Market Recap
Mortgage rates are at their lowest level since March 2023 (6.35% for a 30-year fixed rate mortgage as of August 29th), and August 2024 reflected year-over-year increases in the number of active listings, new listings and pending sales. At the same time, the number of closed sales year-over-year was virtually unchanged, and median home prices rose in 20 of the 26 counties covered by NWMLS. The Federal Reserve is expected to further reduce interest rates in September, sending encouraging signals to potential buyers.
This week, mortgage rates continue to trend downward, with key economic news ahead that could influence the market further. The upcoming CPI inflation report and Treasury auctions will be closely watched this week, with many anticipating that easing shelter costs in the Core CPI may lead to a favorable outcome. Recent CPI report releases have been followed by lower mortgage rates, and while the trend looks promising.
August 2024 Key Takeaways
Active Listings
- There was a 34.1% increase in the total number of properties listed for sale, with 15,453 active listings on the market at the end of August 2024, compared to 11,525 at the end of August 2023.
- The number of homes for sale increased throughout Washington, with 25 out of 26 counties seeing a double-digit year-over-year increase.
- The five counties with highest increases in active inventory for sale were Douglas (+65.1%), Mason (+49.2%), Lewis (+49%), Pacific (+48%) and Pierce (+43%).
Closed Sales
- The number of closed sales remained relatively unchanged year-over-year (6,727 in August 2024 compared to 6,734 in August 2023).
- 15 out of 26 counties saw an increase in the number of closed sales year-over-year, while 11 saw a decrease.
“Mortgage interest rates have already started to moderate, dropping to 6.35% (for 30-year terms) at the end of August from this year’s high of 7.22% at the beginning of May,” said Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER) at the University of Washington.
Real estate transactions are getting canceled at the last minute — for the most insignificant reasons.
Home purchases getting canceled at a record rate
A recent Redfin report reveals around 56,000 home purchases fell through last June — or nearly 15% of homes that went under contract — marking the highest percentage of any June on record.
Buyers are getting more and more selective. They’re backing out due to minor issues because the monthly costs associated with buying a home today are just too high to rationalize not getting everything on their must-have list.
Buyers around Western Washington are thinking twice about purchasing property right now with the median home sale price climbing to record highs in July.
Home price predictions for the remainer of 2024
