7 things to know about the Thurston County housing market
Once again the Thurston County housing market presented an unusual situation in April as every major indicator fell, yet inventory remained tight, according to new data released last week by the Northwest Multiple Listing Service.
If the pace of home sales slows, it stands to reason inventory might rise as a result. But that has not happened because new listings are well off the pace they set last year, the data show.
The result appears to be a standoff between buyers and sellers about whether to do precisely that: buy or sell.
Sales
Thurston County single-family home sales fell 32% to 274 units last month from 403 units in April 2022, according to the data. Home sales here have fallen by a double-digit margin (from the same period a year ago) every month since the start of the year.
Median price
The median price of Thurston County single-family homes hasn’t seen steep declines from the year-ago period as some places have, but the median price did dip nearly 4% last month to $490,000 from $510,000 in April 2022. The April median price also was lower than the March median price of $499,950.
Regionally, the median home price fell 12% in King County over the same period and was down nearly 10% in Pierce County between April 2023 and April 2022.
Inventory
Earlier in the year, inventory showed signs of shifting in favor of buyers after a long run of favoring sellers. But that momentum appears to have died because the county’s inventory of homes for sale stood at one month in April. A housing market that doesn’t favor either buyers or sellers is thought to have inventory in the range of four to six months.
“The supply of housing remains limited due to a persistent shortage of available homes, as fewer homeowners are putting their homes on the market after locking in low home mortgage interest rates during the pandemic,” said J. Lennox Scott, chairman and CEO of John L. Scott Real Estate.
Scott said those most likely to move in this market are those who are forced to move because of a job or life event, or those who have built up a large amount of home equity.
Mortgage rates
The average rate on a 30-year mortgage, the most common mortgage, fell to 6.39%, according to the most recent survey released by Freddie Mac, a government-sponsored enterprise that provides capital to mortgage lenders and tracks interest rates. Although down slightly, it is still higher than the average rate of 5.27% a year ago.
“Interested home buyers are acclimating to the current rate environment, but the lack of inventory remains a primary obstacle to affordability,” said Sam Khater, Freddie Mac’s chief economist.
New listings
The number of new listings in Thurston County in April was 352, down from the 586 homes that hit the market in April 2022, the data show.
Pending sales
Pending sales, the early indicator of closed sales, also was way off the mark last month, down 30% to 369 units from 530 units in April 2022.
Condo sales
The condominium market represents a tiny portion of the county housing’s market, but if you’re curious, here’s the NWMLS data for the year-over-year April period:
- Sales fell to nine units from 10 units.
- Median price fell 5.25% to $319,950.
- Pending sales fell to seven units from 16 units.
This story was originally published May 7, 2023 at 5:00 AM.
