September 2024 Real Estate Update
As we enter September 2024, the real estate market in Washington State continues to demonstrate resilience, though signs of stabilization are becoming more evident. The market dynamics have been shaped by a mix of factors including interest rate adjustments, economic growth in tech hubs, and the ongoing supply-demand imbalance. Here's a closer look at the key trends and insights for this month.
1. Interest Rates: Relief Ahead!
The Federal Reserve's recent decision to lower interest rates in the coming months has already helped potential homebuyers. Last week, interest rates hit 2 year lows and while rates remain elevated compared to the lows of 2021, they are still manageable for many buyers. This has resulted in a large uptick of buyers in the market which will continue as rates continue to trend downwards.
2. Home Prices: Calm Seas Ahead?
After several years of rapid appreciation, home prices in Washington State appear to be stabilizing. The median home price across the state has seen only a slight single digit increase from last summer, with Seattle and surrounding areas leading the way. Some regions, particularly in Eastern Washington, are experiencing slower growth or even slight declines in prices, as demand cools and more inventory becomes available.
3. Inventory Levels: Improvement!
One of the most significant challenges in Washington's local real estate market has been the lack of inventory. August 2024 showed a gradual improvement, with a slight increase in new listings compared to the prior months. This is partly due to sellers who had been waiting for better market conditions now choosing to list their properties and also due to the increase in high density new construction across the state. Inventory does still remain extremely tight in high-demand areas like Bellevue, Redmond, and Kirkland, where tech-driven job growth continues to fuel demand.
4. Economic Driver: Employers
Washington’s tech companies remain a critical driver of the real estate market, particularly in the Puget Sound region. Companies like Amazon, Microsoft, and a growing number of startups continue to bring a large amount of people to the area, maintaining strong demand for both residential and commercial properties. However, with many companies adopting hybrid work models, there’s a noticeable shift in demand towards suburban areas and even some rural locations, where buyers seek more space and affordability. Pricing in Seattle itself is declining while the surburbs and rural areas surrounding it are flourishing.
5. Rental Market: Tight Conditions Persist
The rental market in Washington State remains competitive, with high demand and limited supply keeping rental prices elevated. In urban centers like Seattle, rents have increased slightly compared to year, as the influx of new residents continues to outpace the availability of rental units. This trend is pushing some renters to explore homeownership as a more viable long-term option, despite higher mortgage rates.
Maximizing Your Home’s Value
If you're planning to sell your home in the current market, remodeling can significantly boost your property's appeal and value. Here are some key remodeling tips to consider:
Focus on the Kitchen and Bathrooms: Consider updating countertops to quartz or granite, refreshing cabinetry with a coat of paint or new hardware, and upgrading old appliances to new models. In bathrooms, replacing outdated fixtures and installing modern lighting can make a big impact on how the room is viewed.
Boost Curb Appeal: Simple improvements like repainting the front door, adding landscaping elements such as native plants or seasonal flowers, and ensuring the driveway and walkways are clean and in good repair help with first impressions.
Updating Flooring: Replacing worn out carpet with hardwood or laminate flooring can give your home a more modern and spacious feel. If you have existing hardwood floors, consider refinishing.
Create Functional Spaces: With more people working from home, having a dedicated office space is highly desirable. If possible, repurpose an underused room or nook into a home office. Ensure it’s well-lit, with sufficient outlets and strong Wi-Fi connectivity.
Neutralize the Color Palette: Repainting walls in neutral tones like soft gray, beige, or white can make spaces feel larger and allow potential buyers to envision their own style in the home.
Final Thoughts
For those considering entering the market, whether as a buyer, seller, or investor, it’s crucial to stay informed and work with knowledgeable professionals who can navigate these complex conditions.
September 2024 is shaping up to be a pivotal month for the Washington State real estate market. With signs of stabilization emerging, it’s an opportune time to reassess strategies and make informed decisions based on the latest trends. Whether you're looking to buy, sell, or invest, staying ahead of the market will be key to success in this evolving landscape.
August 2024 Recap
Lions Realty Group was lucky enough to help 15 clients purchase and sell real estate across the state in the month of August. We as a team sold over 11 million dollars worth of inventory. With interest rates dropping, it is a great time for buyers and sellers to take advantage of the recent slow down in the market.
