Thurston County median home price rose 12 percent in 2020
The median price of a single-family home in Thurston County rose 12 percent in 2020, making it yet another good year for sellers and a continuing challenge for buyers, according to a residential real estate recap released by the Northwest Multiple Listing Service.
Although the number of sales fell 4 percent in 2020 compared to 2019, more than 5,000 homes still sold last year.
“In-bound migration, some of which was attributable to work-from-home sparked by COVID-19, contributed to a lot of last year’s sales,” said Ken Anderson, broker and owner of Coldwell Banker Evergreen Olympic Realty in Olympia.
That demand, combined with low inventory, made the market incredibly competitive and pushed up the median price of a single-family home. Although median price here recently hit $400,000, data for the whole year peg it at $380,000, the data show.
The number of homes on the market was low in 2019, then it fell even lower, according to the Northwest MLS recap. For 2019, months of inventory for the year was 1.10 months; in 2020, it was 0.61 months.
Both figures are well below the 4- to 6-month range industry insiders use as an indicator of a “balanced” or neutral market, favoring neither buyers nor sellers, according to the Northwest MLS.
Expect more of the same this year, Anderson said.
“While buyer interest remains strong, there is a challenge with having enough homes to meet that demand,” he said. “We have been under-building in this community for over a decade. It is no surprise we have a record sellers’ market, going on 6 1/2 years. We do not expect to see any increase in building activity in 2021, so things will remain competitive.”
And that’s not just in Thurston County.
Inventory throughout the Northwest MLS service area has tumbled over the same time period, from 396,724 active home listings in 2010 to 84,649 in 2020.
Anderson expects some new inventory as the county addresses COVID-19.
“We expect to see listings from existing homes increase this year, particularly as more vaccine rolls out,” he said. “Even with more homes for sale here, it will not be enough to change the competitive landscape. Buyers are moving quickly when new homes come to market.”
Why? Because as prices rise here — Anderson expects median price to rise 8 percent in 2021 — the county still remains one of the most affordable markets in the Puget Sound region, compared to King, Snohomish and Pierce counties.
Thurston County home data for 2020
▪ Sales fell 4 percent to 5,060 units in 2020 from 5,253 units in 2019.
▪ Median price rose 12 percent to $380,000 from $340,000.
▪ Inventory fell 47 percent to 3,067 units from 5,775 units.
▪ Months of inventory fell to 0.61 months from 1.10 months.
▪ 38 homes sold for $1 million or more in Thurston County in 2020, compared to more than 6,500 that sold for that amount in King County last year.
▪ Five condos sold for $500,000 or more in Thurston County last year, compared to more than 2,600 in King County.
Source: Northwest MLS.
This story was originally published January 22, 2021 at 5:45 AM.
