Thurston median home price up 2% over September 2022, but down sharply from August
Thurston County median home price in September rose modestly from last year, but tumbled lower on a month-to-month basis after hitting an all-time high in August, according to new data released Thursday by Northwest Multiple Listing Service.
Median price in September stood at $500,000, up 2.1% from September 2022, the data show. But between August 2023 and September 2023, it was a different story.
In August, median price rose to $529,950, a new all-time high for the area. But a month later, it shed nearly $30,000 to fall to $500,000.
Why the one month change? Sales continue to fall while the average interest rate for a 30-year mortgage continues to climb. The average stood at 7.49%, according to a recent survey released by Freddie Mac, which tracks interest rates.
.png "YoY_YTD Sold (1).png")
“Several factors, including shifts in inflation, the job market and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation,” said Freddie Mac Chief Economist Sam Khater in a statement. “Unsurprisingly, this is pulling back home buyer demand.”
The number of Thurston County homes sold fell nearly 25% to 309 units, down from 410 in September 2022, and inventory still remains at historic lows.
A market that doesn’t favor either the seller or the buyer has inventory in the range of four to six months. Inventory here in September stood at 1.56 months, which favors the seller. And new listings in September fell to 305 units from 403 units a year ago.
“The real estate market typically slows down in the fall and winter months,” said Mason Virant, associate director of the Washington Center for Real Estate Research at the University of Washington in a statement. “However, the high-interest rate environment has further decreased the purchasing power of prospective buyers, leading to a continued decline in year over year transaction volume with overall median prices stagnating.”
A lower median price is probably welcome news to prospective buyers because the federal government announced some troubling news about the rental market.
The U.S. Department of Housing and Urban Development announced in September they would release more than $2.6 million in housing vouchers for qualifying Washington state residents because fair market rents are expected to soar in fiscal year 2024.
The average fair market rent is expected to rise 10.7% across the state in the fiscal year period, but HUD officials also singled out the Olympia area because rents here are expected to rise 23.8% or $346.
The September data
▪ Single-family home sales fell 24.63% to 309 units in September 2023 from 410 units in September 2022.
▪ Single-family home median price rose 2.1% to $500,000 from $489,700 over the same period.
▪ Single-family home pending sales fell 27% to 306 units from 419 units over the same period.
▪ Condo sales rose to 17 units from 13 units over the same period.
▪ Condo median price was largely unchanged at $340,000 over the same period.
▪ Condo pending sales rose to 16 units from 13 units over the same period.
Source: Northwest MLS.
