February 2020 Market Update

Well the year is off to an exciting start in Puget Sound Real Estate... here the are the major highlights:

70% Selling Under 7 Days & More Than 60% Selling Above List Price!
In a survey of more than 1,900 homes listed in the month of January from around King and Snohomish County, we found more than 70% of homes got into contract within 7 days or less. When we looked further at homes which closed in January, we found more than 60% got more than their list price and average list to sale price ratios were 104.5%. Clearly, Buyers are quite active early in 2020.

Inventory 60% Lower
Compared to this time last year, there is 60% less inventory across the region... which is a major factor driving the reduced time on market and buyer competition. 

Prices Up 5.6% Over Past Year
This increased demand has fueled price growth of more than 5% over the past 12 months in the market.

Interest Rates Down 1%, Increasing Affordability by 10%
With interest rates dropping to 3.5%, Buyers have seen affordability increase by 10% making their monthly housing budget go much further as they search for home.

Opportunities

Buyers - stay patient and leverage lower interest rates to get more home for your monthly payment. Housing inventory is a 'bell curve' every year with low in inventory in December and January and peak which is typically 200-300% higher in June through September. So stay patient the right home will show up for you.

Sellers - take advantage of low inventory in February to April to get on the market and sell your home while you have the greatest leverage, then become a buyer in the May through August period where you inventory of new homes and investments will be more robust. 

Owners - if your mortgage rate exceeds 4.25% and you plan to stay in your home for more than 5 years consider a refinance while rates are historically low.