IHST Puget Sound Market Update - October 2024

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Mortgage rates hit their lowest point since March 2023, with a 30-year fixed rate at 6.28% as of September 24th. This past month?brought a wave of positive trends, including increases in active listings, new listings, and pending sales across the Puget Sound and Greater Seattle areas.?However, while there was more activity, closed sales remained steady.?With the Federal Reserve expected to further lower interest rates, the outlook for buyers looks promising.

Active Listings

The Puget Sound housing market saw a notable boost in available inventory this August, with a 34.1% year-over-year increase in active listings. By the end of August 2024, there were 15,453 active properties for sale, a significant jump from 11,525 at the same time in 2023. This increase was not isolated to just a few areas—25 out of the 26 counties in the NWMLS coverage area experienced double-digit growth in available homes. Biggest Inventory Jumps: The five counties with the highest increases in active listings were Douglas (+65.1%), Mason (+49.2%), Lewis (+49%), Pacific (+48%), and Pierce (+43%).?

Closed Sales

While active listings surged, the number of closed sales remained stable year-over-year. In August 2024, there were 6,727 closed sales, almost identical to the 6,734 closings recorded in August 2023. However, the distribution of closed sales varied across counties.?15 out of 26 counties saw an increase in the number of closed sales year-over-year and 11 saw a decrease.

Median Sale Price?

Home prices continued to climb in most of the region, with the overall median price for residential properties, including condominiums, reaching $645,000 in August 2024. This marks a 4.9% increase from the median price of $615,000 in August 2023, indicating that despite rising inventory, the demand for homes remains strong enough to push prices higher.?San Juan County had the highest median price at $905,000, followed by King County at $860,000 and Snohomish County at $762,500.?

Looking Forward

Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER) at the University of Washington, pointed out that while the recent drop in mortgage rates is good news for buyers, the lack of supply will likely keep prices on the rise. He noted that both single-family and multi-family home building permits dropped significantly in 2022 as interest rates increased, leading to fewer homes being built. This supply constraint is expected to continue impacting prices, even as interest rates fall.?

County Break Down:

Advice for Buyers, Sellers, and Investors: For Buyers: With mortgage rates now at their lowest since early 2023, this is an opportune time to make a move. While inventory is growing, it's still tight in some areas, so act quickly if you find the right home. Locking in a lower interest rate now could save you significantly in the long run, especially as demand for housing remains strong and home prices continue to rise.?

For Sellers: While the market is still favorable for sellers in many areas, homes are beginning to stay on the market longer due to the increase in active listings. This means buyers now have more choices, which could lead to more time before receiving offers. To stay competitive, make sure your home is priced right and in top condition—staging, curb appeal, and minor updates can make a big difference. Even though prices are trending upward, realistic pricing is key to attracting serious buyers quickly.?If you've been thinking about selling, now is still a good time, but expect a longer timeline for offers compared to the fast-paced market of previous years.

For Investors: The current market conditions offer unique opportunities for investors. With inventory on the rise and interest rates dropping, now could be the perfect time to expand your portfolio, especially in areas where demand is high but supply remains tight. Counties with lower median prices might offer a solid return on investment as these areas grow, while more expensive markets like King and Snohomish, continue to deliver steady appreciation. Keep an eye on future Federal Reserve rate cuts, which could further improve financing options for investment properties.

If you are thinking about buying or selling, let us know! We can help you stay informed and make the best decisions for your real estate endeavors. We have the tools and expertise to guide you every step of the way. Contact us for a free consultation!

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