Washington Real Estate Market: What to Expect in 2024 & 2025?

The current median home sale price of $650,700 is stable and rising steadily at 4.9% YoY. Moreover, homes spend only 14 days on the market. This indicates that the Washington real estate market is pretty much competitive.

The average months of home supply are 2 months YoY. A market with fewer months of supply indicates a seller’s market. However, the number of homes sold dropped by 7.1% YoY in June. There were 8,229 homes sold in June 2024, down 8,856 homes sold in June 2023.

Such inactivity in the market is mainly due to the recent NAR settlement. People are anxious about the selling prices and agents’ compensation.

The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed the suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with low mortgage rates. Here are some tips for you to sustain in the market:

• If You Are a Home Buyer: Homes for sale (27,463) are growing at 19.8%. Along with this, the expected drop in home prices can benefit you. The low interest rates at 6.37%-6.62% are now in buyers’ favor. Also, in case of low housing demand and prices, you can request for seller concessions.
• If You Are a Home Seller: You can lock in Washington’s current high home prices. The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.

So, How Is the Real Estate Market in Washington?

Balanced!

The number of homes for sale increased by 19.8% in June 2024 compared to the previous year. This is the 5th consecutive month the housing market has witnessed such growth. Other important facts are:

• Median Days on Market: The median days on the market for homes for sale are 14 days, up by 3 days YoY. This trend suggests a high demand in the Washington real estate market.
• Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 18.7%. There are 27,463 homes for sale in Washington, with an average supply of 2 months.
• Average Home Prices: The median home price in Washington is $650,700. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 100.3%, down by 0.32 pt YoY.
• Home Sales: As per June 2024 data, home sales decreased by 7.1% YoY! Only 8,229 homes were sold, compared to 8,856 last year.
• Average Rent Prices: Rental costs vary statewide. The median rent is $2,150 with a month-over-month change is +$49.

Why Is Washington a Seller’s Market Now?

Washington real estate market has balanced inventory of homes for sale. Besides this, a steady increase in median home prices, favors home sellers. Homes spend only 14 days on the market which depicts the competitive market.

Let’s look at some more facts:

• Fewer Days on the Market: Homes are spending only 14 days on the market before going under contract. This is visible in metro cities like Seattle and Federal Way where the average days on market is between 7 to 9 days.
• Multiple Offers on Homes: Seattle has got 85 and Kenmore got 93 in Redfin’s Compete Score. It means the housing market in Washington is very competitive. It shows that many homes get multiple offers, some even sold without contingencies.
• High Sale-To-List Price: The average homes sell for about 1% above list price whereas hot homes sell for about 3% above list price. The average sale-to-list price ratio in Seattle is 101.3%.

• Homes Sell Above List Price: On average, 31.2% homes sell above list prices. However, in June, 30.9% of homes experienced price drops, compared to 26% last year. This trend indicates a gradual shift toward a buyer’s market.

Washington Housing Market Predictions 2024

Here are the predictions for Washington’s housing market in the remaining months of 2024 and 2025:

1. Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
2. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across WA YoY, reaching $652K in June 2024. Cities like Othello and Centralia expect a surge in home prices 3.6% by March 31, 2025.
3. New Home Constructions Sales Will Increase: As per Washington Building Permits Survey, 21,257 new private housing units were authorized. It has increased continuously. Washington’s housing market’s high demand will be served with the new constructions.
4. iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.

Bonus Predictions: Buyer Broker Commissions Will Be Zero!

In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:

1. Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
2. Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
3. Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
4. Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.

Is the Housing Market in Washington Going to Crash?

A housing market crash in the Evergreen State is unlikely.

Washington boasts one of the nation’s most thriving economies. WA has 6th highest household income in U.S. which is $125,847. Some top cities in Washington are poised for home price growth.

Aberdeen and Olympia shows a projection of 2.9% rise by March 31, 2025. Redmond has the largest population and is the home to companies like Microsoft and Nintendo of America. With a population of around 76,400, it’s the fastest-growing city in Washington.

Washington’s job market is also strong. The unemployment rate is only at 4.9% and its private-sector employment has increased 4.6% of the past 12 months. This affordability, combined with strong economy, makes a housing market crash in Washington unlikely.

2024: Is It a Buyers’ or Sellers’ Market Now?

Washington real estate market favors sellers in 2024. (And buyers, too!). The Washington real estate market is expected to lean more in favor of the buyers in the latter half of 2024.

Home prices are rising slowly, and the number of homes for sale has increased by 20% YoY. Buyers now have more choices. With mortgage rates around 6.37%, buyers also have more purchasing power.

Consequently, more homeowners are likely to list their homes on Washington MLS. The 6.3% increase in new active home listings in Washington has brought back home shoppers. So, whether you are looking for a condo in Olympia or a single-family primary home in Othello, you will find your dream home in the coming months.

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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.

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