Riding the Ferris Wheel

2023 Real Estate Recap

In typical fashion, January has already been off to a fast start with more buyers in the market, leading to homes escalating over list price and selling quickly! 2024 is an election year so the you-know-who will likely make our economy appear nice and pretty for the election.

Let's take a look at the past year. Here are some of the trends and data points:

Median Sales Price - Positive Appreciation

Homes For Sale - 2nd Lowest Year Since 2013

Pending Homes - Buyers Adjust to Rates

Days on Market - Following Seasonality Trends

Continued Price Appreciation: Seattle & Western WA has continued to experience price appreciation, driven by strong demand from tech industry growth, population influx, & limited housing supply, albeit at a more moderate pace compared to previous years.

Tight Inventory: Our housing market has been characterized by low inventory levels, contributing to competitive bidding situations and driving up prices. This scarcity of homes for sale persisted in 2023 as many homeowners don't want to give up their low rates (I don't blame them!), putting pressure on buyers.

Interest Rates: Interest rates continued to climb for much of 2023 and finally started to decline in early Nov. Ending the year in the mid 6's from high 7's/low 8's. The overall consensus in the industry seems to be that rates will continue to slowly lower for 2024 and 2025.

WA Overall Economy: Ranked #2 Best States in US News for our strong economy, it is hard to see what the impact of the recent challenges for Boeing and layoffs at Microsoft will have. Will the smaller tech businesses continue to absorb the layoffs?

Sustainability & Green Initiatives: WA continues to lead the country in sustainability. Please remember to check tax rebates for any changes you made to your home in 2023! Starting March 2024, WA Building Codes will change significantly in an effort to require builders to be more sustainable.  Curious about non-profits that are helping lead the transition to clean energy for marginalized communities? Spark Northwest is one I highly recommend checking out.

Despite potential economic uncertainties, Western Washingtons's real estate market has shown resilience in the face of challenges and 2023 was proof of that.