The number of Thurston County homes sold in September dropped again by a double-digit percentage, extending a trend that appeared in June, according to new Northwest Multiple Listing Service data.
Sales, which fell 33 percent in September compared to the same month in 2021, have been slowed by higher inflation and mortgage interest rates which now hover around 7 percent for a 30-year fixed-rate mortgage, according to Freddie Mac, the government-sponsored enterprise that provides capital to mortgage lenders and tracks rates.
“Mortgage rates decreased slightly this week due to ongoing economic uncertainty,” said Sam Khater, Freddie Mac’s Chief Economist, in a statement. “However, rates remain quite high compared to just one year ago, meaning housing continues to be more expensive for potential home buyers.”
A year ago the average rate on a 30-year fixed mortgage was about 3 percent, according to the Freddie Mac data.
A slower pace to sales has brought some relief to prospective buyers who were previously rushing to buy a home, although it now comes with the caveat of new economic realities.
“Buyers are finally getting some relief,” said Mike Larson, a member of the Northwest MLS board of directors, in a statement. “Getting back to a balanced, more normal market is almost a welcome change,” he added, but noted “inflation and rising rates aren’t helping.”
Because of the slower market, the county now has enough inventory to last 45 days, up from under 30 days last year. A market that doesn’t favor either buyers or sellers has inventory in the range of four to six months.
Median price rose only 4 percent between September 2021 and September 2022. And on a month-to-month basis, there have been median price declines, according to the Northwest MLS data.
In June, the median price here was $525,000. In July it fell to $505,000, then $493,514 in August and $489,700 in September, the data show.
By spring, Windermere Chief Economist Matthew Gardner believes that year-over-year median price will start to drop.
“That said, I firmly believe that this will only be a short period of correction, so homeowners in the Puget Sound area shouldn’t be too concerned, especially given that 64 percent of them are sitting on over 50 percent of home equity.”
Single-family home sales fell 33 percent to 410 units in September 2022 from 613 units in September 2021.
