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It is a new year, and the stats for the second month of 2024 are in. Northwest MLS key metrics for February 2024 activity, including new and active listings and pending and closed sales, show that the real estate market has remained slow. Unjustified optimism remains about a persistent decline in mortgage interest rates. I expect us to experience a see-saw of lending rates throughout 2024, and then perhaps they will settle somewhere between 5% and 6%. We must not forget that too many factors, the least of which are not geo-political conflicts, could significantly alter these predictions.
For the Washington counties covered by NWMLS, February 2024 saw a nearly 2% decrease in closed sales transactions year over year, although median prices have continued to rise, with a nearly 6% increase year over year.
Essential takeaways from January’s data:
- The median sales price of homes increased in 19 out of 26 counties and decreased in 7 counties relative to February 2023. The three counties with the highest median sale prices were King ($820,000), Snohomish ($715,000), and San Juan ($671,000).
- The number of homes on the market increased throughout Washington with 17 out of 26 counties seeing a year-over-year increase.
- Ten of the 26 counties included in the report saw an increase in the number of homes sold year-over-year, while 14 counties saw a decrease in the number of homes sold year-over-year. Two counties, King and Pacific, saw relatively no change in the number of year-over-year sales transactions.
- Condominium sales continue to show strong growth throughout the NWMLS service areas, with 636 units sold in February 2024, a year-over-year increase of more than 9%. The median sale price of condominiums increased more than 15% year-over-year, from $430,000 at the end of February 2023 to $496,500 in February 2024. This is primarily due to the price range and affordability factors.
I believe that current homeowners who are aptly not eager to sell their homes because they have mortgages well under 4%, some even less than 3%, will remain a significant factor in inventory shortage for some time.
Any significant price increase remains unrealistic. While we may get a more balanced real estate market in the next three to five years due to mortgage lending rates remaining much higher than in recent years, home prices will likely continue to slide in the foreseeable future.
A monthly market snapshot by NWMLS helps you stay better informed. Whether buying or considering putting your home on the market, the most important tool is current, accurate, and relevant information. You will find that information in most current real estate stats. If you need specific information about your neighborhood or the one you may be considering living in and don’t see it here, reach out, and we will get it for you.
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