Interest rates continue to be the predominant topic and driving force behind trends in the real estate world right now. As we’re now in fall and heading into the holiday season it is normal to see the market slow down in general. What we are seeing on top of that is interest rates slowing the market even more than usual for this time of year. At the end of October Freddie Mac reported a 30-year fixed interest rate at 7.79% which is the highest we’ve seen so far in 2023. All regional data in this post is provided by the Northwest Multiple Listing Service (NWMLS).
Between October 2022 and October 2023 most NWMLS member-counties saw a decrease in home sales. During this time period the average decrease was 18%. For active listings, we’re seeing a 20% decrease between October 2022 and October 2023. As interest rates increase, the purchasing power of a home buyer decreases so I’m not surprised by these data points.
Between October 2022 to October 2023 the median price of homes sold declined in 11 out of 26 counties served by the NWMLS and increased in 14. The one remaining county remained flat. Region-wide the median sales price in October was $602,000. This was up slightly from $595,000 a year ago.
Interestingly, condominium sales continue to see steady MoM median price growth since July of this year. Earlier in 2023 condo prices were taking a significant YoY hit. In October, the median condo price was $474,944, up 4.38% from October 2022.
With reports saying interest rates are expected to decline throughout 2024, I think we’ll see buyers re-entering the market next year. If inventory remains lower, this will lead to price increases . As we head towards the holidays real estate might not be on your mind but it is never too early to start planning for the spring “busy” season. If you’re thinking about buying or selling a home in 2024 you can always feel free to reach out and I’ll be happy to answer any questions you may have.