Market Update | July 2024
High Interest Rates Still a Problem, but Markets Are Improving
Published August 5, 2024 | Courtesy of NWMLS
Market Recap
High mortgage interest rates continue to be a drag on home sales, discouraging both potential buyers facing high-rate mortgages and would-be sellers wanting to keep their low-rate mortgages. However, there are signs that the housing market is loosening up and that interest rates are declining and likely to decline even further in the coming months. Home sales are up 5.9% year-over-year in the NWMLS market area, and the number of active listings increased 37.7% relative to last year at this time. According to Freddie Mac, 30-year mortgage rates are at their lowest since February 2024 (6.73% as of August 1st).
July 2024 Key Takeaways
Active Listings
There was a 37.7% increase in the total number of properties listed for sale, with 15,122 active listings on the market at the end of July 2024, compared to 10,982 at the end of July 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 six counties with highest increases in active inventory for sale were Douglas (+80.8%), Pierce (+51.2%), Walla Walla (+49.6%), Lewis (+49.3%), Snohomish (+47.8%), and Mason (43.7%).
Closed Sales
July 2024 saw a 5.9% increase in the number of closed sales transactions year-over-year (6,615 in July 2024 compared to 6,247 in July 2023).
19 out of 26 counties saw an increase in the number of closed sales year-over-year, while 7 saw a decrease.
Median Sale Price
Overall, the median price for residential homes and condominiums sold in July 2024 was $650,000, an increase of 5.7% when compared to July 2023 ($615,000).
The three counties with the highest median sale prices were King ($880,000), Snohomish ($775,000), and San Juan ($740,000), and the three counties with the lowest median sale prices were Columbia ($270,000), Pacific ($290,000) and Ferry ($319,900).
“Although the Federal Open Market Committee of the Federal Reserve Bank did not lower rates at its July 31st meeting, it suggested that it might do so in mid-September,” Steven Bourassa, director of the Washington Center for Real Estate Research at the University of Washington, said. ‘“A weak jobs report, largely reflecting a growing labor force, combined with low inflation suggests that the Fed will indeed lower rates next month with additional rate cuts expected at subsequent meetings.”
Active Listings
There was a 37.7% increase in total number of properties listed for sale, with 15,122 active listings on the market at the end of July 2024, compared to 10,982 at the end of July 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 six counties with highest increases in active inventory for sale were Douglas (+80.8%), Pierce (+51.2%), Walla Walla (+49.6%), Lewis (+49.3%), Snohomish (+47.8%), and Mason (43.7%).
Year Over Year Active Listings
Island, King and Snohomish County
New Listings
NWMLS brokers added 9,281 new listings to the database in July 2024, an increase of 13.1% compared to July 2023 (8,205). The six counties with the largest increase in the number of new listings were San Juan (+56.4%), Walla Walla (+51.7%), Kittitas (+40%), Grant (+34.1%), Douglas (+31%), and Chelan (29.8%).
Pending Sales
There were 7,606 total residential units & condo units under contract in July 2024, which was nearly the same (-0.5%) as in July 2023 (7,570). 12 out of 26 counties saw a year-over-year increase in the number of pending listings.
Closed Sales
July 2024 saw a 5.9% increase in the number of closed sales transactions year-over-year (6,615 in July 2024 compared to 6,247 in July 2023). 19 out of 26 counites saw an increase in the number of closed sales year-over-year, while 7 saw a decrease. The total dollar value of closed sales in July 2024 for residential homes was $5,021,601,655 and was $521,114,121 for condominiums, an increase of 16.4% when compared to July 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 (2.29) to sell every home that is active in the NWMLS inventory. The six counties with the lowest months of inventory in July 2024 were Snohomish (1.5), Thurston (1.81), Kitsap (1.88), King (1.95), Pierce (2.08), and Columbia (2.09).
Year Over Year Months of Inventory
Island, King, and Snohomish County
Median Price
Overall, the median price for residential homes and condominiums sold in July 2024 was $650,000, an increase of 5.7% when compared to July 2023 ($615,000). The three counties with the highest median sale prices were King ($880,000), Snohomish ($775,000), and San Juan ($740,000), and the three counties with the lowest median sale prices were Columbia ($270,000), Pacific ($290,000). and Ferry ($319,900).
