohomish County and $750k in King County. This is likely influenced more by the seasonality of the market where fewer higher-end homes come to market in the final quarter of the year.
Despite the lower inventory, median home prices were stable from October to November staying at $650k in Snohomish County and $750k in King County. This is likely influenced more by the seasonality of the market where fewer higher-end homes come to market in the final quarter of the year.
Overall, year over year we've seen housing prices rise in King County by 11% and by 22% in Snohomish County.
Interest Rates Steady Though On Upward Path
Thirty-year mortgage rates held steady from October to November at 3.1%, however, they've been slowly and steadily rising since being at 2.8% in August. With continued action from The Fed to control inflation, we'll likely see rates continue to rise in Q1 & Q2 of 2022 most likely into the 3.25% to 3.50% range.
What Does It Mean?
November is an example of a few key factors in our market:
- Buyer Demand - clearly there is substantial, continuing buyer demand with both new to market buyers, as well as buyers who are seasoned and still looking for success.
- Rising Rates & Aggression - facing the risk of higher long-term ownership costs buyers are offering a bit more upfront to lock in lower rates by winning their home today.
- Seller Seasonality - while buyers tend to move whenever they can find the right home, fewer sellers like to move over the holidays which is constraining supply.
This means it's an exceptionally great time to be a seller... and will likely remain very favorable through February/March 2022 when more seasonal inventory comes online. Low rates continue to make it a great time for Buyers to be thoughtfully and aggressively shopping.
