Sales fall, inventory rises as Thurston real estate market heads in new direction
The number of single-family homes sold in Thurston County fell 10 percent and inventory more than doubled in June — yet another sign that the local housing market is shifting to become better for buyers after favoring sellers for years, according to new Northwest Multiple Listing Service housing data.
Want another sign? Inventory of Thurston homes on the market — which has long been less than one month — finally rose above one month in June for single-family residences, the data show. A market that doesn’t favor either sellers or buyers is thought to have four to six months’ worth of inventory.
Also, there were 746 new listings in June, up from 670 a year ago, while the number of active listings more than doubled over the same period. Inventory rose 167 percent to 582 residences from 218 in June 2021, the data show.
The change has been felt by both buyers and sellers, said Van Dorm Realty brokers Ashley DuVall and her mother, Cheri Wilkins, who co-listed a home in west Olympia that overlooks Budd Inlet.
“Buyers have more time and more flexibility in price and offer conditions,” DuVall said, adding that buyers no longer have to offer more than list price or waive the home inspection — two things that happened when the market was at its hottest.
The median price went up in June — hitting $525,000, almost 12% higher than a year ago, but just $5,000 more than in May — but homes are spending more days on the market before being sold, DuVall said.
When the market was more frenzied, a house would be listed on a Thursday and go under contract Sunday, but not now, Wilkins said.
“We have a healthier market because of that,” she said.
Although the market has shifted toward the buyer, mortgage interest rates remain elevated compared to last year, and with prices still rising, more buyers can afford less house.
Freddie Mac, a government-sponsored enterprise that provides capital to lenders also tracks interest rates. The 30-year fixed-rate mortgage averaged 5.3 percent the week of July 7, which was down from a previous high of 5.7 percent. A year ago the average was 2.9 percent.
“While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown,” Freddie Mac officials said in a statement.
Real estate brokers also are adjusting to a new open house experience — something that did not take place during the worst of the pandemic. The DuVall and Wilkins listing on Harbor View Drive Northwest, a nearly 3,000-square-foot home listed for $695,000, attracted only two visitors on Sunday.
“We have to hit the re-set button,” Wilkins said.
June housing market data
▪ Single-family home sales fell 10.3 percent to 515 units in June 2022 from 574 units in June 2021.
▪ Single-family home median price rose 11.7 percent to $525,000 from $469,950 in June 2021.
▪ Pending sales fell 18 percent to 556 units from 682 units over the same period.
▪ Condo sales rose to 15 units in June 2022 from 13 units in June 2021.
▪ Condo median price rose to $327,000 from $249,950 over the same period.
▪ Pending sales fell to 13 units from 26 units over the same period.
Source: Northwest MLS.
This story was originally published July 12, 2022 at 5:00 AM.
