July 2024 Housing Market Update for Western Washington’s Puget Sound Region

The Goelzer Home Team
Published on July 23, 2024

Summary

Increasing inventory may help stabilize our real estate market.

  • Available Inventory Continues to Increase: Year-over-year for-sale inventory levels have increased dramatically relative to June 2023 (up 35.7%), at  just over two months (2.17) of available inventory for sale.
  • Prices Increase, but Slower: The median price for residential homes sold in June 2024 was $675,000, an increase of just over 4% compared to June 2023 ($647,000).
  • Interest Rates Have Dropped Slightly: As of late June, the 30-year fixed mortgage rate averaged 6.86% and is projected to possibly decrease a bit more by the end of the year.
  • Keep in Mind: Declining interest rates may create some unexpected market activity. As rates lower, more buyers are likely going to re-enter the market, causing additional competition and yes, likely higher prices.
  • The Good News: Additional inventory just may provide some relief, slowing the pace of rising home prices.

Details

Washington counties covered by NWMLS continue to follow seasonal trends with respect to inventory levels yet divert from typical patterns with regard to transaction volume.

With the 30-year fixed mortgage rate currently at 6.86% (as of late June 2024), the purchasing power of prospective buyers remains constrained relative to a few years ago. Year-over-year for-sale inventory levels have increased dramatically relative to June 2023 (up 35.7%). Year-over-year closed sales transactions decreased by 3.1%, signaling that despite recent decreases in interest rates, buyers may be slightly less active when compared to June 2023. Higher levels of for-sale inventory should have an impact in stabilizing price levels over the summer months.

The median price for residential homes and condominiums sold in June 2024 was $650,000, an increase of 4% compared to June 2023 ($625,000). Looking at just single-family residential homes, the median price in June 2024 was $675,000, an increase of just over 4% compared to June 2023 ($647,000)

The three counties with the highest median sale prices were San Juan ($950,000), King ($875,000), and Snohomish ($789,497). The three counties with the lowest median sale prices were Columbia ($274,000), Adams ($236,000), and Ferry ($175,000).

There was a 35.7% increase in the total number of properties listed for sale, with 14,393 active listings on the market at the end of June 2024, compared to 10,607 at the end of June 2023.

The number of homes for sale increased throughout Washington, with 22 out of 26 counties seeing a double-digit year-over-year increase.

There were 7,650 total residential units & condo units under contract in June 2024, a slight decrease of 1.4% when compared to June 2023 (7,759). 10 out of 26 counties saw a year-over-year increase in the number of pending listings.

The six counties with highest increases in active inventory for sale were Douglas (+77.2%), Pierce (+48%), Clark (+46.9%), Snohomish (+46.2%), Lewis (+45.2%), and King (+43.3%).

For Washington counties covered by NWMLS, June 2024 saw a 3.1% decrease in closed sales transactions year-over-year, a reversal in trends from April and May 2024, which saw positive increases in year-over-year transaction volume (9.5% and 6%, respectively).

A balanced market is considered to be 4 to 6 months by most industry experts. At the current rate of sales, it would take a little over two months (2.17) to sell every home that is active in the NWMLS inventory. The five counties with the lowest months of inventory in June 2024 were Snohomish (1.37), Thurston (1.55), Kitsap (1.60), King (1.94), and Pierce (2.00).

CoreLogic Chief Economist Selma Hepp says the Pacific Northwest housing market is moving slowly toward normalization. “While increased inventory of homes on the market this spring offered potential home buyers more options, elevated mortgage rates put affordability at the forefront of housing market concerns,” Hepp said. “Home prices did heat up again this spring in the Seattle metro area, putting the region among the strongest appreciating markets across the country. More inventory will slow pressure on home prices over time.”

For all your real estate goals, be sure to utilize the expertise, trustworthiness, and professionalism of our 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.

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