Washington State Housing Market Trends & Forecast 2024

The Washington state housing market has experienced some notable changes in recent times. The housing market does not show clear signs of an impending crash. However, the landscape is dynamic, and potential buyers and sellers should stay informed about regional variations and broader economic trends. Here are the latest trends in the Washington housing market.

Washington State Housing Market Forecast 2024

Average Home Value:

According to Zillow, the average Washington home value stands at $563,764, reflecting a 1.7% increase over the past year. This figure not only signifies the current state of the market but also hints at potential trends in property appreciation.

Pending Time:

Homes in Washington are showing a robust demand, as evidenced by the average time to pending being around 24 days. This rapid turnaround highlights the competitive nature of the real estate market in the region.

Inventory Statistics:

As of January 31, 2024, there are 13,431 homes for sale in Washington. This inventory provides prospective buyers with a diverse range of options, contributing to a dynamic marketplace.

New Listings:

In January 2024, 3,392 new listings entered the market, injecting fresh opportunities for buyers and indicating a certain level of dynamism in the real estate scene.

Sale to List Ratio:

One of the critical metrics to gauge market health is the median sale to list ratio, which stood at 0.998 as of December 31, 2023. This ratio indicates the competitiveness of the market, with figures close to 1 reflecting a strong balance between listing prices and actual sale prices.

Median Sale Price:

The median sale price for homes in Washington, recorded at $536,317 as of December 31, 2023, provides valuable insights into the affordability and value proposition of properties in the region.

Median List Price:

Concurrently, the median list price as of January 31, 2024, stands at $558,333. This figure gives prospective buyers an idea of the current market expectations and trends in pricing.

Percent of Sales:

Examining the percent of sales over and under list price as of December 31, 2023, reveals intriguing dynamics. 28.0% of sales were over list price, indicating a competitive market, while 47.9% were under list price, showcasing opportunities for strategic buyers.

Is Washington a Buyer’s or Seller’s Housing Market?

Examining the current state of the Washington housing market, it leans towards being a seller’s market. The data, encompassing various cities and their projected growth, indicates a demand that potentially outpaces the available housing inventory. In seller’s markets, there’s often increased competition among buyers, leading to quicker property sales and potential bidding wars.

Are Home Prices Dropping in Washington State?

Contrary to a decline in home prices, the forecasted data for Washington cities generally indicates an upward trajectory. While some areas may experience modest fluctuations, the overall trend suggests positive home price growth. This is an encouraging sign for homeowners and real estate investors, indicating the resilience and stability of the market.

Will the Washington State Housing Market Crash?

As of the provided data and projections, there is no indication of an imminent housing market crash in Washington. The consistent growth forecasts across various cities point towards a stable and resilient real estate market. It’s important to note that market conditions can change, and continuous monitoring is advised, but current data suggests a healthy and sustainable environment.

Is Now a Good Time to Buy a House in Washington?

Considering the overall growth trends and the seller’s market conditions, the question of whether now is a good time to buy a house depends on individual circumstances. For those looking to invest and take advantage of potential appreciation, the current environment offers opportunities. However, prospective buyers should be prepared for competitive bidding and act diligently to secure properties in this dynamic market.

Top Areas in Washington Poised for Home Price Growth in 2024

When analyzing the real estate landscape, it’s essential to pinpoint regions where home prices are poised for significant growth. The forecasted data for various areas in Washington, particularly in the Seattle metropolitan statistical area (MSA) and surrounding regions, sheds light on the anticipated trajectory of home values.

Seattle, WA:

Seattle, being a cornerstone of Washington’s real estate market, is expected to experience substantial growth in home prices. According to the data gathered, from January 31, 2024, to January 31, 2025, there is a projected increase from 0.4% to 5.3%. This indicates a positive trend, making Seattle an attractive prospect for potential homeowners and investors alike.

Spokane, WA:

Similarly, Spokane shows promise with a forecasted growth range from -0.1% to 5.5% over the same period. Despite a slight dip initially, the projected upward trajectory suggests that Spokane is on track to be a noteworthy area for home price appreciation.

Kennewick, WA:

Kennewick, with an estimated growth range of 0.3% to 4.6%, stands as another focal point for potential homebuyers. This city demonstrates a consistent positive trend, making it an area to watch for those interested in real estate investment.

Olympia, WA:

Olympia, the state capital, is anticipated to see a growth range from 0.3% to 5.8%. This robust forecast positions Olympia as a prime location for individuals looking to invest in a property that is likely to appreciate in value over the coming years.

Bremerton, WA:

Bremerton, with a growth projection from 0.2% to 3.9%, offers a slightly more conservative yet still positive outlook for potential homebuyers. The city’s real estate market appears to be stable, making it a viable option for those seeking a balance between growth and reliability.

Yakima, WA:

Yakima, with a forecasted growth range from 0.1% to 4.9%, presents another opportunity for individuals interested in areas where home prices are expected to rise. The steady trajectory indicates a consistent demand for properties in this region.

Bellingham, WA:

Lastly, Bellingham is projected to experience growth ranging from 0.1% to 4.6%. This city, with its forecasted positive trend, showcases the overall optimism in the real estate market, providing potential homeowners and investors with appealing opportunities.

Mount Vernon, WA:

In Mount Vernon, there is an anticipated growth range from 0.2% to 4.9%, suggesting a positive outlook for potential homebuyers. This city, with its forecasted increase, aligns with the broader trend of appreciation seen across various regions in Washington.

Wenatchee, WA:

Wenatchee is expected to experience growth ranging from 0% to 3.6%. While this projection is relatively modest compared to some other areas, it still represents a positive trend in the local real estate market, making it an interesting option for those seeking stability and potential appreciation.

Longview, WA:

Longview, with a growth forecast from 0.1% to 4.6%, showcases a city that is likely to see appreciable gains in home values. This positive trajectory aligns with the general optimism observed in the Washington real estate market.

Moses Lake, WA:

Moses Lake stands out with a forecasted growth range from 0.2% to 6.1%. This city displays a strong potential for significant appreciation, making it a compelling choice for individuals looking for areas with high growth prospects.

Oak Harbor, WA:

Despite a slight dip initially, Oak Harbor is projected to experience growth from -0.1% to 3.8%. This city, known for its military presence, still offers positive growth potential, contributing to the diverse opportunities available in Washington’s real estate market.

Centralia, WA:

Finally, Centralia is expected to see growth ranging from 0.2% to 6.5%. With a forecast that indicates a substantial increase, Centralia becomes a noteworthy city for individuals seeking areas with high growth potential in Washington.

Port Angeles, WA:

In Port Angeles, there is a projected growth range from 0.2% to 5.2%. This coastal city’s forecasted appreciation underscores its appeal for those seeking potential gains in home values against the scenic backdrop of the Olympic Peninsula.

Aberdeen, WA:

Aberdeen, despite a slight dip initially, is expected to see growth from -0.1% to 5.3%. This indicates a positive trajectory for the city, aligning with the overall optimism observed in Washington’s real estate market.

Shelton, WA:

Shelton boasts a growth forecast ranging from 0.3% to 5.5%. This city’s positive outlook suggests a robust real estate market, making it an attractive option for those considering property investment in Washington.

Walla Walla, WA:

Walla Walla, with a growth range from 0% to 4%, showcases a city with moderate yet positive growth prospects. This city, known for its wine country charm, presents an interesting blend of lifestyle and investment potential.

Pullman, WA:

Pullman, despite a modest forecast from -0.2% to 4%, is expected to see appreciable growth. As a college town with the presence of Washington State University, Pullman offers unique opportunities in the real estate market.

Ellensburg, WA:

Ellensburg, with a forecasted range from -0.3% to 3.4%, presents a city with more conservative growth expectations. While the growth may be moderate, Ellensburg still offers stability and potential for those seeking a more balanced real estate market.

Othello, WA:

Lastly, Othello is anticipated to experience substantial growth, with a forecasted range from 0.3% to 6.6%. This city’s positive trajectory makes it a compelling choice for individuals looking for areas with high growth potential in Washington.

Sources:

• https://fred.stlouisfed.org/series/WASTHPI#
• https://www.zillow.com/wa/home-values/