Market Update and Trends for Puget Sound Housing Market - June 2024. Aaron Miriello- Prime Northwest Homes, brokered by eXp Realty

by Aaron Miriello

Today we're going to talk about some crucial market updates and trends that are affecting the Puget Sound housing market. We will be reviewing June's data. I am Aaron Miriello, your host, joined by top agent in this area, serving both Greater Seattle and South Sound. 🏡

Market Recap

In June 2024, most Washington counties recorded a major increase in inventory levels estimated at 35.7% year-over-year. 📈 Volumes, however, fell 3.1%, indicative of suppressed buying power, with buyers hesitant to commit to the market as mortgage rates wobbled between 6.8% and 7.1%. Buyers are either adjusting their price range, looking for different property conditions or locations, or taking a break from the market altogether, which is understandable given the circumstances. 📉

Key Takeaways from June 2024

Median Sales Price:

The median price for homes and condos was $650,000, an increase of 4% from June 2023. 💵 In layman's terms, if you waited one year you just paid $26,000 more for the same house. Prices have increased with the limited supply and high demand, even with high mortgage rates. As more homes come into the market for sale, prices could stabilize—though strong demand and low affordability will keep them at high levels. If mortgage rates fall further, more buyers will come into the market, which should raise competition.

Active Listings:

Listings increased, showing a big seasonality effect of buying and selling as sellers try to cash in on high prices and equity gains. 📊 This is expected to carry through to 2025 with greater availability for buyers and pricing perhaps reined in somewhat as mortgage rates lose some luster.

Closed Sales Transactions:

Closed sales transactions, year-over-year, truly went in the wrong direction from April/May 2024 by decreasing 3.1%. 📉 This is a sure sign buyers are getting spooked at higher mortgage rates and affordability challenges. A cautious recovery in transaction volume is expected through 2025, influenced by economic conditions and political uncertainties, including the presidential election in November 2024.

Months of Inventory:

Currently at 2.17 months, indicating a seller's market. 🏘️ The lowest inventory is in Snohomish (1.37), Thurston (1.55), and Kitsap (1.60). The current inventory level shows high demand and relatively low supply. Active listings that are rising do reflect a move towards a balanced market by 2025, assuming steady economic conditions with only small rate drops. This balance would help to stabilize home prices while reducing extreme competition among buyers.

Conclusion

All of these data indicate a return toward normalization in the Puget Sound real estate market. There is increased inventory, which gives more choices for the buyer, but high mortgage rates still affect affordability. Yet Seattle metro home prices continue strong, and increasing inventory is expected to slow price pressures further over time. If there's a rate cut in September or October, that might extend opportunities for buyers. The real estate season starts to slow down around the second week in September. 📆

If you have any questions or need more insights, please get in touch. Let's walk through this market and bring out the best opportunities for you! 🤝