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Are you planning to buy a home in Washington State sometime during 2024? If so, you’ll want to keep reading. This home buying report provides an in-depth look at real estate market trends across the state of Washington. It is fully updated for 2024 with all of the latest data.
A home purchase is likely the biggest financial investment you will ever make. Given this fact, you’ll want to do some research into the Washington real estate market if you are planning to buy in 2024.
High mortgage rates and home prices, and limited inventory: those are the trends we’ve been watching over the last few months and sharing here on our blog.
Mortgage rates have sharply increased in recent years, though they have finally plateaued. Home prices in Washington have continued to climb as well, though not as quickly as they have been in the past. In fact, Washington State’s housing market is considered healthy right now, with huge demand and limited inventory driving prices north. There’s still a shortage of homes for sale relative to the demand from buyers.
These are the most important trends that will affect Washington State home buyers in 2024 — and possibly beyond. Here’s what you should know about them.
As mentioned, fixed-rate mortgage rates have been on a steep climb over recent years. However, they plateaued in the fall of 2023 and have been dipping ever since. According to Freddie Mac, the rate for a 30-year fixed mortgage loan is 6.64%, as of February 2024. Experts expects the rate to dip down to around 6% by the end of the year, and dip even further to 5% by the end of 2025.
You might expect demand among home buyers in Washington to ease up a bit in response to high prices. But that’s not happening. Demand continues to remain high in real estate markets across the country and in Washington State specifically.
In Washington State, home buyers are still very active within the real estate market. In fact, our state is home to one of the most historically competitive real estate markets in the country — Seattle.
Seattle has seen a strong market over the past year, and things are expected to continue along the same pace over the next year.
Related: Housing Market Outlook For Spokane, WA in 2024
Tight inventory conditions persist in real estate markets across Washington, as we move further into 2024. There are more buyers in the market than there are homes for sale. This leads to increased competition and multiple-offer scenarios.
The real estate market in the Seattle area began 2024 with low levels of inventory. And with prices expected to rise coupled with more affordable mortgages, it’s expected that Seattle’s market will be competitive this year.
In overall King County, the number of active number of listings in January 2024 is significantly lower than it was the year before. According to RedFin, the number of homes sold in December 2023 in King County was down over 9% compared to the same month the year before.
In fact, at the moment, there is just a 1.92-month supply of available inventory in King County, which is much lower than the 5- or 6-months supply that characterizes a balanced market. As such, buyers have fewer homes to choose from, making it a more competitive market.
Yet, in reality, most major cities across the state are well below what’s considered to be a normal or “balanced” housing market. And inventory will likely remain tight well into 2024.
Based on these conditions, it’s no surprise that housing analysts and economists are predicting a continued rise in home prices across Washington State. Homebuyers will want to prepare early and be ready to move quickly when the right property comes alone.
According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes has been below six months for the last few years.
Will you need mortgage financing to buy a home in Washington State? Sammamish Mortgage can help. We offer a wide variety of mortgage programs and tools with flexible qualification criteria. We serve the entire state, as well as the broader Pacific Northwest region that includes Washington, Oregon, Colorado, and Idaho. Please contact us today with any financing-related questions you have.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.