Summary
The housing market is looking a bit better for both buyers and sellers.
- Interest Rates Are Improving: Interest rates proceeded to drop through the month of December to a current rate of 6.61%, with additional rate cuts expected in 2024.
- Sales Prices Finish Up Year-Over-Year: The median price of homes sold increased in 16 of 26 counties and decreased in 10 counties relative to December 2022, with the highest median priced homes sold being in San Juan, King, and Snohomish Counties.
- Limited Inventory Continues: Overall, there was a 20% decrease in the number of active property listings in December 2023 when compared to the same time last year.
- Buyers Remain Hopeful For Increased Selection: As rates continue to drop, potential sellers holding onto low interest rate mortgages may be more willing to sell in 2024.
Details
Interest rates proceeded to drop through the month of December to a current rate of 6.61% from the November level of 7.1%, with the Fed signaling additional cuts on the horizon. Yet inventory remains stagnant in accordance with typical seasonal patterns, and low inventory persisted to pressure home prices in the region, which were up about 5% year-over-year. According to Selma Hepp, chief economist for CoreLogic, “strong home price gains over the course of the year indicate that home prices in most Washington State markets have fully recovered from 2022 losses and are reaching new highs once again.”
CoreLogic’s Home Price Index forecasts another 3.5% appreciation over the course of 2024.
NWMLS brokers reported 4,018 closed sales in December 2023, an 11% drop from the number of closed sales in December 2022. While 16 of 26 counties in Washington experienced year-over-year decreases in the number of home sales, seven counties saw year-over-year increases, including Clallam, Cowlitz, Grant, Adams, Walla Walla, Island, and Kittitas counties.
The median price of homes sold increased in 16 of 26 counties and decreased in 10 counties relative to December 2022. The three counties with the highest median priced homes sold were San Juan County ($1,450,000), King County ($775,000), and Snohomish County ($675,000). The three counties with the lowest median priced homes sold were Okanogan ($275,000), Ferry ($254,900), and Columbia ($152,750).
The inventory of homes on the market has continued to decline throughout Washington, with 15 of 26 counties seeing a year-over-year decrease. Overall, there was a 20% decrease in the number of active property listings in December 2023 when compared to the same month in 2022.
While still subject to inventory shortages, condominium sales appear to be less impacted by market woes. Compared to December 2022, the number of condominium sales in the state experienced a mere 6% decrease, while seeing a 7% increase in median sales price.
“Washington counties covered by NWMLS have followed seasonal trends in transaction volume and inventory levels, both seeing a typical drop when compared to spring and summer months,” said Mason Virant, associate director of the Washington Center for Real Estate Research at The University of Washington. “Inventory levels continue to be low as current owners with low-rate mortgages remain reluctant to sell. This has led to a continued decline in year-over-year transaction volume and inventory levels in the market.”
So how do you navigate this ever changing marketplace? You’ll want a real estate advisor on your side! Whether buying, selling, or investing in real estate, be sure to utilize the expertise, talent, and professionalism of our trusted real estate team. Let us know how we can help you achieve your real estate Wants, Needs, and Dreams.
*Information and statistics compiled and reported by the Northwest Multiple Listing Service.
