Snohomish County Real Estate Market Update – September 2024

 

September saw strong activity in the Snohomish County real estate market, with 1,158 new listings coming onto the market and 1,001 properties going under contract, marking a 12.98% increase in pending sales compared to September 2023. Closed sales also saw an uptick, with 898 properties sold—a 4.3% increase year-over-year. The median sales price for single-family homes and condos in Snohomish County rose to $760,000, reflecting a 6.29% gain compared to the previous year.

This data, provided by the Northwest Multiple Listing Service (NWMLS) in its October 2024 report, showcases a market that remains resilient despite ongoing affordability challenges across Washington state.

Interest Rates and Market Trends

Although mortgage rates experienced a slight decline in September, affordability remains a key issue for buyers. The 30-year fixed mortgage rate averaged 6.08% in September, which is still significantly higher than the 3.01% rates available just three years ago. Higher rates have impacted buyers’ purchasing power, yet some relief may come if the Federal Reserve continues its efforts to stabilize the housing market by reducing interest rates further.

Despite these hurdles, Snohomish County’s market continues to offer opportunities for both buyers and sellers, with increased inventory and steady demand for residential properties.

Snohomish County Compared to Other Regions

Snohomish County remains one of the more expensive housing markets in the region, with a median sale price of $760,000 for residential homes and condominiums. While this is lower than King County’s median price of $859,995, it highlights the ongoing demand for homes in the area. As the market begins to stabilize, price growth has slowed compared to the rapid increases seen in previous years, providing a more balanced environment for both buyers and sellers.

More Inventory and Closed Sales

Across the NWMLS coverage area, inventory levels increased significantly, with a 31.4% rise in active listings compared to September 2023. This increase in homes for sale gives buyers more options, even as they navigate higher interest rates. In Snohomish County, closed sales were also up by 4.3%, demonstrating that buyers are still active in the market despite the affordability challenges.

Looking Ahead

As we move further into fall, Snohomish County’s real estate market continues to offer promising opportunities for both buyers and sellers. If you’re thinking about buying or selling a home in Snohomish County, Kim Pelham and The Pelham Group at Katrina Eileen Real Estate are here to guide you through the process. With expert market insights and personalized support, Kim will help you make informed decisions and succeed in today’s dynamic market.

Contact The Pelham Group today to learn more about the current market and how we can assist you in your real estate journey!

What is a Down Payment Gift and Who Can Give it?

When it comes to buying a home, one of the most significant hurdles many
first-time buyers face is the down payment. However, a down payment gift
can alleviate some of that burden. Understanding what a down payment gift
is and who can provide one can make the home-buying process more
accessible.

What is a Down Payment Gift?

A down payment gift is a sum of money given to a homebuyer to help cover
the down payment on a property. This financial assistance can come from
various sources, and it does not need to be repaid. Typically, down
payment gifts are used by first-time homebuyers or those who may not
have enough savings to cover the upfront costs of purchasing a home.

Key Features of Down Payment Gifts

1. No Repayment Required: Unlike loans, down payment gifts do not
have to be paid back. This can significantly ease the financial strain
on buyers.

2. Documentation Required: Lenders often require documentation to
confirm that the funds are indeed a gift, not a loan. This can include a
gift letter from the donor stating the relationship to the buyer and
confirming that the funds are a gift.

3. Source of Funds: Many lenders may also ask for proof of where the
gift funds are coming from to ensure they are legal and legitimate.

Who Can Give a Down Payment Gift?

Several individuals or entities can usually provide down payment gifts,
depending on the lender requirements and terms. Here are some common
sources:

1. Family Members
Family members are the most common source of down payment gifts.
Parents, grandparents, siblings, and other relatives can provide financial
assistance to help their loved ones achieve homeownership.

2. Close Friends
In some cases, close friends may also contribute to a buyer’s down
payment. However, this is less common and may require additional
documentation to clarify the nature of the gift.

3. Employers
Some companies offer down payment assistance programs as part of their
employee benefits. Employers may provide gifts or grants to help
employees with their home purchase.

4. Non-Profit Organizations
Certain non-profit organizations are dedicated to helping individuals and
families achieve homeownership. They may offer down payment gifts,
grants, or assistance programs tailored for specific communities or
demographics.

5. Government Programs
Various government programs exist to assist first-time homebuyers,
including down payment assistance in the form of gifts. These programs
can vary by state or locality, so it’s essential to research what’s available in
your area

Benefits of Down Payment Gifts

1. Increased Buying Power: With a down payment gift, buyers can
increase their purchasing power, allowing them to qualify for a
mortgage they might not have been able to secure otherwise.

2. Lower Monthly Payments: A larger down payment can lead to lower
monthly mortgage payments and potentially eliminate the need for
private mortgage insurance (PMI).

3. Access to Better Loan Terms: Putting down a substantial amount
can improve a buyer’s chances of securing better loan terms, such as
lower interest rates.

A down payment gift can be a valuable resource for homebuyers,
especially those navigating the challenging waters of purchasing their first
home. Understanding the concept of down payment gifts and knowing who
can provide them can help buyers leverage this financial assistance
effectively.

If you’re considering a down payment gift, it’s wise to communicate with
your lender about their requirements and ensure all necessary
documentation is in order. With the right support, achieving homeownership
can be a more attainable goal