Market Recap
A slight decrease in interest rates has raised cautious optimism – interest rates now sit at around 7.2%, in comparison to 7.8% in October 2023, and a continuation of that decrease would have a positive impact on the market in general. However, the decline in seasonal inventory continues to drive home prices upward, spurring an increase of 4.6% in prices from November 2022:
- NWMLS brokers reported 4,367 closed sales in November 2023, which is a 16% drop from closed sales in November 2022 (5,194). However, this is a slight improvement from October’s year-over-year change in closed sales, which decreased 18% when compared to October 2022.
- While most counties in the NWMLS report (19 of 26) saw a decrease in the number of homes sold, seven of the counties saw a year-over-year increase, including Grant, Okanogan, Kittitas, Walla Walla, San Juan, Adams and Ferry counties.
- The median sales price increased year-over-year in 21 of the 26 total counties included in the statistical report. Overall, the median price for homes sold in November 2023 was $601,341, up 4.6% when compared to November 2022 ($575,000). The three counties with the highest median priced homes sold were San Juan ($975,000), King ($799,925) and Snohomish ($703,635). The three counties with the lowest median priced homes sold were Grant ($327,999), Ferry ($313,750) and Adams ($221,500).
- When compared to the same month last year, November 2023 experienced a 17% decrease in the number of active property listings on the market. The total volume of homes for sale has continued to decline, with 19 out of 26 counties seeing a year-over-year decrease.
Although the number of sales transactions and housing inventory levels typically drop in the fall and winter months, the expected seasonal slow-down continues to be exacerbated by the high interest rate environment for buyers relying on mortgages.
“With the 30-year fixed mortgage rate currently just over 7.2%, the purchasing power of prospective buyers remains stunted relative to a few short years ago,” said Mason Virant, associate director of the Washington Center for Real Estate Research at The University of Washington. “Moreover, current owners with low-rate mortgages continue to be reluctant to sell. This has led to a continued decline in year-over-year transaction volume and the inventory levels in the market.”
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