Thurston County housing market slows as sales fall 25 percent

Work continues on the Bradley Park section, an 80-plus home development across from North Thurston High School on Sleater-Kinney Road Northeast at 15th Avenue Northeast.

Work continues on the Bradley Park part, an 80-plus dwelling improvement throughout from North Thurston Excessive College on Sleater-Kinney Highway Northeast at fifteenth Avenue Northeast.

sbloom@theolympian.com

The housing market in Thurston County just isn’t what it was.

A 12 months in the past, sellers have been in tight management and patrons discovered themselves leaping at one another, looking for a house within the face of quick stock and hovering costs. However July 2022 appears to be like loads completely different, in response to new housing knowledge launched this week by the Northwest A number of Record Service.

“Our market is slowing and costs are flat,” stated Steve Bast, principal dealer at Van Dorm Realty in Olympia.

His assertion is supported by the July findings. Gross sales are down 25 % from the identical interval final 12 months, common worth will increase have not grown as quick as 8.6 % over the identical interval, and on a month-to-month foundation, the common worth for single-family lodging has fallen, present the information.

The county common worth in July was $505,000, down from $525,000 in June.

How did this occur? Larger gasoline costs, increased inflation — inflation rose 9.1 % in the identical interval within the 12 months to June — and excessive mortgage charges, which have already fallen in current weeks, are nonetheless increased than they have been a 12 months in the past. All this contributed to a shift within the housing market.

Knowledge from the government-sponsored establishment often called Freddie Mac, which offers capital to mortgage lenders, reveals common 30-year mortgage charges are round 5 %, down from 5.3 %.

“Mortgage charges have remained unstable because of the tug of warfare between inflationary pressures and an obvious slowdown in financial progress,” Sam Khater, chief economist at Freddie Mac, stated in a press release. “The excessive uncertainty surrounding inflation and different components is more likely to hold charges floating, particularly because the Federal Reserve makes an attempt to navigate the present financial setting.”

Regardless of the county’s housing market slowdown, Pust added that it is again to regular. Sellers have gotten extra cautious about how their houses are priced, and patrons can negotiate once more. Throughout the craziest market interval, he stated, some patrons waived dwelling inspection to make their provide extra aggressive.

Of the 600 listed houses energetic available on the market in July, Bast stated, about 100 have lowered their checklist worth.

July knowledge reveals that stock continues to develop, which is now 1.5 months. A market that doesn’t favor sellers or patrons is believed to have a inventory within the vary of 4 to 6 months. The inventory was beforehand lower than one month within the county.

Nevertheless, there are nonetheless money dwelling patrons out there, and though the economic system is coping with some inflationary pressures, the underlying economic system stays robust, Pust stated. Federal labor knowledge confirmed that the speed of inflation outpaced wage progress, however wages nonetheless grew 5.5% in June on an annual foundation.

“The patron is extra selective and extra conscious of their finances,” Bast stated.

A more in-depth take a look at the county’s housing knowledge for July

Single-family dwelling gross sales fell 24.8% to 455 items in July 2022 from 605 items in July 2021.

The median single-family worth elevated 8.6 % to $505,000 from $465,000 over the identical interval.

Pending single-family gross sales fell 26 % to 496 items from 673 items throughout the identical interval.

House gross sales fell to 9 from 21 items throughout the identical interval.

The median house worth elevated to $334,950 from $269,000 over the identical interval.

Pending apartment gross sales fell to 6 from 23 items throughout the identical interval.

Supply: Northwest MLS.

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Work continues at Village at Cain Highway, a 24-unit subdivision on twenty second Avenue and Cain Highway in Olympia. Steve Bloom sbloom@theolympian.com

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Rolf has labored at The Olympian since August 2005. He covers breaking information, reminiscent of Lassie Metropolis and work on the newspaper. Rolfe graduated from Evergreen State Faculty in 1990.