As autumn approaches, we’re observing a downtrend in transactions across various Washington counties. The year-over-year median prices, meanwhile, show a slight uptick.
Compared to September 2022, this September has seen a decrease of 20% in active property listings across the Washington counties represented by the NWMLS. Of the 26 counties under NWMLS, a significant 23 have reported a reduction in home sales, with fluctuations between -2% to a sharp -50%. On average, we’re seeing a -24% drop, though one county remained consistent with last year’s figures. Analyzing the median home prices, they rose in 15 counties, dipped in 9, and stayed steady in 2, when juxtaposed with last year’s statistics.
Mason Virant from The University of Washington’s Washington Center for Real Estate Research highlighted, “While a deceleration in the real estate market is common during the fall and winter, the prevalent high-interest rates have further curbed potential buyers’ purchasing capacities. This has led to a recurring dip in transaction volumes year over year, with median prices plateauing.”
Though rising mortgage rates might hamper further growth in home prices, there’s a silver lining for sellers. Given the prevailing market conditions, they can expect more favorable opportunities in the coming year.
Selma Hepp from CoreLogic provided insight, suggesting, “Given the existing low stocks coupled with latent demand, we can anticipate a sustained pressure on home prices, potentially resulting in a 5% increase by the next September.”
Echoing a sense of hope, NWMLS’s President and CEO, Tom Hurdelbrink, pointed out that despite the hiked interest rates, the consistent increase in home values over past years is evident. He commented, “Post-pandemic, after grappling with considerable inflation and surging interest rates for a year, we’re possibly entering a transition phase. The indicators hint at a more even-handed market in the foreseeable future.”