The region’s crazy real estate market is calmer — for now

EVERETT — The region’s frenzied real estate market has calmed, but some potential home buyers haven’t gotten the memo.

“The average consumer thinks it’s crazy, crazy out there,” said Courtney McClasky, a broker with Keller Williams Everett.

The “crazy” market that sometimes saw a half-dozen or more would-be buyers bidding on one property is no longer the norm, she said.

But the perception lingers that that’s still the situation, prompting some potential buyers to pull out, McClasky said.

“The reality is we’re seeing far fewer offers, maybe one or two on a property,” she said. “It’s a great time to buy because interest rates are so low.”

Last year at this time, bankers and economists were predicting that interest rates would top 6% by the end of 2019.

That didn’t happen. In recent months, interest rates for a 30-year fixed-rate mortgage have hovered around 3.7% and are expected to remain below 4% for the first part of this year, McClasky said.

McClasky expects higher inventory levels to prevail this year, which means buyers should have a greater choice of more homes.

“I think we’re shifting gears into a more balanced market,” she said.

While a normal or ideal real estate market might offer a four- or five-month supply of homes for sale, the current supply is about two months, McClasky said.

(If there are 50 homes on the market, and 10 homes sell each month, that’s a five-month supply of homes for sale.)

Other brokers aren’t as optimistic and expect new listings will continue to be in short supply.

“People are moving here, home prices will continue to increase, inventory shortages will occur. That’s our future,” Dick Beeson, principal managing broker at RE/MAX Northwest in Gig Harbor, recently said.

The number of days on the market is trending upward, McClasky said, citing figures from recent Northwest Multiple Listing Service reports. The crazy days saw some properties under contract within a week or even a day or two of being listed.

Still, buyers should be ready to pounce, particularly if they spot an appealing property in the $350,000 to $500,000 price range, considered the mid range, she said.

“If there’s a bargain out there, others will find it, too, and they’ll be competing once again,” said Beeson, who is a member of the Northwest Multiple Listing Service board of directors.

Dori Archuleta, senior real estate loan officer at Peoples Bank on Colby Avenue in Everett, said rising rents are motivating renters to consider a home purchase.

In some cases, “the price of rent equals a mortgage payment,” Archuleta said.

“I had one client who was paying $2,400 a month for rent,” Archuleta said. “We were able to get her into a home for $2,000 a month.”

More than half of properties sell within 30 days.

In 2017-18, homes in Snohomish County were selling, on average, at nearly 102% of list price, often a reflection of multiple bids.

In that sales climate, a home listed at $300,000 would have sold for about $306,000.

Last year, the percentage inched downward, McClasky said, with homes selling closer to the list price, at 99.7%.

The prices don’t say what homes are worth — just what’s they’re selling for in a given period.

On the other hand, median home prices are continuing to rise throughout the Puget Sound region.

In November, the median home price for houses and condos in Snohomish County was $471,000, up 5% year over year, according to Northwest Multiple Listing Service.

The median is the point at which half of all homes sold for more and half sold for less.

In King County, the median home price was at $612,000 in November, up from $605,000 in 2018, the NMLS said.

Sellers who want to make a sale are having to spiff up the old homestead.

“We’re seeing fewer as-is properties,” McClasky said.

“Buyers are looking for move-in-ready homes. They don’t want to fix it up after they move in,” Beeson said.

McClasky expects a good showing of home buyers this spring and summer.

Fall, however, could be a different story.

Some would-be buyers could pull out of the market, spooked by the volatility that typically accompanies presidential election years.

In fact, remaining in, or entering, the real estate market at that point might be a good idea, McClasky said.

There’s usually less competition and sellers may be more willing to work with you, she said.

Janice Podsada; jpodsada@heraldnet.com; 425-339-3097; Twitter: JanicePods