After the roller coaster of the past few years, we have more good news to report for local homeowners. On average, Snoqualmie Ridge home prices have generally recovered from their low points.
As shown in the chart below, buyers have exceptionally few choices on the Ridge, with only 11 resale homes for sale on March 31st, a 68% decrease compared to March of 2014. During February, 25 new listings came up for sale, and 32 went pending, as buyers snapped-up not only most of the new listings, but also older inventory. So far, this trend has continued into March & April – though quite a few homes have home come up for sale in the past seven days.
Clearly, the current market at Snoqualmie Ridge is decidedly in favor of the seller. And particularly with sellers not having to compete for attention with new construction for the time being, resale homes should continue to sell at a good pace for the remainder of the spring & summer 2015 seasons.
Resale Home Prices Continue to Climb
When looking at median and average prices for Snoqualmie Ridge resale homes, it would appear that prices have returned to a previous all-time high, matching or slightly exceeding a few months between March of 2006, and March of 2007. The median price for resale single-family homes ending the 1st Quarter March 2015 was $547,000, which is the highest quarter in 10 years – $3,000 higher than the same quarter ending March 2007 at $544,000. However, this is for resale homes only.
During the one-year peak of new construction prices in March ‘06 to March ‘07, new homes were selling at a median price between $610K to $680K. New homes which were purchased during that period, and owned by the original buyers, in most cases still have some recovery time remaining before matching previous sales prices.
Premium Lots & Luxury Homes
Of special note, are homes located directly on the golf course, greenbelts, or neighborhood perimeters, and luxury homes. As is the case in most developments in any locality, these homes usually sell at a premium. In difficult markets, the value of these homes tends to fall more drastically, and they’re typically the last to fully recover. However, assuming prices continue to increase, these homes should ultimately sell at a premium once again – as has been the case with a number of recent sales.
Record Low Inventory
Snoqualmie Ridge is presently experiencing record-low inventory, which will directly impact prices as in some cases, buyers battle to “win” in multiple offers. At the end of March, the Ridge had just shy of 2-weeks worth of resale inventory, the lowest level in 10 years.
The same is true across the entire Seattle metro area. In fact, recent reports place certain areas of Seattle on par with the San Francisco housing market. Homes in some core areas of Seattle are being drastically bid up – sometimes to 20% or more above the asking price.
Of course, this is not the case for areas of the Snoqualmie Valley. However, such market activity nearby has a direct impact on our local real estate market, both in terms of buyer behavior and increasing demand, as buyers search for less expensive homes away from the highly competitive areas where “cash is king.”
The current market is especially difficult to navigate for buyers, but sellers also face numerous challenges, both in determining the best marketing strategies, and avoiding significant risks when working with multiple offers.
Thinking of buying or selling soon, or just have questions about the local real estate market? Contact us today to learn how we can help.
Anthony Gilbert, REALTOR® – is a Snoqualmie Valley resident, and Real Estate Agent with Coldwell Banker Danforth, serving the communities of Snoqualmie, North Bend, Fall City, Issaquah & Sammamish.