Multiple Offers Return to Snoqualmie Ridge
What? Do you think this is 2006 or something? Yeah right... "Multiple Offers" or "Sold in 1 Day?" Puhleeeze...
No... REALLY... the real estate market on Snoqualmie Ridge IS changing, and while home prices are obviously much lower, the overall dynamics of the market at the moment look a lot like 2006. I'm specifically referring to the number of "active" homes for sale, vs. the number of buyers - which is indicated by the number of "pending" closings. In real estate, we call this ratio the "Demand Rate" - active listings divided by pending sales. Combined with the dynamics of other hyper-local real estate markets on Seattle's Eastside, it means both potential buyers and sellers need to awaken from their real estate hyper-sleep! (And we certainly don't blame you if your interest in local real estate has waned over the years.)
Multiple Offers Up - Days on Market Down
Pending listings on the entire Seattle Eastside are WAY up. In Snoqualmie Ridge, pending transactions have more than doubled each month since January - a good portion of which is due to new homes. In the past week, we have represented two buyers who encountered multiple offer situations aon the Eastside, neither of which were accepted due to being out-bid. In one case, we visited the home a second time during an open house, just before submitting the offer. The atmosphere was more like a neighborhood garage sale - with 16 cars at the home upon our arrival, and 14 when we left an hour later. And our experiences are not isolated - other agents speak of similar experiences lately, including at Snoqualmie Ridge. Clearly, the buyers are out!
Fewer Homes for More Buyers
On April 1, 2012 the "Demand Rate" for all single-family homes (including new construction, but excluding condos) at Snoqualmie Ridge stood at .65, from 1.63 at the end of February. This indicates there is now less than one house available to choose from for each potential buyer. The current demand rate, and the sudden drop in inventory compared to pending sales, appears interestingly similar to a wild swing of the Demand Rate in May of 2006 - which was later reversed by a wave of new construction inventory becoming available. In that case, home builders eventually ended up with too much inventory, as they kept building... but then we all know what suddenly happened in 2008.
Should I Buy or Sell Now? Well... the Answer is Possibly Both!
What's interesting at the present time, is while more buyers are out in Snoqualmie Ridge (especially because it's more affordable than other Eastside Seattle areas) less home-owners are willing to list their homes for sale. Understandably, they want to recover what they may have lost in the down-turn. But, this thinking may be somewhat flawed - because unless that potential seller is moving to a much less expensive home, they too will become a buyer, and will ultimately end-up paying more for their next home than they would today - most likely negating any tangible benefit of waiting to sell their current home (assuming they're not "underwater"). Moreover, they risk rising interest rates, which may actually limit their future home buying options, compared to today's market.
So, if you're thinking of selling in Snoqualmie (or anywhere else on the Eastside), let us help you put pencil to paper. Depending on your specific property and your future needs, now may indeed be an ideal time to list your Snoqualmie Ridge home for sale and make your next move.Demand Rate & Statistics for Snoqualmie Ridge April 3, 2012 Single Family Homes, Including New Construction
Demand Rate: .65 - down from 1.63 at end of February (less than one home available for each buyer)
Closings in the previous 30 Days: 18
Average Days on Market: 104
Average Sold Price: $460,135
Median Sold Price: $448,886
Lowest Sold Price: $295,000
Highest Sold Price: $730,000
Active Listings: 49 (18 Resale + 31 New Construction)
Average Days on Market: 86
Average List Price: $431,916
Median List Price: $421,900
Lowest List Price: $272,900
Highest List Price: $689,950
Pending Sales: 75
Average Days on Market: 69
Average List Price: $313,996
Median List Price: $426,376
Lowest List Price: $288,000
Highest List Price: $850,000