Washington Housing Market Update: July 2024 Insights

Washington Housing Market Update: July 2024 Insights

The Washington housing market has seen notable developments over the past two weeks. From fluctuating interest rates to changes in inventory levels, these trends are crucial for homebuyers, sellers, and referral partners to understand. This post will provide a comprehensive overview of the current state of the market and what to expect moving forward.

1. Market Overview

The Washington housing market remains competitive, with home prices continuing to rise and inventory levels remaining low. Here are the key indicators:

Key Takeaways for Washington:

• Median Home Price: $617,700 (up 11.6% YoY)
• Inventory Level: 2 months
• Median Days on Market: 31 days
  

As of July 18, 2024, the average 30-year fixed mortgage rate in Washington is 6.77%, while the average 15-year fixed mortgage rate is 6.05%  based on Freddie Mac’s market research.

Despite high interest rates, the demand for homes in Washington remains strong, driven by the state’s economic stability and attractive living conditions.

2. Recent Trends and Developments

Rising Home Prices

Home prices in Washington have seen a significant increase over the past year. The median home price rose by 11.6%, indicating a robust market despite the challenges posed by high interest rates.

Inventory Levels

Inventory levels remain low, with only 2 months of supply available. This shortage continues to drive up prices and create a competitive environment for buyers.

Sales Activity

Sales activity has also increased, with a 28% year-over-year rise in home sales. This surge is partly due to the influx of new listings, which rose by 20.2% year-over-year.

3. Regional Market Highlights

Seattle

Seattle remains a hotspot for real estate activity, characterized by high demand and limited supply. The median home price in Seattle is currently around $885,500, with homes typically selling within 13 days.

Redmond

Redmond’s housing market is booming, with the median home price reaching $1,279,858 in June 2024, up by 8.7% year-over-year. Homes in Redmond are selling fast, averaging just 11 days on the market.

Snohomish County

Snohomish County is experiencing a frenzy in sales activity, with 67.9% of homes selling within the first 30 days. The average home price in the county is $831,403, with inventory levels at just 1.3 months.

4. Impact of Interest Rates

The current interest rate of 7.28% is described as “uncomfortable” for many buyers. However, there is potential for rates to stabilize or even decrease later in the year, which could provide some relief for prospective homebuyers.

5. Future Outlook

Experts predict that home prices in Washington will continue to rise, albeit at a slower pace. Inventory levels are expected to remain tight, maintaining a competitive market environment. Additionally, potential interest rate cuts by the Federal Reserve could improve affordability and stimulate further market activity.

The Washington housing market is characterized by high demand, rising prices, and limited inventory. For homebuyers and sellers, staying informed about these trends is crucial for making strategic decisions.

If you’re considering buying a home or need advice on navigating the current market in Washington, contact our team at Dwell Mortgage. Our experienced loan officers are here to guide you through these challenging times and help you make informed decisions.