Market Update | December 2024
Mortgage Rate Increase Throws Curveball Into Market
Published January 6, 2025 | Courtesy of NWMLS
Market Recap
Despite hopes among potential home buyers and sellers, as well as economists’ predictions, the Federal Reserve Bank’s three interest rate cuts in 2024 have not led to reduced mortgage rates or a significant boost in the housing market. Instead, as of January 2, 2025, mortgage rates have risen to 6.91%, their highest level since July 2024.
“The 30-year mortgage interest rate was actually higher at the end of 2024 (6.85%) than at the end of 2023 (6.61%),” said Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER) at the University of Washington. He anticipates that mortgage rates will continue to frustrate the market. “We may well be experiencing the pains of adjusting to a new normal, with persistent interest rates of 6% or higher.”
Rising rates have been accompanied by a 4.3% increase in home prices over the past year, further exacerbating affordability challenges. However, the market has shown some signs of increased activity. Active listings and sales transactions were up by 25% and 19.8%, respectively, in December 2024 compared to the previous year, suggesting that buyers and sellers may be adjusting to higher borrowing costs.
While affordability remains a significant concern, these trends point to a gradual adaptation to the evolving landscape of the housing market.
December 2024 Key Takeaways
Active Listings
The number of homes for sale increased 25% year-over-year throughout the NWMLS coverage area, with 21 out of 26 counties seeing a double-digit increase compared to December 2023.
The five counties with the highest increases in active inventory for sale were Snohomish (+46.1%), Douglas (+43.3%), Cowlitz (40.8%), Grant (+39.9%) and Skagit (+38.2%).
Closed Sales
There were 4,812 closed sales of residential homes and condominium units, an increase of 19.8% when compared to December 2023 (4,018).
The total dollar value of closed sales in December 2024 for residential homes was $3,284,574,394 and $409,740,278 for condominiums ($3,694,314,671 in total), an increase of 24.8% when compared to December 2023.
Median Sales Price
The median price for residential homes and condominiums increased by 4.3% year-over-year from $597,975 in December 2023 to $623,500 in December 2024. Prices decreased month-over-month by 3.33% when compared to November 2024 ($645,000).
The three counties with the highest median sale prices were San Juan ($849,500), King ($800,000), and Snohomish ($744,995), and the three counties with the lowest median sale prices were Ferry ($125,000), Adams ($292,300) and Pacific ($320,000).
Active Listings
There was a 25% increase in total number of properties listed for sale year-over-year, with 9,524 active listings on the market at the end of December 2024, compared to 7,617 at the end of December 2023. When compared to last month, active inventory decreased by 3,034 listings (-24.1%), down from 12,558 in November 2024.
The number of homes for sale year-over-year increased throughout the NWMLS coverage area, with 21 out of 26 counties seeing a double-digit year-over-year increase. The counties with highest year-over-year increases in active inventory for sale were Snohomish (+46.1%), Douglas (+43.3%), Cowlitz (+40.8%), Grant (+39.9%), Skagit (+38.2%), and King (+33.8%).
Year Over Year Active Listings
Island, King and Snohomish County
New Listings
NWMLS brokers added 3,166 new listings to the database in December 2024, an increase of 9.8% compared to December 2023 (2,884). When compared to last month (November 2024), new listings decreased by 33.6%, when 4,768 listings were added to the NWMLS database.
The six counties with the largest increase in the number of new listings added to the NWMLS database last month were Lewis (+52.5%), Chelan (+38.7%), San Juan (+25%), Snohomish (+20.3%), Cowlitz (+19.6%), and King (+18.5%).
Pending Sales
There were 4,312 residential units & condo units under contract in December 2024, an increase of 5.2% when compared to December 2023 (4,098). When compared to last month, the number of pending listings decreased by 21.8%, down from 5,516 listings under contract in November 2024.
17 out of 26 counties saw a year-over-year increase in the number of pending listings, with the highest year-over-year increases in Clallam (+86.5%), San Juan (+50%), Jefferson (+50%), Ferry (+50%), Mason (+47.5%), and Skagit (+39.1%).
Closed Sales
The number of closed sales increased by 19.8% year-over-year (4,812 in December 2024 compared to 4,018 in December 2023). 20 out of 26 counites saw an increase in the number of closed sales year-over-year. The total dollar value of closed sales in December 2024 for residential homes was $3,284,574,394 and was $409,740,278 for condominiums ($3,694,314,671 in total), an increase of 24.8% when compared to December 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 less than two months (1.98) to sell every home that is active in the NWMLS inventory. The six counties with the lowest months of inventory in December 2024 were Snohomish (1.09), Kitsap (1.51), Thurston (1.58), King (1.63), Pierce (1.75), Clallam (2.01), and Skagit (2.05).
Year Over Year Months of Inventory
Island, King, and Snohomish County
Median Price
Overall, the median price for residential homes and condominiums sold in December 2024 was $623,500, an increase of 4.3% when compared to December 2023 ($597,975). When compared to last month, the median price decreased by 3.33%, from $645,000 in November 2024.
The three counties with the highest median sale prices were San Juan ($849,500), King ($800,000), and Snohomish ($744,995), and the three counties with the lowest median sale prices were Ferry ($125,000), Adams ($292,300), and Pacific ($320,000).
