Here’s your latest update on our current market and where it’s heading.
It seems like everywhere I go, people ask me the same question: “What’s happening in real estate, and where is the market going?” I’ve touched on this topic before, but the market changes all the time. Today I want to fill you in on our current market and where it might be heading.
Our real estate market is on fire. We currently have low inventory, low interest rates, and high competition. This has led to home prices skyrocketing to the point where some people can no longer afford to enter the market. The median price of a home in Snohomish County is up 23.5% over the last year. This is the largest increase out of the three most populated counties in Western Washington.
Not everything is rosy for sellers, though. This is probably due in part to normal seasonal shifts. In the fall, people take vacations, school is starting, and people are generally too busy to engage in the market.
“ We may have to accept two or three months of supply as the new normal.”
In the long term, supply will have to increase before we see an evening out of the market. Right now, we have less than a full month’s supply of homes. This means that if no new homes entered the market, all current inventory would be sold in one month. Six months of supply is considered an even market, and we’re a long way from that.
What does this mean for the future? It doesn’t seem like this shortage of inventory will end anytime soon, so we may have to accept two or three months of supply as the new normal. It’s also likely that the Federal Reserve will have to increase interest rates going into the next year, decreasing buyer demand. Prices won’t decrease, but the rate of growth may level off.
Going into 2022, we should expect to see a more ‘normal’ spring market as interest rates rise and a little more supply hits the market. However, this is just my educated guess. If you have any questions about today’s topic or anything else related to real estate, please reach out to me via phone or email. I am always willing to help.
