4 things you need to know about the Thurston County housing market
The Thurston County housing market has dramatically changed in the past six months, as January data shows.
Sales and median price fell from January 2022, while inventory shot higher, according to Northwest Multiple Listing Service data released this week.
Fewer sales
Sales fell sharply last month, down 50 percent to 165 units from 335 units in January 2022, the data show. Although January is typically a slow month for home sales, the market has been slowed even more by higher mortgage interest rates.
Prices are down
This might come as relief to potential buyers and concern for sellers: The median price of a single-family home was lower last month than it was in January 2022. The median price fell 1.03 percent to $475,000 from $479,950 in 2022, the data show. It is down even more from December, when the median price was $497,500.
The county’s median price peaked at $525,000 in June 2022.
More homes on the market
As the market has slowed, inventory has grown, and in January the market had more than two months of inventory. The market continues to favor sellers over buyers, but it is trending in the right direction if you’re looking for a home. A market that doesn’t favor either seller or buyer has four to six months of inventory.
Is there a silver lining?
Yes, there is. The market has been slowed by higher mortgage interest rates, but rates have fallen in recent weeks to around a 6 percent average for a 30-year fixed-rate mortgage, according to Freddie Mac, a government-sponsored enterprise that provides capital to mortgage lenders and tracks interest rates.
What’s so great about 6 percent? It’s down from a recent high of 7 percent.
“Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over 7 percent,” said Sam Khater, Freddie Mac’s Chief Economist, in a statement. “According to Freddie Mac research, this 1 percentage point reduction in rates can allow as many as 3 million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price.”
However, that 6 percent rate is twice what it was a year ago.
A closer look at the January data
▪ Single-family home sales fell 50.75 percent to 165 units in January 2023 from 335 units in January 2022.
▪ Single-family home median price fell 1.03 percent to $475,000 from $479,950 over the same period.
▪ Single-family pending sales fell 12.4 percent to 319 units from 346 units over the same period.
▪ Condo sales fell to six units from 10 units between January 2023 and January 2022.
▪ Condo median price was nearly unchanged at $290,000 over the same period.
▪ Condo pending sales rose to 11 units from four units over the same period.
Source: Northwest MLS
This story was originally published February 8, 2023 at 5:00 AM.
