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Market Update — March 2025

We firmly believe timely and relevant data is key to making good decisions. To this end, we are committed to providing our community and clients with actionable data and insights about the local real estate market.

Local real estate market

With the data from February 2025 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 4,268 homes were sold in February 2025 (up 1.9% compared to 4,189 in February 2024). The median price of $630,000 which represents a 3.6% increase YOY. This total sale volume translates to a dollar value of about $3.3B.

New construction: 745 new construction homes were sold in February 2025. The median sale price of new construction homes was $773,420.

Months of inventory: Given the current quantity of supply, it’ll take 2.45 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in February 2025 were Snohomish (1.44), Thurston (2.04), Pierce (2.07), King (2.14), and Kitsap (2.15). The data indicates the persistent shortage of supply relative to demand.

New listings: 6,346 new listings were added to the NWMLS database in February 2025 representing a decrease of 2.6% compared to February 2024.

Mortgage rates: This month the Freddie Mac rate shows no major month-over-month change.

**Average 30-Year Fixed Mortgage Rates over the past 12 months (Source: Freddie Mac)**

Broader U.S. economy

The Fed’s Preferred Inflation Gauge Ticks Higher: The latest Personal Consumption Expenditures (PCE) report showed that headline inflation was
in line with estimates, rising 0.3% from January to February and 2.5% year-over-year. However, the core PCE rate - the Fed’s preferred measure that strips out volatile food and energy prices -was hotter than expected, up 0.4% from the prior month and 2.8% year-over-year, still stubbornly above the Fed’s 2% target. Costs for utilities, healthcare, and computer software all rose more than anticipated, contributing to the elevated inflation reading.
Pending Home Sales Improve: After two months of declines, pending home sales rose 2% from January to February, according to the National Association of REALTORS® (NAR). This metric, which tracks signed contracts on existing homes, typically precedes closings by 1-2 months and is a key indicator of housing market performance.

S F 2025-02-13 S F 2025-02-13

Market Update — February 2025

Local real estate market

With the data from January 2025 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 3,727 homes were sold in January 2025 (up 10.8% compared to 3,364 in January 2024). The median price of $615,000 which represents a 3.6% increase YOY. This total sale volume translates to a dollar value of about $2.8B.

New construction: 722 new construction homes were sold in January 2025. The median sale price of new construction homes was $760,500.

Months of inventory: Given the current quantity of supply, it’ll take 2.75 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in January 2025 were Snohomish (1.69), Kitsap (2.14), Pierce (2.23), Thurston (2.37), and King (2.54). The data indicates the persistent shortage of supply relative to demand.

New listings: 6,693 new listings were added to the NWMLS database in January 2025 representing an increase of 35.1% compared to January 2024.

Mortgage rates: This month the Freddie Mac rate shows no major month-over-month change.

Broader U.S. economy

January Jobs Report: A Mixed Bag: The Bureau of Labor Statistics (BLS) reported an addition of 143,000 jobs in January, below the forecast of 170,000. However, upward revisions for November and December added an extra 100,000 jobs, which bolstered the overall figures. The unemployment rate improved, decreasing from 4.1% to 4.0%.
Annual Home Appreciation Forecast Increased: Home prices nationwide increased modestly in December: CoreLogic reported a 0.03% rise and a 3.4% annual increase, while ICE noted a 0.2% rise and the same 3.4% yearly growth. CoreLogic expects a 0.2% decline in January and 4.1% appreciation for the year ahead, up from previous forecasts of 3.8% and 2.4%. This upward revision is noteworthy given CoreLogic’s typically conservative estimates.

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Market Update — January 2025

Local real estate market

With the data from December 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 4,312 homes were sold in December 2024 (up 5.2% compared to 4,098 in December 2023). The median price of $623,500 which represents a 4.3% increase YOY. This total sale volume translates to a dollar value of about $3.7B.

New construction: 752 new construction homes were sold in December 2024. The median sale price of new construction homes was $736,250.

Months of inventory: Given the current quantity of supply, it’ll take 1.98 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in December 2024 were Snohomish (1.09), Kitsap (1.51), Thurston (1.58), King (1.63), and Pierce (1.75). The data indicates the persistent shortage of supply relative to demand.

New listings: 3,166 new listings were added to the NWMLS database in December 2024 representing an increase of 9.8% compared to December 2023.

Mortgage rates: This month the Freddie Mac rate shows no major month-over-month change.

Broader U.S. economy

Big Upside Jobs Surprise: The Bureau of Labor Statistics (BLS) reported that there were 256,000 jobs created in December, which was well above estimates of 160,000. Revisions to October and November shaved 8,000 jobs from those months combined. The unemployment rate fell from 4.2% to 4.1%.
Private Sector Job Growth Hits 4-Month Low: ADP’s Employment Report showed that private sector job growth was weaker than economists had forecasted in December, as employers added 122,000 new jobs versus the 140,000 that were expected. This marked the lowest number of new jobs added in the private sector since August. The job growth that was previously reported for November (+146,000) was unrevised.

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Market Update — December 2024

Local real estate market

With the data from November 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 5,466 homes were sold in November 2024 (compared to 4,367 in November 2023). The median price of $645,000 which represents a 7.3% increase YOY. This total sale volume translates to a dollar value of about $4.3B.

New construction: 737 new construction homes were sold in November 2024. The median sale price of new construction homes was $750,000.

Months of inventory: Given the current quantity of supply, it’ll take 2.31 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in November 2024 were Snohomish (1.37), Kitsap (1.72), King (1.91), Thurston (1.99), and Pierce (2.1). The data indicates the persistent shortage of supply relative to demand.

New listings: 4,768 new listings were added to the NWMLS database in November 2024 representing an increase of 3.8% compared to November 2023.

Mortgage rates: This month the Freddie Mac rate shows no major month-over-month change.

Broader U.S. economy

Low Fire, Low Hire Trend Lingers: Initial Jobless Claims rose 9,000 in the latest week, with 224,000 people filing for unemployment benefits for the first time. However, Continuing Claims fell by 25,000, as 1.871 million people are still receiving benefits after filing their initial claim. Despite this most recent decline, Continuing Claims remain elevated, now topping 1.8 million for the 26th week in a row.
Annual Home Price Growth Continues: CoreLogic’s Home Price Index showed that home prices nationwide rose 0.02% in October, which was stronger than forecasts. Prices were also 3.4% higher when compared to October of last year. CoreLogic forecasts that home prices will fall 0.03% in November and rise 2.4% in the year going forward, though their forecasts tend to be conservative.

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Market Update — November 2024

Local real estate market

With the data from October 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 6,479 homes were sold in October 2024. The median price of $650,000 which represents a 8% growth YOY. This total sale volume translates to a dollar value of about $5.3B.

New construction: 761 new construction homes were sold in October 2024. The median sale price of new construction homes was $749,990.

Months of inventory: Given the current quantity of supply, it’ll take 2.5 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in October 2024 were Snohomish (1.53), Thurston (1.77), King (1.98), and Kitsap (1.99), Pierce (2.06). The data indicates the persistent shortage of supply relative to demand.

New listings: 7,726 new listings were added to the NWMLS database in October 2024 representing an increase of 26% compared to October 2023.

Mortgage rates: This month the Freddie Mac rate slightly edged up.

Broader economy

Job Growth Stalls in October: The Bureau of Labor Statistics (BLS) reported that there were just 12,000 jobs created in October, which was well below estimates of 113,000. Negative revisions to August and September also shaved 112,000 jobs from those months combined. The unemployment rate held steady at 4.1%, though there’s important rounding information to understand about this, as noted below.
Another Record High for Home Prices: September’s Personal Consumption Expenditures (PCE) showed that headline inflation rose 0.2% from August, while the year-over-year reading fell from 2.3% to 2.1%. Core PCE, the Fed’s preferred method which strips out volatile food and energy prices, rose 0.3% monthly. The yearover-year reading held steady at 2.7%, remaining near the lowest level in over three years.

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Market Update — October 2024

Local real estate market

With the data from September 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 5,828 homes were sold in September 2024. The median price of $635,000 which represents a 5.8% growth YOY. This total sale volume translates to a dollar value of about $4.6B.

New construction: 815 new construction homes were sold in September 2024. The median sale price of new construction homes was $730,000.

Months of inventory: Given the current quantity of supply, it’ll take 2.7 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in September 2024 were Snohomish (1.62), Kitsap (1.93), Thurston (2), and Pierce (2.34). The data indicates the persistent shortage of supply relative to demand.

New listings: 8,508 new listings were added to the NWMLS database in September 2024 representing an increase of 12.7% compared to September 2023.

Mortgage rates: This month the Freddie Mac rate continued to edge down arriving at a range comparable not seen since February 2023.

Broader economy

Consumer Inflation Trending in Right Direction: August’s Personal Consumption Expenditures (PCE) showed that headline inflation rose 0.1% from July, while the year-over-year reading fell from 2.5% to 2.2%. Core PCE, the Fed’s preferred method which strips out volatile food and energy prices, also rose 0.1% monthly. The year-over-year reading ticked higher from 2.6% to 2.7%, remaining near the lowest level in three years.
Another Record High for Home Prices: The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.2% from June to July after seasonal adjustment, breaking the previous month’s all-time high. Home values in July were also 5% higher than a year earlier, following a 5.5% gain in June. Case-Shiller’s 10-city (+6.8% YoY) and 20-city (+5.9% YoY) indices showed even higher growth than the nationwide figures, showing that big cities are outperforming the rest of the nation. In addition, lower-priced homes appreciated at a faster rate than the overall market, which makes sense as there is greater demand at the lower end of the market.

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Market Update — September 2024

Local real estate market

With the data from August 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 6,727 homes were sold in August 2024. The median price of $645,000 which represents a 4.9% growth YOY. This total sale volume translates to a dollar value of about $5.4B.

New construction: 834 new construction homes were sold in August 2024. The median sale price of new construction homes was $720,000.

Months of inventory: Given the current quantity of supply, it’ll take 2.3 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in August 2024 were Snohomish (1.41), Kitsap (1.61), Thurston (1.7), King (2.08), and Pierce (2.08). The data indicates the persistent shortage of supply relative to demand.

New listings: 8,941 new listings were added to the NWMLS database in August 2024 representing an increase of 9.7% compared to August 2023.

Mortgage rates: This month the Freddie Mac rate continued to edge down and arriving at a range comparable not seen since May 2023.

Broader economy

Consumer Inflation Continues to Moderate: Inflation has been moderating and is heading toward the Fed’s 2% target as measured by Core Personal Consumption Expenditures (PCE). The cooling consumer inflation we’ve seen in recent months combined with signs that the job market is slowing have led to growing calls for the Fed to begin cutting their benchmark Fed Funds Rate, which is the overnight borrowing rate for banks
Home Prices Hit Another New High: The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.2% from May to June after seasonal adjustment, breaking the previous month’s all-time high. Home values in June were also 5.4% higher than a year earlier, following a 5.9% gain in May.

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Market Update — August 2024

Local real estate market

With the data from July 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 6,615 homes were sold in July 2024. The median price of $650,000 which represents a 5.7% growth YOY. This total sale volume translates to a dollar value of about $5.5B.

New construction: 725 new construction homes were sold in July 2024. The median sale price of new construction homes was $740,000.

Months of inventory: Given the current quantity of supply, it’ll take 2.29 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in July 2024 were Snohomish (1.5), Thurston (1.81), Kitsap (1.88), and King (1.95). The data indicates the persistent shortage of supply relative to demand.

New listings: 9,281 new listings were added to the NWMLS database in July 2024 representing an increase of 13.1% compared to July 2023.

Mortgage rates: The Freddie Mac rate has edged and stayed down from it’s high in October/November 2023.

Broader economy

Fed Holds Rates Steady, Hints at September Cut: After eleven rate hikes since March 2022, the Fed once again left their benchmark Federal Funds Rate unchanged at a range of 5.25% to 5.5%. This decision was unanimous and marks the eighth straight meeting they held rates steady. The Fed Funds Rate is the interest rate for overnight borrowing for banks and it is not the same as mortgage rates. The Fed has been aggressively hiking the Fed Funds Rate throughout this cycle to try to slow the economy and curb the runaway inflation that became rampant over the last few years.
Private Payrolls Hit Lowest Level Since January: Job creation among private employers slowed for the fourth straight month, per ADP’s Employment Report, which showed employers added 122,000 new jobs in July versus the 150,000 that had been forecasted. Large gains in trade and transportation, construction, and leisure and hospitality were offset by losses seen in the information and professional and business services sectors. Small businesses also continue to struggle, as those with fewer than 50 employees lost 7,000 jobs. This is compared to 132,000 new jobs added among medium and large companies combined.

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Market Update — July 2024

Local real estate market

With the data from June 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 6,627 homes were sold in June 2024. The median price of $650,000 which represents a 4% growth YOY. This total sale volume translates to a dollar value of about $5.4B.

New construction: 859 new construction homes were sold in June 2024. The median sale price of new construction homes was $725,000.

Months of inventory: Given the current quantity of supply, it’ll take 2.17 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in June 2024 were Snohomish (1.37), Thurston (1.55), Kitsap (1.60), King (1.94), and Pierce (2.00). The data indicates the persistent shortage of supply relative to demand.

New listings: 9,984 new listings were added to the NWMLS database in June 2024 representing an increase of 5.3% compared to June 2023.

Mortgage rates: The Freddie Mac rate has edged and stayed down from it’s high in October/November 2023.

Broader economy

Fed Holds Rates Steady, Indicates One Cut in 2024: After eleven rate hikes since March 2022, the Fed once again left their benchmark Federal Funds Rate unchanged at a range of 5.25% to 5.5%. This decision was unanimous and marks the seventh straight meeting they held rates steady.
Consumer Inflation Takes Important Steps Lower: The Producer Price Index (PPI), which measures inflation on the wholesale level, was also below estimates last month. Headline PPI fell 0.2% in May, with the annual reading also moving lower from 2.3% to 2.2%. Core PPI, which strips out volatile food and energy prices, was flat in May and the year-over-year reading fell from 2.4% to 2.3%.

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Market Update — June 2024

Local real estate market

With the data from May 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 6,689 homes were sold in May 2024. The median price of $660,000 which represents a 7% growth YOY. This total sale volume translates to a dollar value of about $5.6B.

New construction: 904 new construction homes were sold in May 2024. The median sale price of new construction homes was $772,535.

Months of inventory: Given the current quantity of supply, it’ll take less than two months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The three counties with the lowest months of inventory in May 2024 were Snohomish (1.16), King (1.55), and Pierce (1.67). Once again, the data substantiates the persistent shortage of supply relative to demand.

New listings: 11,572 new listings were added to the NWMLS database in May 2024. This is an increase of 25.1% from May 2023.

Mortgage rates: While the Freddie Mac rate has edged and stayed down from it’s high in October/November 2023, it’s further slightly edged down from April 2024.

Broader economy

Big Discrepancy in Jobs Data: The Bureau of Labor Statistics (BLS) reported that there were 272,000 jobs created in May, which was much stronger than the 185,000 new jobs that had been forecasted. However, negative revisions to March and April cut 15,000 jobs in those months combined while the unemployment rate rose from 3.9% to 4%, which is the highest since January 2022.
Opportunity in Housing Remains Strong: CoreLogic’s Home Price Index showed that home prices nationwide rose 1.1% in April after rising 1.2% in March, showing that home price appreciation remains strong this spring. Prices are also 5.3% higher when compared to April of last year. CoreLogic forecasts that home prices will rise 0.8% in May and 3.4% in the year going forward, though their forecasts are typically on the conservative side so it’s possible appreciation will be even higher.

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Market Update — May 2024

Local real estate market

With the data from April 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 5,847 homes were sold in April 2024. The median price of $651,000 which represents a +7.9% growth YOY. This translates to a dollar value of about $4.9B.

New construction: 833 new construction homes were sold in April 2024. The median sale price of new construction homes was $749,990.

Months of inventory: Given the current quantity of supply, it’ll take around 1.7 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The four counties with the lowest months of inventory in April 2024 were were Snohomish (0.83), King (1.27), Thurston (1.47), Pierce (1.48), and Cowlitz (1.57). So the current data confirms the enduring shortage of supply relative to demand in the area.

New listings: 9,636 new listings were added to the NWMLS database in April 2024. This is an increase of 31.9% from April 2023.

Mortgage rates: While the Freddie Mac rate has edged and stayed down from it’s high in October/November 2023, it is showing signs of a slight increase in April 2024.

Broader economy

Fed Shuts Down Rate Hike Chatter: After eleven rate hikes since March 2022, the Fed once again left their benchmark Federal Funds Rate unchanged at a range of 5.25% to 5.5%. This decision was unanimous and marks the sixth straight meeting they held rates steady. The Fed Funds Rate is the interest rate for overnight borrowing for banks and it is not the same as mortgage rates. The Fed has been aggressively hiking the Fed Funds Rate throughout this cycle to try to slow the economy and curb the runaway inflation that became rampant over the last few years.
Job Openings Hit 3-Year Low: The latest Job Openings and Labor Turnover Survey (JOLTS) showed that job openings contracted to 8.488 million in March, down from 8.813 million in February and well below estimates. The hiring rate fell from 3.7% to 3.5%, while the quit rate fell from 2.2% to 2.1%.

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Market Update — April 2024

Local real estate market

With the data from March 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 5,165 homes were sold in March 2024. The median price of $633,717 which represents a +7.4% growth YOY. This translates to a dollar value of about $4.1B.

New construction: 915 new construction homes were sold in March 2024. The median sale price of new construction homes was $739,000.

Months of inventory: Given the current quantity of supply, it’ll take around 1.6 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The four counties with the lowest months of inventory in March 2024 were were Snohomish (0.8), King (1.23), Pierce (1.39), and Kitsap (1.41). So the current data confirms the enduring shortage of supply relative to demand in the area.

New listings: 8,028 new listings were added to the NWMLS database in March 2024. This is an increase of 1.6% from March 2023.

Mortgage rates: The Freddie Mac rate has edged and stayed down from it’s high in October/November 2023.

Broader economy

Inflation progress stalls: The latest Consumer Price Index (CPI) showed higher than expected inflation in March, with the headline reading up 0.4% from February. On an annual basis, CPI moved in the wrong direction, rising from 3.2% to 3.5%. The Core measure, which strips out volatile food and energy prices, increased 0.4% while that annual reading remained at 3.8% (though it was expected to decline to 3.7%).
March Job Gains Roared in Above Estimates: The Bureau of Labor Statistics (BLS) reported that there were 303,000 jobs created in March, which was much stronger than expectations of 200,000 new jobs. Revisions to January and February added 22,000 jobs in those months combined. However, losses in full-time jobs were offset by gains among part-time workers and multiple job holders. The unemployment rate fell from 3.9% to 3.8%. It has remained in a narrow range between 3.7% and 3.9% since last August.

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Market Update — March 2024

Local real estate market

With the data from February 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 4,189 homes were sold in February 2024. The median price of $608,111 which represents a +6% growth YOY. This translates to a dollar value of about $3.2B.

New construction: 848 new construction homes were sold in February 2024. The median sale price of new construction homes was $730,000.

Months of inventory: Given the current quantity of supply, it’ll take around 1.8 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The four counties with the lowest months of inventory in February 2024 were Snohomish (0.88), King (1.47), Pierce (1.60), and Thurston (1.71). So the current data confirms the enduring shortage of supply relative to demand in the area.

New listings: 6,153 new listings were added to the NWMLS database in February 2024. This is an increase of 25% from February 2023.

Mortgage rates: The Freddie Mac rate has edged and stayed down from it’s high in October/November 2023.

Broader economy

Consumer inflation: The latest Consumer Price Index (CPI) showed that inflation rose 0.4% from January to February, coming in right around forecasts. CPI also rose from 3.1% to 3.2% year over year, which was above the expected unchanged reading. Core CPI, which strips out volatile food and energy prices, increased 0.4% while the annual reading fell from 3.9% to 3.8%. Both figures were slightly higher than estimates.
Wholesale inflation: The Producer Price Index (PPI), which measures inflation on the wholesale level, rose 0.6% in February, doubling market estimates. On an annual basis, PPI rose from 1% to 1.6%, well above the 1.1% that was forecasted. Core PPI, which strips out volatile food and energy prices, was hotter than expected with a 0.3% rise. The year-over-year reading remained at 2%, just above forecasts.

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Market Update — February 2024

Local real estate market

With the data from January 2024 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 3,364 homes were sold in January 2024 with the median price of $593,500, which represents a +6.5% growth YOY. This translates to a dollar value of about $2.4B.

New construction: 617 new construction homes were sold in January 2024. The median sale price of new construction homes was $700,000.

Months of inventory: Inventory has shrunk by about 16.4% YOY. Given the current quantity of supply, it’ll take around 2.1 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The four counties with the lowest months of inventory in January 2024 were Snohomish (0.84), Thurston (1.69), King (1.78), and Pierce (1.82). So the current data confirms the enduring shortage of supply relative to demand in the area.

New listings: 4,954 new listings were added to the NWMLS database in January 2024. This is an increase of 0.6% from January 2023.

Mortgage rates: The Freddie Mac rate has edged down from it’s high in November 2023 approaching 6.6%.

Broader economy

Fed Funds Rate Likely at Its Peak: After a period of aggressive rate hikes that began in March 2022, the Fed once again left their benchmark Federal Funds Rate unchanged at a range of 5.25% to 5.5%. This decision was unanimous and marked the fourth straight meeting where the Fed paused additional hikes.
Home Prices Moving on Up: The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.2% from October to November after seasonal adjustment. This marked the tenth straight month of gains and a new record high. Home values in November were also 5.1% higher than a year earlier, with S&P DJI’s Head of Commodities, Brian D. Luke, noting that “November’s year-over-year gain saw the largest growth in U.S. home prices in 2023.” The Federal Housing Finance Agency’s (FHFA) House Price Index also saw home prices rise 0.3% from October to November and 6.6% year-over-year, with their index setting new record highs in home prices every month since February. Note that FHFA’s report measures home price appreciation on single-family homes with conforming loan amounts, which means it most likely represents lower-priced homes. FHFA also does not include cash buyers or jumbo loans, and these factors account for some of the differences in the two reports.

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Market Update — January 2024

We believe timely and relevant data is key to making good decisions. To this end, we are committed to providing our community and clients with actionable data and insights about the local real estate market.

Local real estate market

With the data from December 2023 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 4,018 homes were sold in December 2023 with the median price of $597,975, which represents a +4.9% growth YOY. This translates to a dollar value of about $3B.

New construction: 729 new construction homes were sold in December 2023. The median sale price of new construction homes was $700,000, which represents a -5.4% decline YOY.

Months of inventory: At the current rate of sales, it’ll take around 1.9 months for every listed home to sell. This indicates inventory has shrunk by about 9% YOY. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. So the current data point confirms the enduring shortage of supply relative to demand in the area.

New listings: 2,884 new listings were added to the NWMLS database in December 2023. This is a decrease of -3.2% from December 2022, which exacerbates the low supply. This indicates fewer property owners are likely to be interested in selling their homes exacerbating the chronic shortage of supply.

Mortgage rates: The Freddie Mac rate has edged down from it’s high in November 2023 towards 6.7%.

Broader economy

Private Sector Job Growth Beats Expectations: Nela Richardson, chief economist for ADP, noted that “we’re returning to a labor market that’s very much aligned with pre-pandemic hiring.” She also explained that “while wages didn’t drive the recent bout of inflation, now that pay growth has retreated, any risk of a wage-price spiral has all but disappeared.”
“Annual “Core” Consumer Inflation Falls Below 4%: Inflation has made significant progress lower after peaking in 2022, with the headline reading now at 3.4% (down from 9.1%) and the core reading at 3.9% (down from 6.6%). Remember, the Fed began aggressively hiking the Fed Funds Rate (the overnight borrowing rate for banks) in March 2022 to try to slow the economy and curb runaway inflation. Following eleven hikes in this cycle, the Fed pressed pause at their last three meetings in 2023, as signs of cooling inflation grew. Will the progress we’ve seen on inflation be enough for the Fed to shift from rate hikes to rate cuts later this year, as many economists expect?

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Market Update — December 2023

Local real estate market

With the data from November 2023 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

Homes sold: 4,367 homes were sold in November 2023 with the median price of $601,342 (up from $575,000 YOY). This translates to a dollar value of about $3.2B.

New construction: 704 new construction homes were sold in November 2023. The median sale price of new construction homes was $689,385.

Months of inventory: At the current rate of sales, it’ll take around 2.3 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. So the current data point confirms the enduring shortage of supply relative to demand in the area.

New listings: 4,595 new listings were added to the NWMLS database in November 2023. This is a decrease of -6% from November 2022, which exacerbates the low supply. This indicates fewer property owners are likely to be interested in selling their homes exacerbating the chronic shortage of supply.

Mortgage rates: The Freddie Mac rate has edged down towards 7%.

Broader economy

October’s Consumer Price Index (CPI) showed that inflation was flat compared to September, with this monthly reading coming in below the consensus estimate of a 0.1% gain. On an annual basis, CPI fell from 3.7% to 3.2%, near the lowest level in more than two years. Core CPI, which strips out volatile food and energy prices, increased 0.2% while the annual reading declined from 4.1% to 4%, reaching a two-year low. Declining gasoline and used car prices and moderating shelter costs helped keep a lid on inflation last month, even in the face of rising costs for motor vehicle and health insurance.

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Market Update — November 2023

Local real estate market

With the data from October 2023 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

New construction: 687 new construction homes were sold in October 2023. The median sale price of new construction homes was $695,502.

Months of inventory: At the current rate of sales, it’ll take around 2 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. So the current data point confirms the enduring shortage of supply relative to demand in the area.

Homes sold: 5,291 homes were sold in October 2023 with the median price of $602,000. This translates to a dollar value of about $3.9B.

New listings: 6,134 new listings were added to the NWMLS database in October 2023. This is a decrease of -15.5% from October 2022, which exacerbates the low supply. This indicates fewer property owners are likely to be interested in selling their homes exacerbating the chronic shortage of supply.

Mortgage rates: The Freddie Mac rate has been stable around 7.5%.

**Average 30-Year Fixed Mortgage Rates — September 2022 to September 2023 (Source: Freddie Mac)**

Broader economy

Housing Starts (which measure the start of construction on homes) rebounded in September after reaching two-year lows in August, up 7% for the month. While the bulk of the increase came in multifamily units, starts for single-family homes also rose 3.2%. Building Permits, which are indicative of future supply, did decline 4.4% from August while permits for single-family homes reached their highest level in a year.
There has been a growing chorus of Fed members who are inclined to hold rates steady at their next meeting on November 1, given the progress made toward taming inflation and tightening conditions. This includes New York Fed President John Williams, Vice Chair Michael Barr, Fed Governors Phillip Jefferson and Christopher Waller, Atlanta Fed President Raphael Bostic, San Francisco Fed President Mary Daly, Dallas Fed President Lorie Logan and Philadelphia Fed President Patrick Harker. Remember, the Fed has been hiking its benchmark Fed Funds Rate (which is the overnight borrowing rate for banks) to try to slow the economy and curb inflation.

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Market Update — October 2023

Local real estate market

With the data from September 2023 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

New construction: 724 new construction homes were sold in September 2023. The median sale price of new construction homes was $698,866 (+2.4% MOM).

Homes sold: 5,722 homes were sold in September 2023 with the median price of $600,000. This translates to a dollar value of about $4.2B.

New listings: 7,551 new listings were added to the NWMLS database in September 2023. This is a decrease of -19.9% from September 2022, which exacerbates the low supply. This indicates fewer property owners are likely to be interested in selling their homes exacerbating the chronic shortage of supply.

Mortgage rates: The Freddie Mac rate has inched upward over the past month hovering just below 7.5%.

Broader economy

August’s Personal Consumption Expenditures (PCE) showed that headline inflation increased by a lower-than-expected 0.4%. The year-over-year reading rose from 3.4% to 3.5%, though the increase was due to revisions in prior reporting. Core PCE, the Fed’s preferred method which strips out volatile food and energy prices, rose by 0.1% in August with the year-over-year reading falling from 4.3% to 3.9% – the lowest level in two years.
The Fed has hiked its benchmark Fed Funds Rate (the overnight borrowing rate for banks) eleven times since March of last year to try to slow the economy and curb inflation. While inflation is still elevated, it has made a big improvement from the 7.1% peak seen last year and is now less than half that amount at 3.5% on the headline reading

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Market Update — September 2023

Local real estate market

With the data from August 2023 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

New construction: 800 new construction homes were sold in August 2023. The median sale price of new construction homes was $682,673.

Months of inventory: At the current rate of sales, it’ll take around 1.71 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. So the current data point confirms the enduring shortage of supply relative to demand in the area.

Homes sold: 6,734 homes were sold in August 2023 with the median price of $615,000. This translates to a dollar value of about $5.2B.

New listings: 8,152 new listings were added to the NWMLS database in August 2023. This is a decrease of -17.8% from August 2022, which exacerbates the low supply. This indicates fewer property owners are likely to be interested in selling their homes exacerbating the chronic shortage of supply.

Mortgage rates: The Freddie Mac rate has been stable over the past month hovering just below 7%.

Broader economy

The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.7% from May to June after seasonal adjustment, marking the fifth consecutive month of gains. Prices were flat when compared to June 2022, which was when prices peaked in this report.
The Bureau of Labor Statistics (BLS) reported that there were 187,000 jobs created in August. While this was slightly better than estimates, job growth in June and July was revised lower substantially, subtracting 110,000 jobs in those months combined. The unemployment rate also rose from 3.5% to 3.8%.

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Market Update — August 2023

Local real estate market

With the data from July 2023 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).

Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:

New construction: 721 new construction homes were sold in July 2023. The median sale price of new construction homes was $705,000.

Months of inventory: At the current rate of sales, it’ll take around 1.76 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. So the current data point confirms the enduring shortage of supply relative to demand in the area.

Homes sold: 6,247 homes were sold in July 2023 with the median price of $615,000. This translates to a dollar value of about $4.8B.

New listings: 8,205 new listings were added to the NWMLS database in July 2023. This is a decrease of -30.5% from July 2022, which exacerbates the low supply. This indicates fewer property owners are likely to be interested in selling their homes exacerbating the chronic shortage of supply.

Mortgage rates: The Freddie Mac rate has been stable over the past month hovering just below 7%.

**Average 30-Year Fixed Mortgage Rates — August 2022 to August 2023 (Source: Freddie Mac)**

Broader economy

CoreLogic’s Home Price Index showed that home prices nationwide rose for the fifth straight month, up 0.5% from May to June. Prices were also 1.6% higher when compared to June of last year. CoreLogic forecasts that home prices will rise 0.6% in July and 4.3% in the year going forward. Zillow also reported that home values have increased 4.8% this year. They’re forecasting that home values will rise 6.3% from June 2023 to June 2024, and predicting that 48 of the nation’s 200 largest markets will see increases of 7% or more.
While inflation is still elevated, it has made a big improvement from the 7% peak seen last year and is now less than half that amount at 3% on the headline reading. This welcome news not only signifies lower costs for some goods and services, but lower inflation also typically helps both Mortgage Bonds and mortgage rates improve over time.