Housing market cools in Pierce County. Agents explain why, what to expect in August
Pierce County home sales in July continued to reflect the area’s market cooldown, with the median prices of existing single-family homes down from the previous month as well as the previous year.
Median closed sale price for existing homes in Pierce County in July was $541,000, down from June’s $545,000 and $575,000 in July 2022, according to the latest Northwest Multiple Listing Service report.
“The number of existing homes for sale has dropped precipitously year-over-year in Western Washington,” Dick Beeson, managing broker, RE/MAX Northwest, Tacoma/Gig Harbor, said in Monday’s release. “Right now, new construction can’t meet demand.”
The report showed that active listings in Pierce County were down nearly 42 percent from the same time a year ago. Condominium listings were down more than 23 percent from a year ago, with median sale price just under $400,000, down more than 3 percent from 2022.
Windermere chief economist Matthew Gardner said in Monday’s release that listings in King, Pierce and Snohomish counties combined were lower last month (at 5,509 total active listings) than any July on record except for 2021. That year, the pandemic slowdown sent the inventory in the three counties down to 4,690 listings.
The report acknowledged the continuing effect higher interest rates were having on the market.
NWMLS reported, “Last week’s rate on a 30-year fixed rate mortgage was 6.9%, according to Freddie Mac. A year ago, it was 4.99% and two years ago it was 2.77%.”
On Monday, Bankrate.com noted that the current average 30-year fixed mortgage interest rate was 7.38%.
Lawrence Yun, National Association of Realtors’ chief economist, recently predicted that mortgage interest rates would gradually decline to 6.1% by early next year.
John L. Scott Real Estate’s report for August noted, “Approximately 70% of buyers have a home to sell, providing additional inventory,” but that higher buyer demand “in the more affordable and mid-price ranges than the number of new listings ... will send prices higher.”
A Kitsap County broker cited in Monday’s report confirmed the issues some buyers are running into if they also are trying to sell their existing home.
“Many potential sellers are holding back because they don’t see a way forward in buying another home given the limited supply,” said Frank Wilson, managing broker, John L. Scott, in Poulsbo. “We’re still seeing multiple offers and in the case of buyers who need to sell first, their offers are being overlooked for transactions that are not contingent on the sale of a home.”
Realtor Jon Bye is the team leader at Jon Bye & Associates in Kent and participated in The News Tribune’s online real estate forum in July. He noted at that time how the inventory shortage was shaping the market this summer.
“During the pandemic, I think everybody thought once we returned back to normal, that we would have a lot more options, things would be easier, there wouldn’t be as many challenges,” he said in July. “Right now, it just comes down to options. If there are not a lot of options, people are going to be staying put.
“So until that changes ... we’re going to see a similar type market that we’re in right now. Nice homes in nice areas priced well are going to sell fast,” he added.
