Market Update | September 2024
Lowered Mortgage Rates Provide Boost but Affordability Remains Elusive
Published October 3, 2024 | Courtesy of NWMLS
Market Recap
The further reduction of interest rates in September by the Federal Reserve provided a positive end-of-the-summer boost to the market. Double-digit increases in active and new listings and single-digit increases in median home prices demonstrated a tentative balance between the ongoing seller’s market and newfound buyer confidence.
However, experts caution that without deeper cuts to interest rates, housing affordability will remain out of reach for many would-be buyers. “Interest rates remain over double what they were just three years ago (6.08% at the end of September versus 3.01% at the same time in 2021 for 30-year fixed rate mortgages). This continues to have a major impact on affordability,” said Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER) at the University of Washington. “It seems unlikely that the volume of transactions will pick up substantially without some significant improvement in affordability.”
September 2024 Key Takeaways
Active and New Listings
The number of homes for sale increased throughout the NWMLS coverage area, with 22 out of 26 counties seeing a double-digit year-over-year increase.
There was a 31.4% increase in the total number of properties listed for sale, with 15,748 active listings on the market at the end of September 2024, compared to 11,983 at the end of September 2023.
NWMLS brokers added 8,508 new listings to the database in September 2024, , an increase of 12.7% compared to September 2023 (7,551).
The five counties with highest increases in active inventory for sale were Douglas (+67.8%), Pacific (+42.2%), Clallam (+41.6%), Grant (+40.5%) and San Juan (+39.8%).
Closed Sales
The number of closed sales increased by 1.9% year-over-year (5,828 in September 2024) compared to 5,722 in September 2023.
11 out of 26 counties saw an increase in the number of closed sales year-over-year, while 15 saw a decrease.
Median Sale Price
Overall, the median price for residential homes and condominiums sold in September 2024 was $635,000, an increase of 5.8% when compared to September 2023 ($600,000).
The three counties with the highest median sale prices were King ($859,995), San Juan ($829,000), and Snohomish ($760,000), and the three counties with the lowest median sale prices were Ferry ($209,500), Adams ($270,000) and Columbia ($325,000).
Active Listings
There was a 31.4% increase in total number of properties listed for sale year-over-year, with 15,748 active listings on the market at the end of September 2024, compared to 11,983 at the end of September 2023. When compared to last month, active inventory increased by 295 listings (1.9%), up from 15,453 in August 2024.
The number of homes for sale increased throughout the NWMLS coverage area, with 22 out of 26 counties seeing a double-digit year-over-year increase. The counties with highest increases in active inventory for sale were Douglas (+67.8%), Pacific (+42.2%), Clallam (+41.6%), Grant (+40.5%), and San Juan (+39.8%).
Year Over Year Active Listings
Island, King and Snohomish County
New Listings
NWMLS brokers added 8,508 new listings to the database in September 2024, an increase of 12.7% compared to September 2023 (7,551). The six counties with the largest increase in the number of new listings added to the NWMLS database last month were Grant (+42.5%), Douglas (+37%), Jefferson (+32.5%), Clallam (+28.6%), Island (+20.3%), and San Juan (+20%).
Pending Sales
There were 7,165 total residential units & condo units under contract in September 2024, an increase of 13.5% when compared to September 2023 (6,312). When compared to last month, pending sales decreased by 362 transactions (-4.8%), with 7,527 pending sales in August 2024. 19 out of 26 counties saw a year-over-year increase in the number of pending listings, with the highest year-over-year increases in Adams (+57.1%), Douglas (+41.7%), Clallam (+35.2%), Mason (+31.3%), and Pacific (+27.7%).
Closed Sales
The number of closed sales transactions increased by 1.9%year-over-year (5,828 in September 2024 compared to 5,722 in September 2023). 11 out of 26 counites saw an increase in the number of closed sales year-over-year, while 15 saw a decrease. The total dollar value of closed sales in September 2024 for residential homes was $4,177,145,470 and was $414,383,323 for condominiums, an increase of 8.1% when compared to September 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 and a half months (2.70) to sell every home that is active in the NWMLS inventory. The six counties with the lowest months of inventory in September 2024 were Snohomish (1.62), Kitsap (1.93), Thurston (2), Pierce (2.34), Skagit (2.37) and Walla Walla (2.59).
Year Over Year Months of Inventory
Island, King, and Snohomish County
Median Price
Overall, the median price for residential homes and condominiums sold in September 2024 was $635,000, an increase of 5.8% when compared to September 2023 ($600,000). When compared to last month, the median price decreased by 1.55%, from $645,000 in August 2024. The three counties with the highest median sale prices were King ($859,995), San Juan ($829,000), and Snohomish ($760,000), and the three counties with the lowest median sale prices were Ferry ($209,500), Adams ($270,000), and Columbia ($325,000).
