Market Update | August 2024
Will Increases in Inventory and Lower Mortgage Rates Ease Affordability?
Published September 5, 2024 | Courtesy of NWMLS
Market Recap
Mortgage rates are at their lowest level since March 2023 (6.35% for a 30-year fixed rate mortgage as of August 29th), and August 2024 reflected year-over-year increases in the number of active listings, new listings and pending sales. At the same time, the number of closed sales year-over-year was virtually unchanged, and median home prices rose in 20 of the 26 counties covered by NWMLS. The Federal Reserve is expected to further reduce interest rates in September, sending encouraging signals to potential buyers.
August 2024 Key Takeaways
Active Listings
There was a 34.1% increase in the total number of properties listed for sale, with 15,453 active listings on the market at the end of August 2024, compared to 11,525 at the end of August 2023.
The number of homes for sale increased throughout Washington, with 25 out of 26 counties seeing a double-digit year-over-year increase.
The five counties with highest increases in active inventory for sale were Douglas (+65.1%), Mason (+49.2%), Lewis (+49%), Pacific (+48%) and Pierce (+43%).
Closed Sales
The number of closed sales remained relatively unchanged year-over-year (6,727 in August 2024 compared to 6,734 in August 2023).
15 out of 26 counties saw an increase in the number of closed sales year-over-year, while 11 saw a decrease.
Median Sale Price
Overall, the median price for residential homes and condominiums sold in August 2024 was $645,000, an increase of 4.9% when compared to August 2023 ($615,000).
The three counties with the highest median sale prices were San Juan ($905,000), King ($860,000) and Snohomish ($762,500), and the three counties with the lowest median sale prices were Ferry ($282,500), Adams ($307,475) and Pacific ($332,500).
“Mortgage interest rates have already started to moderate, dropping to 6.35% (for 30-year terms) at the end of August from this year’s high of 7.22% at the beginning of May,” said Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER) at the University of Washington. “Unfortunately, lack of supply is going to continue to be an issue affecting house prices. Single and multi-family permitting dropped off noticeably in 2022 as interest rates ramped upwards, and single-family home prices will likely continue to increase as interest rates drop.”
Active Listings
There was a 34.1% increase in total number of properties listed for sale, with 15,453 active listings on the market at the end of August 2024, compared to 11,525 at the end of August 2023. The number of homes for sale increased throughout Washington, with 25 out of 26 counties seeing a double-digit year-over-year increase. The five counties with highest increases in active inventory for sale were Douglas (+65.1%), Mason (+49.2%), Lewis (+49%), Pacific (+48%), and Pierce (+43%).
Year Over Year Active Listings
Island, King and Snohomish County
New Listings
NWMLS brokers added 8,941 new listings to the database in August 2024, an increase of 9.7% compared to August 2023 (8,152). The five counties with the largest increase in the number of new listings added to the NWMLS database last month were Ferry (+83.3%), Douglas (+45.5%), Pacific (+43.4%), Clallam (+34.7%), and San Juan (+28.1%).
Pending Sales
There were 7,527 total residential units & condo units under contract in August 2024, an increase of 4.7% when compared to August 2023 (7,189). 13 out of 26 counties saw a year-over-year increase in the number of pending listings, with the highest year-over-year increases in Ferry (+60%), Douglas (+35.1%), Clallam (+33.8%), Walla Walla (+19.6%), Snohomish (+15.2%), and Skagit (+12.5%).
Closed Sales
The number of closed sales remained virtually unchanged year-over-year (6,727 in August 2024 compared to 6,734 in August 2023). 15 out of 26 counites saw an increase in the number of closed sales year-over-year, while 11 saw a decrease. The total dollar value of closed sales in August 2024 for residential homes was $4,922,153,308 and was $497,416,449 for condominiums, an increase of 4.7% when compared to August 2023.
Months of Inventory
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 (2.30) to sell every home that is active in the NWMLS inventory. The six counties with the lowest months of inventory in August 2024 were Snohomish (1.41), Kitsap (1.61), Thurston (1.7), King (2.08), Pierce (2.08), and Skagit (2.23).
Year Over Year Months of Inventory
Island, King, and Snohomish County
Median Price
Overall, the median price for residential homes and condominiums sold in August 2024 was $645,000, an increase of 4.9% when compared to August 2023 ($615,000). The three counties with the highest median sale prices were San Juan ($905,000), King ($860,000), and Snohomish ($762,500), and the three counties with the lowest median sale prices were Ferry ($282,500), Adams (%307,475), and Pacific ($332,500).
