Who would have thought, when the pandemic hit, that our real estate market would go absolutely crazy a few months later? At the end of June, in Snohomish County, we have less than 1 month of inventory. This are historic numbers. As is the average sales price…hitting a historic high.
Do you want a definition of a hot real estate market? Last month in Snohomish County, 39% of the homes that sold did so above the list price, with an average market time of 6 days. And an additional 20% sold for full list price. That is a combined 59% of the properties that sold for at least full price.
The culprit…lack of inventory. Last year we thought the inventory was low. One year later (June of 2020) the inventory is about half of what it was in Jun of 2019. How does this get fixed? There is no easy answer. Some don’t want to sell because they have no place to go…and many sellers won’t accept a contingent offer. Others do not want to move now because of the pandemic…the risk of having people enter their homes who might not be healthy. And many just stay in their houses longer than they used to.
But also, interest rates are also at a historic low level. This is pushing buyers who were on the fence to get in the game…low interest rates allow you to have more purchasing power on the same income. Thus, the amount of multiple offers we are seeing.