Washington

As we slide into the second half of 2024, here’s what you can expect for home prices, mortgage rates, and home sales …

Home prices are expected to climb moderately.

Home prices are forecasted to rise at a more normal pace, according to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR):

“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”

While inventory is up compared to the last couple of years, it’s still low overall. Because there still aren’t enough homes to go around, that will keep upward pressure on prices.

The good news is your clients won’t have to deal with prices skyrocketing like they did during the pandemic. Just remember, prices are not expected to drop. They will continue climbing, just at a slower pace.

Urging your clients to jump into the market sooner than later could save them money.

Mortgage rates are forecasted to come down slightly.

One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down some, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR.

Even a small drop in mortgage rates can make a big difference in buyers’ monthly payments. For sellers, lower rates will bring more buyers back into the market, which can help listings sell faster and, potentially, at a higher price.

Home sales are projected to hold steady.

The number of home sales in 2024 will be about the same as last year, and may even rise slightly depending on your exact location.

The average of the three forecasts in the section above is about 5 million sales in 2024 — a small increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:

“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

This means more people will have the ability to buy a home they love, sell the home they’ve outgrown, create long-term wealth for their family, and, above all else, attain the American Dream.

Real estate offers so much to so many. Let’s work together to make our clients’ goals a reality!

Let’s talk numbers

Active Listings

There was a 37.7% increase in total number of properties listed for sale, with 15,122 active listings on the market at the end of July 2024, compared to 10,982 at the end of July 2023. The number of homes for sale increased throughout Washington, with 25 out of 26 counties seeing a double-digit year-over-year increase. The six counties with highest increases in active inventory for sale were Douglas (+80.8%), Pierce (+51.2%), Walla Walla (+49.6%), Lewis (+49.3%), Snohomish (+47.8%), and Mason (43.7%).

New Listings

NWMLS brokers added 9,281 new listings to the database in July 2024, an increase of 13.1% compared to July 2023 (8,205). The six counties with the largest increase in the number of new listings were San Juan (+56.4%), Walla Walla (+51.7%), Kittitas (+40%), Grant (+34.1%), Douglas (+31%), and Chelan (29.8%).

Closed Sales

July 2024 saw a 5.9% increase in the number of closed sales transactions year-over-year (6,615 in July 2024 compared to 6,247 in July 2023). 19 out of 26 counites saw an increase in the number of closed sales year-over-year, while 7 saw a decrease. The total dollar value of closed sales in July 2024 for residential homes was $5,021,601,655 and was $521,114,121 for condominiums, an increase of 16.4% when compared to July 2023.

Actionable Advice for Washington Agents:

• Stay Updated on Market Trends. Regularly review market reports and trends from trusted industry publications. This market report is a great place to start!
• Enhance Client Relationships. Provide personalized service and maintain regular follow-up.
• Leverage Technology. Use the tools you have to stay in touch with your clients by providing value.
• Master Marketing and Lead Generation. Utilize both online and offline marketing strategies.
• Continuously Educate Yourself. Stay updated on new industry rules and best practices — now more than ever!

Keep charging forward and delivering unparalleled service!