Summary
No surprise… high interest rates continue to impact overall home sales.
- Interest Rates May Have Reached Their Peak: While market corrections can happen at any time, the latest news points toward calming interest rate hikes.
- Price Reductions Are Here: Over the past few weeks, the number of listed homes with price reductions has been nearly equal to the number of new homes being listed.
- Fewer Sales Occurring: Similar to last month, 24 of the 26 counties covered by the NWMLS saw a decrease in the number of homes sold. Low inventory, high interest rates and typical PNW seasonality are definitely playing a role.
- How’s 2024 looking?: Still too early to tell. Interest rates may have reached their peak, so this could be good news for both buyers and sellers as we head into the new year.
Details
Further increases in interest rates continue to influence the expected seasonal slowdown during fall and winter months.
Most counties covered by NWMLS (24 of 26) saw a decrease in the number of homes sold with an average decline of 18%.
The median price of homes sold declined in 11 out of 26 counties, increased in 14, and remained virtually unchanged* in one county relative to October 2022.
The three counties with the highest median priced homes sold were San Juan County ($1,150,000), King County ($800,000) and Snohomish County ($700,322); the three counties with the lowest median priced homes sold were Grays Harbor ($325,000), Ferry ($177,500), and Columbia ($110,000)
The volume of homes on the market has continued to decline throughout Washington with 20 out of 26 counties seeing a year over year decrease in the number of homes on the market. When compared to the same month last year, October 2023 experienced a 20% decrease in active property listings on the market in Washington counties covered by the NWMLS.
“With the 30-year fixed mortgage rate currently just shy of 8%, the purchasing power of prospective buyers has weakened further,” said Mason Virant, associate director of the Washington Center for Real Estate Research at The University of Washington. “This has led to a continued decline in year-over-year transaction volume with overall median prices increasing by only 1% across counties covered by the NWMLS.”
The real estate market continues to be challenging to navigate… limited inventory and high interest rates continue to keep inventory levels low and prices relatively stable. Over the past year, interest rates have increased quickly. Do not expect these same rates to decrease at the same rate or even to the same levels previously experienced. The housing market will continue to be challenging over the coming months and likely for the next few years.
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.
