Snohomish County Real Estate Market Recap – October 2024

Published on November 6, 2024, by Kim Pelham, The Pelham Group Northwest at Katrina Eileen Real Estate

October’s Dynamic Real Estate Market in Snohomish County

October brought an energetic pace to the Snohomish County real estate market, showing strong growth despite fluctuating mortgage rates and increasing inventory. Here’s an in-depth look at the numbers and trends that shaped the month.

 

Surge in New Listings and Sales Year-Over-Year

The market saw 1,051 new listings in Snohomish County, a 25.8% increase compared to October 2023, offering buyers more choices. Closed sales also rose significantly, with 927 homes sold—a 20.08% increase from the same period last year. This growth reflects the enduring appeal and resilience of Snohomish County as a sought-after location.

Rising Median Sales Price in Snohomish County

The median sales price in Snohomish County reached $753,000, marking a 7.52% increase over October 2023. This upward trend is promising for sellers, as it reflects balanced demand and supply in a market influenced by economic changes. Maintaining this steady price growth underscores Snohomish County’s established value in the region.

Regional Market Trends

According to the Northwest Multiple Listing Service (NWMLS), October brought significant shifts across Washington state, with inventory, closed sales, and pricing seeing notable changes:

  • Inventory Growth: While active listings declined slightly month-over-month, there was a 29.8% increase in inventory year-over-year statewide. Counties like Grant and Pacific saw high inventory growth, offering new opportunities region-wide.
  • Closed Sales Increases: Closed sales rose by 11% month-over-month and 22.5% year-over-year, signaling a strong period for transactions.
  • Median Sale Price: Statewide, the median sale price for homes rose to $650,000, reflecting an 8% increase year-over-year. Snohomish County maintained one of the highest median sale prices in the state, highlighting its pricing strength.

What’s Ahead for the Market?

Looking forward, both buyers and sellers in Snohomish County should consider a balanced approach. Buyers can benefit by monitoring interest rate changes closely, while sellers may capitalize on the region’s stable and growing median price by working with experienced agents for optimal pricing and timing strategies.

For more insights and expert guidance in this evolving market, reach out to The Pelham Group Northwest at Katrina Eileen Real Estate. Our team is ready to help you navigate Snohomish County’s real estate opportunities and achieve your goals.

Down Payment Assistance Programs: Making Homeownership More Accessible for First-Time Buyers

At The Pelham Group Northwest, we believe everyone should have the opportunity to achieve the dream of homeownership, especially first-time buyers. One of the most common misconceptions we hear is that you need a large sum of money saved up to purchase a home. This belief often keeps people renting for years, missing out on the chance to build equity. The truth is, there are several down payment assistance programs available today, and they are designed specifically to help first-time homebuyers with this hurdle. Let’s explore what these programs offer and dispel the myth that homeownership is out of reach without significant savings.

What Are Down Payment Assistance Programs?

Down payment assistance (DPA) programs are designed to help buyers cover the initial costs of purchasing a home. These programs are offered by various sources, including federal, state, and local governments, as well as private lenders and nonprofit organizations. The assistance can come in several forms, such as grants, low-interest loans, or deferred-payment loans, which typically do not require repayment until the home is sold or refinanced.

Types of Down Payment Assistance Programs

  1. Grants: These are funds you don’t have to repay, and they can be used to cover part or all of your down payment or closing costs.
  2. Low-Interest Loans: Some programs offer loans at a lower interest rate, which can be repaid over a longer period or at the time of home sale.
  3. Forgivable Loans: Certain programs offer loans that are completely forgivable after a set period of time (typically 5-10 years), as long as you remain in the home.
  4. Matched Savings Programs: Some programs match the funds that buyers save for their down payment, effectively doubling or even tripling their savings.

Dispelling the Myth: You Don’t Need a Huge Down Payment

One of the biggest myths is that you need 20% down to purchase a home. While putting down 20% can help you avoid private mortgage insurance (PMI), most first-time homebuyers put down far less. In fact, some programs allow you to purchase a home with as little as 3% down.

For example, FHA loans typically require only 3.5% down, and conventional loans with Fannie Mae or Freddie Mac can go as low as 3%. When paired with down payment assistance programs, many buyers are able to move into their new homes with minimal upfront costs.

Why Keep Renting When You Could Be Building Equity?

Renting might seem like the easier option, but in the long term, it limits your financial growth. Every rent check is helping your landlord build equity in the property, while you’re missing out on the chance to build wealth for yourself. Homeownership allows you to invest in your future, build equity, and take advantage of tax benefits like mortgage interest deductions.

With the wide range of down payment assistance programs available, buying a home may be more within reach than you think. It’s time to stop paying rent and start investing in your own future.

Let Us Help You Find the Right Program

At The Pelham Group Northwest, we’re here to guide you through the process of finding the right down payment assistance program for your needs. Whether you’re looking to buy your first home or just need help with the down payment, our experienced team is ready to assist you every step of the way.

Contact us today to learn more about these programs and take the first step toward owning your own home. Stop renting and start building equity today!

Ready to explore your options? Reach out to us at https://thepelhamgroupnw.com to get started.

Tailored Real Estate Services for Seniors: Choose The Pelham Group

Navigating the world of real estate can be challenging at any age, but for seniors, these challenges often come with additional considerations. Whether you’re downsizing, transitioning to a retirement community, or looking to make your current home more senior-friendly, it’s essential to have a trusted expert by your side. That’s where Kim and The Pelham Group step in.

At The Pelham Group, we specialize in tailored real estate solutions designed to meet the unique needs of seniors and their families. We understand the emotional and logistical hurdles that come with buying, selling, or transitioning to new living arrangements, and we offer comprehensive support every step of the way.

Why Seniors Choose Kim and The Pelham Group
Senior Real Estate Expertise You Can Trust

With certifications in senior real estate services and in-depth knowledge of the local market, Kim and the team are experts in guiding seniors through their real estate journeys. From downsizing to finding senior-friendly housing options, we provide compassionate, hands-on assistance tailored to your needs. Our goal is to make the process as smooth and stress-free as possible.

A Personalized Approach to Real Estate

We recognize that no two situations are the same. That’s why we start with a no-cost consultation to discuss your specific circumstances. Whether you need help selling a family home, finding a more accessible living space, or navigating complex financial decisions, Kim and her team create a plan that is fully personalized to your goals and timeline.

Support for the Whole Family

Transitions often involve more than just the senior. Families play an important role, and we work closely with them to ensure everyone is on the same page. From legal guidance and financial planning to home care and moving services, we offer comprehensive support that gives families peace of mind.
Comprehensive Real Estate Services for Seniors

Whether you’re buying or selling, we offer a full range of services that include:

Downsizing Assistance: We help you plan and organize every step, from decluttering to managing estate sales.

Senior-Friendly Housing Options: We provide expert guidance on finding the right senior living arrangement, whether it’s independent living, assisted living, or memory care.

Home Modifications: If you choose to age in place, we offer home modification solutions to make your home more accessible and comfortable.

Let Kim and The Pelham Group Be Your Trusted Partner

Senior transitions can feel overwhelming, but with Kim and The Pelham Group, you don’t have to navigate them alone. Our compassionate and experienced team is dedicated to providing the highest level of service, ensuring that your real estate needs are met with care and expertise.

If you or a loved one are considering a move, downsizing, or exploring senior-friendly housing options, contact Kim today for a complimentary consultation. Let us help make your next real estate experience a seamless and positive one.

Fall Buyer and Seller Guides NOW AVAILABLE

As we move into the fall season, The Pelham Group Northwest is excited to announce the release of our new Fall Buyer and Seller Guides!

 

These guides are designed to provide valuable insights into the real estate market and offer essential tips for anyone considering buying or selling a home this season.

Click to view

In each guide, you’ll find practical information to help you make more informed decisions. From the latest statistics to current market trends, we aim to keep you updated with everything you need to navigate the ever-changing real estate landscape. Whether you’re a first-time homebuyer, looking to upgrade, or planning to sell, our guides are tailored to make the process smoother, more transparent, and stress-free.

Have questions? Want to know how to apply the insights in these guides to your own situation? Don’t hesitate to reach out to us at The Pelham Group Northwest. We’re here to ensure you’re supported every step of the way.

Let us help you feel confident in your real estate journey this fall!

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

What Comes With The House?

When buying or selling a home, there is a lot going on. It can be easy to get
caught up in the process and activity and overlook details that are
important. One of the most overlooked issues is to define what comes with
the home. Certain items, particularly fixtures and appliances, can be areas
of confusion and should be clearly discussed in the contract.

Here are a few examples:

· Fixtures – Fixtures are items attached to the property and typically
transfer with the home. These include window treatments, built-in shelving,
and lighting fixtures.

· Appliances – Appliances can be confusing. Anything built-in
transfers with the home, but others such as the refrigerator, washer/dryer,
or stand-alone stove might not.

· Personal Property – This is an area that can cause confusion. It’s
assumed that furniture is owned by the sellers, but what about a room air
conditioning unit? If there’s anything the buyer wants, they should be clear
in the contract.

· Outdoor Items – Items like sheds, outdoor furniture, BBQs, and
playsets should be addressed in the contract. They may not be
automatically included in the contract.

There are many aspects of a real estate transaction that can be negotiated.
The focus typically tends to be on price, loan, payments, and other financial
considerations. This is normal. However, taking a step back to consider the
expectations of what other items transfer with the home can avoid
disappointment and conflict

Selling Your Home As-Is

Selling a home as-is can be a strategic decision for many homeowners.
This option often appeals to those who want to avoid the costs of repairs
after negotiations, homeowners with limited equity, or those facing financial
challenges. It can also set clear expectations that buyers should conduct
their due diligence and not anticipate repairs later. Regardless of the
reason, there are effective ways to facilitate a successful as-is sale.

First, it’s important to clarify what “as-is” means. While some homes are
marketed as-is, others may not be. In an as-is sale, the seller is usually not
responsible for making repairs or addressing issues identified during a
home inspection. Buyers need to understand that unless they waive the
home inspection and/or condition contingency, they can typically still back
out if they find the home’s condition unsatisfactory during their inspection
period.

To successfully sell a property as-is, accurate pricing is essential. This
doesn’t mean pricing it below market value, but rather being realistic about
the home’s value and condition. The marketing should clearly state that the
home is being sold as-is and provide details about its condition,
emphasizing its potential and any expected repairs. This transparency can
help reassure buyers and encourage them to consider the property.

Overall, selling a home as-is can be a smart strategy that maximizes the
seller’s return on investment. With the right approach and open
communication, both buyers and sellers can have a rewarding transaction.

Lessons from a Failed Bidding War Attempt

BAM! Another Buyer under contract for LESS THAN LISTING PRICE! I negotiated $60,000 off the purchase price of this classic north Everett home for my Buyer client.  Here’s some important take-aways for both Buyers and Sellers:

LESSONS FOR SELLERS — Failed Bidding War Attempt:
  1. LESSON ONE: You can’t overprice your home. If the seller had listed this home for $575,000, they would have had a bidding war and probably sold for $625,000 and maybe even got to their list price of $650,000. Instead, they tried to get the bidding war price without doing the bidding war process.
  2. LESSON TWO: The more flaws the home has, the more important staging is.  Like many classic homes, this one has some issues that need to be addressed (floor needs to be leveled and refinished, the kitchen is worn, no refrigerator, the electrical system needs some updates, some windows don’t open, etc.)  The sellers chose to show the home vacant without staging.  Staging distracts the eye from flaws. Without staging, all the flaws become glaringly obvious. Also, staging gets buyers emotionally attached to the home which is imperative if you want a bidding war.
  3. LESSON THREE: Seller-provided pre-inspections are great — if you fix things before going on the market! This seller had pre-inspections available for the buyers (sewer and home inspection), but they did not fix any of the items called out by the inspector.  So in effect, you are handing the buyer a list of things that are wrong with the house.  Not the best strategy to get multiple offers!
LESSONS FOR BUYERS — How to Buy Without a Bidding War:
  1. LESSON ONE: Homes that need some work are opportunities. Many buyers do not have the ability or financial means to fix up a home, so the competition on these homes is reduced.
  2. LESSON TWO: Overpriced homes are opportunities, especially if you have any type of financing challenges. My buyers had 5% down, which would make it difficult to compete with other buyers who had larger down payments.  We were the only buyer that was willing to make an offer in the 12 days the home was on the market, so the seller was willing to engage in negotiations resulting in getting $60,000 off the purchase price!
  3. LESSON THREE: You need an experienced broker to negotiate a lower price.  I wrote a 460-word letter explaining what my buyers love about the home, their financial qualifications, how they have owned two classic homes before, and why our offer price was lower than the asking price, providing a laundry list of items that need to be fixed.  This was not a “love letter” written by the buyer, but a calculated piece of salesmanship to convince the seller to accept our offer.

Maximize Your Buying and Selling Power

Contact me if you are thinking of selling to get a complimentary copy of my book on Maximizing the Return on the Sale of Your Home in Seattle which will help you avoid these and other Seller mistakes.

If you are thinking of buying, I provide a free, no-obligation strategy session to help determine your best path to winning your next home.

Home Staging 4 Year Anniversary

It was 4 years ago that I started my own staging company specializing in occupied homes. This was my first post with Before-and-After photos (click here for original Facebook post) — a condo in South Everett that had been on the market for two months with only 2 showings and no offers. I sold it in 5 days for $5,000 above their previous price. Starting my staging company has been one of the best things I have done in my business to help my clients maximize their return on selling their home.

Most people do not know that the majority of big staging companies will not stage your home if you are living in it because they do not like your dog, your cat, and your kids. They don’t want to mix their stuff with your stuff. But if you have dogs, cats and kids, chances are your home can really benefit from some staging to help you get it looking its best. Marketing your home starts with staging and photography. If your home doesn’t look good online, buyers will simply scroll past it and won’t come and view it. So the first thing I do is help you make your home look like the photos in a magazine.

Creating an Emotional Impact

Next is to make sure that your home has an emotional impact on the buyer when they tour your home. There is psychology behind my staging. My staging is accessible and designed to create an emotional connection with the buyer. The buyer feels comfortable enough to sit down on the couch and picture themselves and their children and pets living in the house.

I use soothing colors in the master bedroom and bath to create a feeling of a spa, an oasis away from the world. In other areas of the home, I use bursts of bright colors and large graphic artwork to create energy to motivate them to make an offer. I make the home memorable by place a quirky or fun decorative item here or there so it stands out in their minds after a long day of viewing properties. “I remember that house. It had the mermaid tail in the master bathroom shower!”

And last, but very much not least, my style of staging distracts the buyer’s eye from any defects that might exist in the house. Things like scuffed paint and tired flooring become less noticeable. I work with things that might be beyond your budget to change, for example creating an updated look with an outdated bathroom tile color.

In most situations, staging has one of the highest returns on investment for anything you do to improve your home. In the listing in the photos, the staging cost the client $1,200 and they made $5,000 more on the sale. That’s a FOUR HUNDRED PERCENT RETURN on investment.

I recently had someone tell me that she received a quote of $6,000 for a partial stage of their home. My price would have been around $3,000 for a full stage. I use your existing furniture whenever possible to help keep costs down and always work with you to balance things within your budget. My staging company exists to serve my clients — it is not a profit center in my business. The staging is done at my cost, so this saves my clients big $$ over the cost of independent stagers.

Maximize Your Selling Power

The real estate market is more competitive than ever, especially in the Seattle area. Standing out from the competition has never been more challenging or crucial to selling your home, which is why home staging is so important to maximize your home’s value during the selling process.

If you would like more information on my step-by-step process to help you sell your home, call today at 425.213.8761 or schedule a FREE consultation to learn more about staging your home.