Lowered mortgage rates provide boost but affordability remains elusive
Northwest MLS, the source for the most current, accurate market listing data in Washington state, today released its Market Snapshot for the month of September 2024.
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).
Consumer and Broker Activity
NWMLS also provided insights into consumer activities during the month of September 2024:
- The total number of property showings scheduled through NWMLS-provided software remained steady, with 119,927 showings in August 2024 and 119,900 in September 2024.
- In September 2024, there were 16,668 listed properties that were eligible for the Down Payment Resource (DPR) program offered by NWMLS.
Individual Market Analysis for Eastside Cities (Live Statistics):
Sammamish:
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- Active Listings: Significant year-over-year increase in active listings.
- New Listings: Higher number of new listings added in June 2024 compared to last year.
- Pending Sales: Stable pending sales indicating steady buyer interest.
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Redmond:
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- Active Listings: Increase in the number of properties listed for sale.
- New Listings: A notable rise in new listings, reflecting active seller participation.
- Pending Sales: Slight decrease in pending sales, possibly due to fluctuating mortgage rates.
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Bellevue:
- Active Listings: Substantial increase in active listings year-over-year.
- New Listings: A significant influx of new listings in June 2024.
- Pending Sales: Stable pending sales, showing consistent buyer interest.
Mercer Island:
- Active Listings: Increase in the number of active listings.
- New Listings: Higher number of new listings indicating seller confidence.
- Pending Sales: Slightly lower pending sales, influenced by market conditions.
Kirkland:
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- Active Listings: Growth in the number of active listings.
- New Listings: Increase in new listings compared to last year.
- Pending Sales: Stable pending sales, with consistent market activity.
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Buyers:
Act Quickly: Given the low inventory and high competition, it's crucial to move quickly when a desirable property becomes available.
Prepare Financially: Ensure your financing is pre-approved and be prepared to offer above the asking price in highly sought-after areas like Bellevue and Redmond.
Start Your Home Search Here
Sellers:
- Leverage the Market: The current market conditions favor sellers. With high demand and low inventory, you can expect to sell your property quickly and potentially above the listing price.
- Enhance Property Appeal: Invest in staging and minor renovations to make your property stand out and attract competitive offers.
Our Listing Process
With Shane & Anne, our mission is to prioritize our clients in every aspect of the real estate journey. We are committed to providing exceptional service and expertise in the luxury real estate market. Guided by our core values, we strive to build lasting relationships based on trust and mutual respect.
Our Core Values:
- Loyalty: We are unwavering in our commitment to our clients, always putting their needs and interests first.
- Honesty: We operate with the highest level of integrity, providing truthful and transparent communication at every step.
- Confidentiality: We respect our clients' privacy and handle all transactions with the utmost discretion.
We are committed to staying ahead of market trends and continuously enhancing our skills and knowledge to deliver unparalleled results. Our goal is to make the real estate experience as smooth and rewarding as possible, ultimately helping our clients achieve their real estate dreams.
*Information derived from the Northwest Multiple Listing Service