SNOHOMISH COUNTY MARKET UPDATE
1. RESIDENTIAL ACTIVE LISTINGS (YOY)
Inventory continues to build compared to last year, giving buyers more options and creating a more balanced market.
2. NEW LISTINGS (YOY)
More sellers are entering the market compared to this time last year, adding to available inventory.
3. MONTHS OF INVENTORY (YOY)
Months of inventory shows how long it would take to sell all active listings at the current sales pace.
A balanced market is typically 4–6 months of inventory.
4. MEDIAN SALE PRICE (YOY)
Median sale price has softened slightly compared to last year, reflecting higher rates and increased inventory.
5. MORTGAGE RATES (YOY)
Higher mortgage rates continue to impact affordability and buyer demand.
Monthly payment on median-price home ($724,500 with 20% down)
6. NOTABLE COMMERCIAL SALE
Notable sale activity as of late September 2026
Bank of America building at 501 N Olympic Ave, Arlington
Listed for $3 million; sold for $2.1 million
7,124 sq ft on 0.63 acres
New HVAC and roof
Owner-operator purchase
Full details available upon request.
7. LEGAL & GOVERNMENT WATCH
The Federal Opportunity Zone program is transitioning to a permanent “OZ 2.0” starting January 1, 2027. See IRS Notice 2026-40.
Key points for 2026 deals
- Deferred gain(s) from the old program generally must be recognized by December 31, 2026.
- New zone designations take effect January 1, 2027.
- Practical takeaway: anyone holding a 2026 gain, a pending 1031/OZ structure, or a project in a current Snohomish County OZ tract needs a year-end plan locked before December 31.
8. POTENTIAL OPPORTUNITY
We see the potential for land purchases at noticeable discounts. Inventory has risen fairly dramatically, so well-positioned land with improved zoning can have notable upside.
9. Scott’s Perspective
Market thoughts.
Well — the verdict is in; even the biggest proponents have to admit we are facing notable weakness across the residential sector. Inventory up 40% YOY; new listings up 14.3%; and median sale price down 4%. Add on that the 10-year Treasury (which sets mortgage rates) is at historical highs. It’s hard to make an argument for a short-term turnaround at this point.
Why it matters.
A more balanced market creates opportunities for well-prepared buyers and positions strong properties to stand out. Land-use changes and housing reforms continue to create long-term opportunities, but selectivity is advised for buyers and investors. We believe opportunities are forthcoming.
What we are watching.
We continue to look most closely at inventory numbers. Unless we have an uptick in purchasing, which we think will be challenging with rates where they are, inventory will steer the pricing ship. Based on ATTOM stats, YOY pre-foreclosure numbers are up 21% nationwide. Unfortunately, we expect that trend to continue and to see more of that locally.
President | Broker, Weitz Commercial
206.306.4034 | scott@weitzcommercial.com
Weitz Commercial is a full-service commercial real estate firm focused on helping clients navigate opportunities and solve problems.
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