Northwest MLS Market Snapshot: December 2024
The December 2024 housing market in Washington state showed a mix of challenges and adaptability as mortgage rates climbed to 6.91%, their highest level since July 2024. Despite three Federal Reserve rate cuts earlier in the year, borrowing costs ended 2024 higher than in 2023, signaling a "new normal" for homebuyers and sellers. Median home prices rose 4.3% year-over-year, reaching $623,500, while inventory and sales activity experienced notable increases of 25% and 19.8%, respectively. These trends highlight a housing market where affordability remains a concern, but buyers and sellers are beginning to adjust to higher costs and evolving market conditions.
Market Overview
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Mortgage Rates:
- Mortgage rates rose to 6.91% as of January 2, 2025, the highest since July 2024.
- Despite three Federal Reserve interest rate cuts in 2024, the 30-year mortgage rate ended the year higher (6.85%) than in 2023 (6.61%).
- Experts predict a "new normal" with persistent rates of 6% or higher.
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Home Prices:
- Median sales price increased 4.3% year-over-year, reaching $623,500 in December 2024.
- However, prices dropped 3.33% month-over-month from November 2024 ($645,000).
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Market Activity:
- Active listings rose 25% compared to December 2023.
- Closed sales increased 19.8% year-over-year.
- Buyers and sellers appear to be adjusting to higher borrowing costs.
December 2024 Key Statistics
Active Listings:
- +25% year-over-year increase, with 21 out of 26 counties seeing double-digit growth.
- Top counties for inventory growth:
- Snohomish: +46.1%
- Douglas: +43.3%
- Cowlitz: +40.8%
Closed Sales:
- Residential and condo sales totaled 4,812, a 19.8% increase from December 2023.
- Total sales value: $3.69 billion, a 24.8% increase year-over-year.
Median Sales Price:
- Highest median prices:
- San Juan: $849,500
- King: $800,000
- Snohomish: $744,995
- Lowest median prices:
- Ferry: $125,000
- Adams: $292,300
- Pacific: $320,000
Consumer and Broker Activity
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Keybox Access:
- December 2024: 82,655 accesses (a 3% year-over-year increase).
- Month-over-month activity decreased by 26%.
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Property Showings:
- Scheduled showings dropped 25% month-over-month but increased 6% year-over-year.
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Down Payment Resource (DPR) Program:
- Eligible properties: 11,382, a 17% year-over-year increase.
What This Means for Buyers and Sellers
For buyers, the rising mortgage rates and higher home prices mean affordability remains a challenge. However, the increase in active listings and the availability of programs like Down Payment Resource provide opportunities for those prepared to navigate the current market conditions. Buyers should consider locking in rates now to avoid potential increases and explore properties while inventory remains higher.
For sellers, increased buyer activity and rising median home prices are encouraging signs, but pricing homes competitively remains crucial. With the market showing signs of gradual adaptation, sellers may find opportunities to secure favorable deals, especially in high-demand areas. Preparing homes to stand out in a competitive market will be key to success.
