Home prices are increasing and inventory is shrinking in the Puget Sound area. That’s the word from Coldwell Banker Bain, which released its 2017 annual market report providing a variety of statistics for the sale of homes and condos in neighborhoods and counties.
“There is no expected end in sight in 2018 for buyers or sellers experiencing a tough market,” Mike Grady, CB Bain president and COO. “Inventories are expected to lag well behind the number of buyers, and as a result home prices can be expected to continue rising.”
The biggest question, Grady said, seems to be related to rising interest rates and the impact of the Trump administration’s recent tax plan on the housing market. “Both issues could provoke more sellers to go to market, and that would be a nice result for buyers,” Grady said.
As for Snohomish County, John Speer, principal managing broker of CB Bain of Everett, said that the average sales prices for single family homes, including condos, increased significantly in 2017, while the inventory levels of both new and resale homes on the market continued to shrink.
“The cities of Edmonds, Lynnwood and Bothell in south Snohomish County saw price increases of 15 percent or more,” Speer said. “Lower inventory levels were particularly acute in Everett, Marysville and Edmonds.”
A strong sellers’ market posed huge challenges for buyers, who were forced to geographically extend their home search areas in search of lower prices. “Cash buyers and the most qualified financed buyers usually prevailed over the others in multiple offer situations,” Speer said.
According to the report, the average selling price for a home in Edmonds in 2017 was $655,000. In Lynnwood, the average sales price was $497,000. Both of those were above the sales price of $477,000 reported across Snohomish County.
Average days on the market in Edmonds was 26 while Lynnwood was 30. Snohomish County overall was 29.
By comparison, the average sales price of a home in Seattle was $921,000 and on the Eastside the price was just above $1 million.
As of the last day of 2017, Edmonds had a current inventory of just 35 housing units on the market while Lynnwood had 33. That’s 37.5 percent fewer units than a year ago for Edmonds and 5.7 percent fewer in Lynnwood. Overall, inventory in Snohomish County was 30 percent lower at the end of 2017 compared to 2016, the report said.
Seattle’s inventory was down 31 percent from a year ago, while there was 16 percent less inventory on the Eastside.
You can see the complete report for all Puget Sound areas here.