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

And with mortgage rates at less than 4%, real estate brokers say it’s a great time to go home shopping.

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

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.