IHST Puget Sound Market Update - September 2024 (In October 2024)

IHST Puget Sound Market Update - September 2024 (In October 2024)

IHST Puget Sound Market Update - September 2024 (In October 2024)


The housing market is starting to show signs of loosening up despite the ongoing challenge of high mortgage interest rates. These elevated rates have been discouraging both potential buyers and sellers, with many homeowners reluctant to give up their low-rate mortgages. However, there's a glimmer of hope on the horizon as interest rates have begun to decline, and more decreases are expected in the coming months.

Home Sales: Sales are on the rise, with a 5.9% year-over-year increase in closed transactions. In total, 6,615 homes were sold in July 2024, up from 6,247 in July 2023. The majority of counties (19 out of 26) reported a growth in sales.

Active Listings: The number of homes available for sale also surged, with a 37.7% increase in active listings compared to the same time last year. As of the end of July 2024, there were 15,122 properties on the market, a significant jump from the 10,982 active listings in July 2023. Notably, counties like Douglas, Pierce, and Snohomish saw the highest increases in inventory, indicating a broader availability of homes for buyers.

Median Sale Price: Home prices continue to rise, with the median sale price of single family and condo sale prices across the NWMLS in July 2024 hitting $650,000, reflecting a 5.7% increase from July 2023's median of $615,000. King, Snohomish, and San Juan counties recorded the highest median sales prices.


Interest Rates and Predictions

According to Freddie Mac, 30-year mortgage rates have dropped to their lowest since February 2024, currently averaging 6.35%. This is a considerable decline from the 7.18% rates seen last year. Economists predict further rate reductions, which could potentially reignite buyer interest as borrowing costs decrease.

Experts from the University of Washington and Freddie Mac are optimistic about the future, suggesting that if the Federal Reserve lowers rates as expected in mid-September, we could see more robust market activity. Lower mortgage rates mean significant savings for buyers—at the current rate, a $400,000 home could come with a monthly payment of $1,991, assuming a 20% down payment. This is a substantial improvement compared to what buyers faced a year ago.


County Breakdown



Advice for Buyers and Sellers

For Buyers: Given the current market conditions, patience and careful planning are key. The increase in inventory means there are more options available, which can be advantageous. However, even with mortgage rates relaxing, your purchasing power may be less than expected. With that said, if rates decrease in the future, refinancing could be an option, so don't let the current rates deter you if you find the right home.

For Sellers: With the inventory on the rise, competition is increasing. It's important to work with your agent to set a realistic price that reflects current market conditions and attracts serious buyers. Overpricing a home can deter potential buyers, causing the property to sit on the market longer, which can lead to price reductions and a weaker negotiating position. Conversely, pricing a home competitively from the start generates interest and can create a sense of urgency among buyers, potentially leading to multiple offers and a quicker sale.

For Investors: The market presents both opportunities and challenges for investors. Increased inventory and stabilizing prices can offer good entry points, but high mortgage rates might impact profitability. Consider targeting areas with low inventory months and strong price appreciation, like the Seattle metro area, to maximize rental income and property value growth. With the market moving towards normalization, a long-term investment strategy can help weather short-term fluctuations in mortgage rates and property prices.  If you are thinking about buying or selling, let us know! We can help you stay informed and make the best decisions for your real estate endeavors. We have the tools and expertise to guide you every step of the way. Contact us for a free consultation!


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