The Washington state housing market has experienced some notable changes in recent times. The housing market does not show clear signs of an impending crash. However, the landscape is dynamic, and potential buyers and sellers should stay informed about regional variations and broader economic trends. Here are the latest trends in the Washington housing market.
Washington State Housing Market Forecast 2024
According to Zillow, the average home value in Washington sits at $591,148, marking a modest increase of 3.4% over the past year. This figure, while indicative of growth, also underscores the competitive nature of the market. Homes, on average, go pending in approximately 11 days, emphasizing the need for swift decision-making in this fast-paced environment.
Key Housing Metrics in the State
- For Sale Inventory: As of March 31, 2024, Washington boasts 13,203 homes for sale, providing buyers with a range of options to explore.
- New Listings: March 31, 2024, saw 5,655 new listings entering the market, injecting fresh inventory and stimulating buyer interest.
- Median Sale to List Ratio: This metric, standing at 0.998 as of February 29, 2024, reflects the balance between listing prices and actual sale prices, offering insights into negotiation dynamics.
- Median Sale Price: With a median sale price of $526,633 (February 29, 2024), Washington remains an attractive market for prospective buyers and investors alike.
- Median List Price: As of March 31, 2024, the median list price stands at $569,333, setting a benchmark for sellers and influencing market sentiment.
- Percent of Sales Over List Price: A notable 29.3% of sales exceeded the list price as of February 29, 2024, underscoring the competitive bidding environment prevalent in certain segments.
- Percent of Sales Under List Price: Conversely, 47.6% of sales were recorded below the list price as of February 29, 2024, indicating room for negotiation and market fluidity.
Is Washington a Buyer's or Seller's Housing Market?
With a relatively low inventory of homes for sale and a steady increase in home prices, the market tends to favor sellers. Additionally, the competitive nature of the market, as evidenced by homes going pending in a short period, further tilts the balance towards sellers. However, buyers can still find opportunities, especially in areas with slower price growth or through strategic negotiation tactics.
Despite occasional fluctuations, overall home prices in Washington have shown resilience and have maintained an upward trajectory. While certain areas may experience temporary declines or slower growth rates, a significant and sustained drop in home prices statewide is not currently observed. Factors such as strong demand, limited inventory, and economic stability contribute to the stability of home prices in the market.
Will the Washington Housing Market Crash?
As of the present analysis, there are no imminent indicators suggesting a housing market crash in Washington. While market conditions may evolve and undergo fluctuations, fundamental factors such as population growth, economic diversification, and housing demand remain relatively strong. However, it's essential to monitor market trends closely and adapt strategies accordingly to navigate any potential changes or challenges that may arise in the future.
Top Areas in Washington Poised for Home Price Growth in 2024
Centralia, WA: This MSA exhibits a steady trajectory of home price growth, with an anticipated increase of 1.1% by June 30, 2024, and a robust 3.7% rise projected by March 31, 2025. This consistent upward trend positions Centralia as a promising area for potential investors and homeowners alike, seeking appreciation in property values.
Othello, WA: Another area showing resilience and growth potential is Othello, with home prices expected to climb by 1% by June 30, 2024, and a substantial 3.6% surge projected by March 31, 2025. This upward trajectory underscores the attractiveness of Othello as an emerging market for real estate investment, driven by factors such as economic development and demand dynamics.
Moses Lake, WA: With a projected increase of 1.1% by June 30, 2024, and a notable 3.3% rise forecasted by March 31, 2025, Moses Lake emerges as another hotspot for home price growth in Washington. Factors such as infrastructure development and lifestyle amenities contribute to the appeal of this region, attracting both buyers and investors looking to capitalize on its potential.
Aberdeen, WA: Aberdeen demonstrates resilience in its housing market, with a projected 1% increase by June 30, 2024, and a respectable 2.9% rise anticipated by March 31, 2025. This steady growth trajectory positions Aberdeen as a stable investment option, offering opportunities for long-term appreciation and returns.
Spokane, WA: While exhibiting slightly lower growth rates compared to other regions, Spokane still presents opportunities for home price appreciation. With a projected increase of 0.6% by June 30, 2024, and a modest 2.6% rise anticipated by March 31, 2025, Spokane remains an attractive destination for buyers seeking affordability and quality of life.
Olympia, WA: Rounding out the list is Olympia, showcasing a promising outlook for home price growth. Anticipated to increase by 1.2% by June 30, 2024, and 2.6% by March 31, 2025, Olympia offers a blend of economic opportunities and lifestyle amenities, making it an appealing choice for both residents and investors.
Port Angeles, WA: The Port Angeles metropolitan statistical area (MSA) demonstrates a resilient outlook, with home prices expected to increase by 1.1% by June 30, 2024, and a steady 2.4% rise projected by March 31, 2025. This growth trajectory is driven by factors such as scenic beauty, recreational opportunities, and a growing local economy, making Port Angeles an attractive destination for homebuyers seeking both natural beauty and economic stability.
Yakima, WA: Yakima presents a promising outlook for home price growth, with an anticipated increase of 0.9% by June 30, 2024, and a respectable 2% rise projected by March 31, 2025. This growth is fueled by factors such as agricultural activity, economic diversification, and affordability, making Yakima an appealing option for both first-time homebuyers and investors.
Shelton, WA: Shelton showcases a modest yet steady growth trajectory in its housing market. With a projected increase of 0.4% by June 30, 2024, and a consistent 2% rise anticipated by March 31, 2025, Shelton offers stability and affordability to prospective buyers. Factors such as proximity to nature, a sense of community, and economic development contribute to Shelton's appeal as a residential destination.
Mount Vernon, WA: Mount Vernon presents opportunities for home price appreciation, with an expected increase of 0.9% by June 30, 2024, and a modest 1.9% rise forecasted by March 31, 2025. This growth is driven by factors such as its strategic location, agricultural prominence, and quality of life, making Mount Vernon an attractive choice for homebuyers seeking a blend of urban amenities and natural beauty.
Kennewick, WA: Kennewick exhibits a promising outlook for home price growth, with an anticipated increase of 1.2% by June 30, 2024, and a respectable 1.8% rise projected by March 31, 2025. Factors such as job opportunities, infrastructure development, and affordability contribute to Kennewick's appeal as a destination for both residential and investment purposes.
Seattle, WA: While experiencing slightly lower growth rates compared to other regions, Seattle remains an attractive market for homebuyers and investors alike. With an expected increase of 1.4% by June 30, 2024, and a modest 1.7% rise forecasted by March 31, 2025, Seattle offers a blend of economic opportunities, cultural richness, and urban amenities, making it a coveted destination in the Washington housing market.
Sources:
- https://fred.stlouisfed.org/series/WASTHPI#
- https://www.zillow.com/wa/home-values/
