Market Update | November 2023
Reduced Inventory Motivates Increased Home Prices
Published on: December 6, 2023
Northwest MLS, the source for the most current, accurate market listing data in Washington state, today released its Market Snapshot for the month of November 2023.
Market Recap:
A slight decrease in interest rates has raised cautious optimism – interest rates had fallen to around 7.2% as of December 1, 2023, in comparison to 7.8% in October 2023, and a continuation of that decrease would have a positive impact on the market in general. However, the decline in seasonal inventory continues to drive home prices upward, spurring an increase of 4.6% in prices from November 2022:
NWMLS brokers reported 4,367 closed sales in November 2023, which is a 16% drop from closed sales in November 2022 (5,194). However, this is a slight improvement from October’s year-over-year change in closed sales, which decreased 18% when compared to October 2022.
While most counties in the NWMLS report (19 of 26) saw a decrease in the number of homes sold, seven of the counties saw a year-over-year increase, including Grant, Okanogan, Kittitas, Walla Walla, San Juan, Adams and Ferry counties.
The median sales price increased year-over-year in 21 of the 26 total counties included in the statistical report. Overall, the median price for homes sold in November 2023 was $601,341, up 4.6% when compared to November 2022 ($575,000). The three counties with the highest median priced homes sold were San Juan ($975,000), King ($799,925) and Snohomish ($703,635). The three counties with the lowest median priced homes sold were Grant ($327,999), Ferry ($313,750) and Adams ($221,500).
When compared to the same month last year, November 2023 experienced a 17% decrease in the number of active property listings on the market. The total volume of homes for sale has continued to decline, with 19 out of 26 counties seeing a year-over-year decrease.
Although the number of sales transactions and housing inventory levels typically drop in the fall and winter months, the expected seasonal slow-down continues to be exacerbated by the high interest rate environment for buyers relying on mortgages.
“With the 30-year fixed mortgage rate currently just over 7.2%, the purchasing power of prospective buyers remains stunted relative to a few short years ago,” said Mason Virant, associate director of the Washington Center for Real Estate Research at The University of Washington. “Moreover, current owners with low-rate mortgages continue to be reluctant to sell. This has led to a continued decline in year-over-year transaction volume and the inventory levels in the market.”
Active Listings
There were 10,177 active listings on the market at the end of November 2023, a decrease of 16.9% compared to November 2022. The total volume of homes for sale has continued to decline, with 19 out of 26 counties seeing a year-over-year decrease.
Year Over Year Active Listings
Island, King and Snohomish County
New Listings
NWMLS brokers added 4,595 new listings to the database in November 2023, a decrease of 6% compared to November 2022, when 4,890 new listings were added.
Pending Sales
There were 4,678 total residential units & condo units under contract in November 2023, an overall decrease of 8.4% compared to November 2022. There were 8 counties with a year-over-year increase in the number of pending sales, including Kittitas, Douglas, Adams, Jefferson, Walla Walla, Okanogan, Chelan, and Grant.
Closed Sales
NWMLS brokers reported 4,367 closed sales in November 2023, which is a 16% drop from closed sales in November 2022 (5,194). The total dollar value of closed sales for residential homes for this month was $2,961,245,235 and was $312,105,340 for condominiums.
Months of Inventory
A balanced market is considered to be 4 to 6 months by most industry experts. At the current rate of sales, it would take around two and a half months to sell every home that is active in the NWMLS inventory. The four counties with the lowest months of inventory in November 2023 were Snohomish (1.52), Thurston (1.88), Kitsap (1.93), and King, (1.92).
Year Over Year Months of Inventory
Island, King, and Snohomish County
Median Price
Overall, the median price for residential homes and condominiums sold in November 2023 was $601,341, up 4.6% when compared to November 2022 ($575,000). The median sales price increased year-over-year in 21 of the 26 counties, with the highest median sales prices in San Juan ($975,000), King ($799,925), and Snohomish ($703,635) counties.
