May house prices up 10%, inventory up 11.5%

Published 6:40 am Sunday, June 9, 2024

LONG BEACH — Overall, the median selling price of Pacific County houses increased nearly 10% in May, while houses in south county went up a more modest 2%, according to monthly statistics from Northwest Multiple Listing Service.

Washington counties covered by NWMLS saw an overall increase of 7% in the median price of sold homes to $660,000. The median price of Pacific County houses was $365,000, among the lowest in the state.

The pace of house sales increased about 16% countywide last month compared to May 2023, while south county sales were up 26% year-over-year. The end of the month saw a slight decrease in pending sales of about 7% countywide and 3% in the south, where most sales occur.

“Pending” indicates mutually agreed-upon deals that are awaiting final details. “Median” means half sold for more and half for less.

Washington counties covered by NWMLS saw an overall increase of 6% in the number of closed sales transactions compared to May 2023. Twelve of the 26 counties covered by NWMLS in Washington saw an increase in the number of homes sold year over year, while 13 saw a decrease.

Pacific County’s inventory of houses was up 11.5% from May 2023 and stood at 174 as the month ended. There also continues to be a near-glut of condos available, with 24 for sale — more than double the 11 on the market a year earlier. Four south county condos sold last month for a median of $210,950, down from $462,500 in May 2023. In a relatively small market, the quality and condition of condos sold can cause wide swings in median price.

The number of homes on the market increased throughout Washington with 24 out of 26 NWMLS counties seeing a year-over-year increase. Overall, there was a 41% increase in active property listings in the 26 counties.

“The real estate market has continued to pick up in accordance with typical seasonal patterns, with further increases in activity expected as we move fully into the summer months,” according to NWMLS’s monthly analysis. “The overall number of homes sold and the median sales price of those homes increased year-over-year. Interest rates have only slightly decreased over the past month, by 0.14 percentage points, to 7.03%. This means that prospective buyers’ purchasing power and prospective sellers’ willingness to give up their low interest rate mortgages continues to be constrained. However, for-sale inventory levels have increased dramatically year-over-year, which should help to stabilize home prices.”

“Year-over-year inventory levels have improved dramatically relative to May 2023, increasing by 41%,” said Steven Bourassa, director of the Washington Center for Real Estate Research. “The number of year-over-year closed sales transactions saw a 6% increase, signaling that buyers and sellers are beginning to adjust to the higher interest rate environment. Higher levels of for-sale inventory should have an impact in stabilizing price levels over the summer months.”