Here’s a look at Thurston house prices in July, after mortgage interest rates rose
If you’re waiting for higher mortgage interest rates to have a dampening effect on the price of a home in Thurston County — well, you’re still waiting.
Despite a 30-year mortgage interest rate that now averages about 7 percent, the median price of a home here last month didn’t budge, according to new July data released this week by Northwest Multiple Listing Service.
In fact, the median price went up slightly year over year, rising 1% to $510,000 from $505,000 in July 2022, the data show. However, the July median price was $5,000 lower than it was in June.
“With mortgage rates unlikely to move tangibly lower during the balance of the summer, I don’t expect the market to move much over the coming months, both in terms of sales and prices,” said Windermere Chief Economist Matthew Gardner.
The challenge is that inventory remains low — there was about a month of inventory for sale — which means the market continues to favor sellers over buyers. A market that doesn’t favor either party has four to six months of inventory for sale.
Another way to look at it: 369 homes came to market here in July, but that was down from 553 homes in July 2022.
With more inventory on the market, sellers have to work harder to make their home more competitive, which might mean a price reduction. Pierce County had slightly higher inventory in July and median price there skidded nearly 6 percent year over year.
And although the market has slowed in Thurston County as it has elsewhere, it also hasn’t fallen off a cliff. More than 350 homes sold here last month, just 100 fewer homes than a year ago, which means there is still demand to live in the county.
So what’s the outlook if you’re a potential buyer still trying to buy a home?
Re/Max Northwest managing broker Dick Beeson referenced two national perspectives on the housing market: “They anticipate inventory loosening up with more resale and new construction homes becoming available. They also predict lower interest rates, but neither sees lower prices.”
Thurston data for July 2023
▪ Single-family home sales fell 22% to 355 units last month from 455 units in July 2022.
▪ Single-family home median price rose 1% to $510,000 from $505,000 over the same period.
▪ Single-family home pending sales fell 21.4% to 390 units from 496 units over the same period.
▪ Condo sales were unchanged at nine units during July in both years.
▪ Condo median price fell 12% to $294,500 from $334,950 over the same period.
▪ Condo pending sales rose to 24 units from six units over the same period.
Source: Northwest MLS.
This story was originally published August 9, 2023 at 5:00 AM.
