Market Update | May 2024
While Interest Rates Remain High, an Increase in Inventory and Closed Sale Transactions Signal that Buyers and Sellers are Adjusting
Market Recap
The real estate market has continued to pick up in accordance with typical seasonal patterns, with further increases in activity expected as we move fully into the summer months. The overall number of homes sold and the median sales price of those homes increased year-over-year. Interest rates have only slightly decreased over the past month, by 0.14 percentage points, to 7.03%. This means that prospective buyers’ purchasing power and prospective sellers’ willingness to give up their low interest rate mortgages continues to be constrained. However, for-sale inventory levels have increased dramatically year-over-year, which should help to stabilize home prices.
May 2024 Key Takeaways
Washington counties covered by NWMLS saw an overall increase of 7% in the median price of sold homes. The median sale price increased in 17 out of 26 counties, decreased in eight counties, and remained unchanged in one county (Grant) relative to May 2023.*
The three counties with the highest median sale prices were King ($890,000), Snohomish ($785,000) and San Juan ($744,500). The three counties with the lowest median sale prices were Okanogan ($302,000), Columbia ($275,000) and Ferry ($171,500).
Washington counties covered by NWMLS saw an overall increase of 6% in the number of closed sales transactions compared to May 2023. Twelve of the 26 counties covered by NWMLS in Washington saw an increase in the number of homes sold year over year, while 13 saw a decrease. Cowlitz county’s year-over year sales were unchanged.*
The number of homes on the market increased throughout Washington with 24 out of 26 counties seeing a year-over-year increase. Overall, there was a 41% increase in active property listings in Washington counties covered by NWMLS.
The total number of condominium units for sale has increased by 70% year-over-year, with 2,071 actively listed units at the end of May. The median sales price for the 942 condominiums sold during May 2024 was $529,475, an increase of 11.5% year over year.
*Unchanged refers to a less than 0.5% change in median price or transaction volume.
Consumer and Broker Activity
NWMLS also provided insights into consumer activities during the month of May 2024:
The total number of property showings scheduled through NWMLS-provided software increased by 5% from April 2024 (122,975 showings) to May 2024 (128,924 showings).
Keyboxes located at listed properties were accessed 163,414 times in May 2024, a 7% increase from activity in April 2024 when they were accessed 152,999 times.
Brokers seeking to further assist consumers as they navigate the market are making special note of properties that are eligible for the Down Payment Resource (DPR) program offered by NWMLS. In May 2024, there were 15,155 listed properties that were eligible for this program.
“With the 30-year fixed mortgage rate currently at 7.03% as of late May 2024, the purchasing power of prospective buyers remains constrained relative to a few years ago,” said Steven Bourassa, Director, Washington Center for Real Estate Research. “Year-over-year inventory levels have improved dramatically relative to May 2023, increasing by 41%. The number of year-over-year closed sales transactions saw a 6% increase, signaling that buyers and sellers are beginning to adjust to the higher interest rate environment. Higher levels of for-sale inventory should have an impact in stabilizing price levels over the summer months.”
Active Listings
There was a 41.4% increase in total number of properties listed for sale, with 12,837 active listings on the market at the end of May 2024, compared to 9,079 at the end of May 2023. The number of homes for sale increased throughout Washington, with 24 out of 26 counties seeing a year-over-year increase.
Year Over Year Active Listings
Island, King and Snohomish County
New Listings
NWMLS brokers added 11,572 new listings to the database in May 2024, an increase of 25% compared to May 2023. The four counties with the largest increase in the number of new listings were Columbia (+150%), followed by Douglas (+79%), Lewis (+36%), and King (+34%).
Pending Sales
There were 8,220 total residential units & condo units under contract in May 2024, an increase of 1.2% when compared to May 2023 (8,120). The five counties with the largest increase in the number of pending sales were Douglas (+68%), Kittitas (+37%), Clark (+24%), Chelan (+17%), and Kitsap (+14%).
Closed Sales
May 2024 saw a 6% increase in the number of closed sales transactions year-over-year. The five counties with the largest increase in the number of closed sales were Okanogan (+41%), Douglas (+23%), King (+17%), Ferry (+14%), and Pacific (+14%). The total dollar value of closed sales for residential homes for this month was $5,032,984,796 and was $584,625,883 for condominiums.
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 to sell every home that is active in the NWMLS inventory. The five counties with the lowest months of inventory in May 2024 were Snohomish (1.16), King (1.55), Pierce (1.67), Thurston (1.73), and Kitsap (1.81).
Year Over Year Months of Inventory
Island, King, and Snohomish County
Median Price
Overall, the median price for residential homes and condominiums sold in May 2024 was $660,000, up over 7% when compared to May 2023 ($615,000). The three counties with the highest median sale prices were King ($890,000), and Snohomish ($785,000), San Juan ($744,500), and the three counties with the lowest median sale prices were Okanogan ($302,000). Columbia ($275,000), and Ferry ($171,500).
