King County Market Update: September 2024 – Lowered Mortgage Rates Boost Activity, but Affordability Challenges Persist

The latest market snapshot from the Northwest Multiple Listing Service (NWMLS), released in October 2024, highlights key trends that shaped the real estate landscape in September. While mortgage rates saw a slight decline, the overall affordability of homes in King County, and throughout Washington, remains a pressing issue.

Mortgage Rates and Market Trends

In September, the Federal Reserve’s move to lower interest rates helped provide a late-season boost to the housing market. However, the 30-year fixed mortgage rate still averaged 6.08%, more than double the 3.01% rate buyers saw just three years ago in 2021. This sharp increase continues to affect the ability of many would-be buyers to enter the market.

Experts like Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER), have voiced concerns that further rate cuts are necessary to improve affordability. “It seems unlikely that the volume of transactions will pick up substantially without some significant improvement in affordability,” Bourassa noted. Despite the challenges posed by higher rates, other data points from the NWMLS report offer some positive news, particularly in the number of active listings and new homes coming to the market.

King County: Leading the Pack with High Prices

King County remains one of the most expensive housing markets in Washington state. In September 2024, the median sale price for residential homes and condominiums in King County reached $859,995. This is well above the state median of $635,000 and reflects the ongoing demand for properties in the county, despite the affordability hurdles posed by higher interest rates.

King County is not alone in its high prices. Other counties like San Juan ($829,000) and Snohomish ($760,000) also posted significant median sale prices. However, King County’s prominence as a tech hub and its proximity to Seattle ensure that demand remains strong even as price growth has begun to stabilize. The 5.8% year-over-year price increase in King County is a far cry from the double-digit jumps seen in previous years, suggesting a more balanced market where both buyers and sellers have opportunities.

Increased Inventory and Closed Sales

Across the NWMLS coverage area, the number of homes for sale saw a notable increase. The total number of active listings at the end of September 2024 grew by 31.4% compared to the same time last year, offering buyers more options. King County contributed to this surge, helping to ease the pressure on supply that has been a challenge for years.

At the same time, the number of closed sales rose slightly, with a 1.9% increase compared to September 2023. While this may seem modest, the growth in closed sales amidst affordability challenges shows that buyers are still moving forward, especially as mortgage rates dip slightly.

Consumer and Broker Activity

The September market report also gave insights into broker and consumer behavior. Property showings held steady, indicating consistent buyer interest despite affordability concerns. In addition, 16,668 properties in September 2024 were eligible for the Down Payment Resource (DPR) program, which is designed to assist buyers with down payment needs, making homeownership more accessible to some.

Looking Ahead

For those looking to buy or sell in King County, the market remains competitive, with home prices still on the high end, but more inventory and slightly lowered mortgage rates offering some opportunities. If you’re considering entering the real estate market, the team at Katrina Eileen Real Estate is here to help you navigate these conditions. Whether you're interested in buying, selling, or simply learning more, we provide expert guidance to make your real estate journey successful.

Reach out to Katrina Eileen Real Estate today for personalized support and insights into the latest market trends.