October 2024 Seattle Housing Market Update
Lowered mortgage rates provide boost but affordability remains elusive
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of September):
- The further reduction of interest rates in September by the Federal Reserve provided a positive end-of-the-summer boost to the market. However, without deeper cuts to interest rates, housing affordability will remain an issue for many.
- “Interest rates remain over double what they were just three years ago (6.08% at the end of September versus 3.01% at the same time in 2021 for 30-year fixed rate mortgages).
- The number of homes for sale increased throughout the NWMLS coverage area, with 22 out of 26 counties seeing a double-digit year-over-year increase.
- There was a 31.4% increase in the total number of properties listed for sale.
- Overall, the median price for residential homes and condominiums sold in September 2024 increased 5.8% when compared to September 2023.
To read the full press release, click here.
June 2024 Seattle Housing Market Update
While interest rates remain high, an increase in inventory and closed sales transactions signal that buyers and sellers are adjusting
Here are the bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of May):
- The real estate market has continued to pick up in accordance with typical seasonal patterns, with further increases in activity expected as we move fully into the summer months.
- The overall number of homes sold and the median sales price of those homes increased year-over-year.
- Interest rates have only slightly decreased over the past month, and are right around 7%.
- For-sale inventory levels have increased dramatically year-over-year, which should help to stabilize home prices.
- Across the NWMLS, there was a 41% increase in active property listings compared to June 2023.
- The median sale price for King County was $890,000, up 9% compared to June 2023. The median means that half of all homes sold for less than that price and half sold for more than that price.
To read the full press release, click here.
March 2024 Seattle Housing Market Update
Cautious market optimism as seasonal changes take shape
Here are my bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of February):
- Interest rates ticked back up by about a quarter of a percent to 6.94%. This continues to limit buyer purchasing power and sellers’ desire to sell and give up their own low mortgage rates.
- New listings in King County increased about 34% compared to February of 2023. This is good news for buyers competing for limited inventory.
- Despite the increase in new listings, the number of pending sales in King County didn’t change much, up only about 4% compared to last year, and closed sales saw no change.
- The median price for residential homes and condominiums in King County was up almost 13% year-over-year to $820,000.
- Condos continue to show strong growth in sales, with an area-wide year-over-year increase of more than 9% for units sold. The median sale price of condos increased more than 15% compared to last year.
- Of all the residential homes and condos that closed in King County in February, 34% sold above the list price, indicating multiple offers. About 20% sold at list price, 18% sold below list price, and 28% had a price change before selling.
To read the full press release, click here.
February 2024 Seattle Housing Market Update
Prices and number of sales increased despite reduced inventory
Here are my bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of January):
- Interest rates held steady through the month of January to end at 6.69%.
- The number of closed sales transactions was up 3% year-over-year.
- The median price of single-family homes and condos combined was up 6.5% compared to January 2023.
- The volume of homes on the market for sale has continued to decline throughout Washington. There was a decrease of about 14% compared to January of last year.
- Despite the decrease in available inventory, many areas have seen an increase in the number of homes sold.
- Overall, seller reluctance has led to low inventory levels and, coupled with buyer demand, competition and bidding wars has led to higher prices.
To read the full press release, click here.
January 2024 Seattle Housing Market Update
Signs of optimism despite reduced inventory
Here are my bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of December):
- Interest rates proceeded to drop through the month of December to a current rate of about 6.61%.
- Inventory levels are typically low this time of year. However, they was a 20% decrease in the number of active property listings compared to December 2022. Part of the reason for the low inventory is that current owners with lower mortgage rates are reluctant to sell.
- The low inventory levels continue to keep home prices from falling, and they were actually up about 5% year-over-year.
- Condos seem to be faring better at the moment, with a 6% decrease in the number of sales (compared to 11% for single-family homes), but a 7% increase in median price compared to last year.
To read the full press release, click here.
December 2023 Seattle Housing Market Update
Reduced inventory motivates increased home prices
Here are my bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of November):
- A slight decrease in interest rates has raised cautious optimism – interest rates had fallen to around 7.2% as of December 1, 2023, in comparison to 7.8% in October 2023.
- The decline in seasonal inventory continues to drive home prices upward, spurring an increase of 4.6% in prices from November 2022.
- Closed sales are down about 16% compared to November 2022. This is due to less homes for sale in general.
- Number of sales and housing inventory usually drop in the fall and winter months, but the seasonal trend is lower than usual because of the high interest rates.
- “With the 30-year fixed mortgage rate currently just over 7.2%, the purchasing power of prospective buyers remains stunted relative to a few short years ago.”
- “Current owners with low-rate mortgages continue to be reluctant to sell.”
- Expect new listings to start increasing slowly in the new year. Buyers will beat sellers to the market and be out shopping before the inventory can keep up, increasing competition and prices.
To read the full press release, click here.
October 2023 Seattle Housing Market Update
Indicators point to a continued market slowdown, optimism on the horizon
Here are my bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of September):
- “The real estate market typically slows down in the fall and winter months. However, the high-interest rate environment has further decreased the purchasing power of prospective buyers leading to a continued decline in year over year transaction volume with overall median prices stagnating.”
- When compared to the same month last year, September 2023 experienced a -20% change in active property listings on the market.
- Most counties covered by the NWMLS (23 of 26) saw a decrease in the number of homes sold.
- With mortgage rates at a 23-year high (7.31% for a 30-yr fixed rate mortgage as of 9/28/2023), Freddie Mac indicated more and more buyers and sellers say they are holding out for better circumstances.
- Early in 2023, economists predicted gradual declines throughout the year, but in fact rates have trended higher.
- It is unlikely mortgage rates would drop below 6% before the end of the year, “and most homeowners wouldn’t be motivated to sell unless rates dropped further.”
- A recent study found that 92% of homeowners with a mortgage have a rate below 6%, and nearly a quarter (24%) have a rate below 3%.
- “For buyers who are not in a hurry, the fall and winter months could bring better values and a less competitive environment to find the right home.”
- “Any meaningful decline in mortgage rates could lead to a rush of buyers later in the year and into next.”
To read the full press release, click here.
September 2023 Seattle Housing Market Update
Northwest MLS housing market “still lacks direction”
*NOTE* – the data we are looking at is from the full month of August. The NWMLS comprises 26 of Washington’s 39 counties, mostly in the western part of the state.
Here are my bullet points from the newest press release from the Northwest Multiple Listing Service:
- Prices on homes that sold during August rose 2.5% from a year ago, marking the first year-over-year (YOY) increase since January.
- The number of new listings was down about 17.8% compared to August 2022.
- The number of pending sales during August was down about 25% compared to last year.
- Brokers and other industry-watchers point to upticks in mortgage rates as the culprit for declining sales.
- The average interest rate on a 30-year home loan reached 7.23% as of August 24, the highest rate since 2001, but it subsequently dropped to 7.12% for the week ending September 7.
- Along with forcing buyers to sit on the sidelines, the escalating rates are a deterrent to would-be sellers who bought or refinanced home in recent years and don’t want to swap their 3% rate for a 7% mortgage.
- Active listings at the end of August were down more than 21.5% compared to a year ago.
- Over the next two months home buyers will experience the best selection and availability of homes for sale until March 2024, due to the reduced number of homes that come on the market over the winter months.
- Home prices will rise after the first of the year, particularly in the more affordable and mid-price ranges.
- Inventory levels are still well below pre-pandemic averages, so the market remains tight.
- Some hopeful homebuyers are turning to new construction where some builders are offering discounts or other incentives. About 25% of builders have been cutting prices to bolster sales.
To read the full press release, click here.