Snohomish County home sales surge amid rising prices

Snohomish County is witnessing a resurgence in home sales as of June 2024, following a decline throughout 2023. This uptick comes despite a mixed performance in price growth across different housing types. While single-family homes and condominiums have reached their highest recorded median prices in 24 years, townhomes have yet to surpass inflation-adjusted levels from 2022.

Despite the increase in prices, actual sales of these units hit one of their lowest points last year. The annualized 30-year fixed mortgage rate stood at 0.682% in June, reflecting only a slight increase. However, interest rates have not significantly impacted the rising income requirements for potential homeowners in the county.

Looking ahead, potential rate cuts anticipated in the fall could introduce uncertainty for the latter half of 2024 and early 2025. Experts suggest that a reduction in rates may accelerate home sales, potentially driving prices higher, even if the required income remains stable. Conversely, a surge in buying activity triggered by lower rates could lead to a spike in required income levels.

Overall, Snohomish County continues to grapple with a cycle of increasing income requirements and housing scarcity, complicating the landscape for prospective buyers.