The Thurston County housing market concluded 2023 with mixed signals, as reflected in the latest data from the Northwest Multiple Listing Service. In December, the county witnessed a decline in single-family home sales by 12 percent compared to the previous year, settling at 214 units. This downturn in sales is coupled with a stagnant median price for single-family residences, which remained relatively unchanged at $499,925 from December 2022.
However, this stability in median price marks a notable decrease from the November median of $529,900. Industry insiders urge caution in interpreting these figures, however. The median price statistics have been disproportionately influenced by the sales of million-dollar homes in the county, a trend partly attributed to the influx of new residents from higher-priced states, such as California.
The influence of high-value home sales is set to become clearer when the Northwest MLS releases its 2023 data on million-dollar home sales on January 18. The previous year saw 130 homes in the county being sold for $1 million or more.
Looking ahead to 2024, several factors could shape the local housing market. Mortgage interest rates, which had soared to around 8 percent for a 30-year mortgage, have now receded to an average of 6.62 percent, according to Freddie Mac. These rates may stabilize around 6.5 percent, and an improvement in inventory due to the emergence of “pent-up sellers” could spur additional transactions, according to a report in The Olympian.
The construction landscape in the area is seeing activity. Prominent builders like Rob Rice and D.R. Horton are undertaking several new projects, including Morel Meadows on the site of the former Ostrom’s mushroom farm.
Despite the potential for increased inventory, the current situation remains challenging. As of December, the inventory in Thurston County was still below two months, far from the four to six months range considered balanced between buyers and sellers.
However, buyers looking beyond Thurston County might find more favorable conditions. In December, Grays Harbor and Lewis counties reported a four-month supply of homes, with median prices at $299,000 and $395,000, respectively, the report stated.
In December 2023, Thurston County’s housing market exhibited a mix of trends. Single-family home sales experienced a notable decline, dropping by 11.9 percent compared to the previous year. Despite this decrease, the median price for these homes witnessed a slight uptick, increasing by 0.49 percent. In contrast, the condo market displayed a different pattern, with sales significantly increasing, although the median price for condos fell by 13.7 percent. Additionally, both single-family homes and condos saw a rise in pending sales, with an 8.25 percent increase for single-family homes and a similar upward trend for condos. This data suggests a dynamic and shifting housing market in the county.
