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Unveiling the Strength of Washington's Real Estate Market: NAR Report for December 2024

Writer's picture: Kimberly SutKimberly Sut

The National Association of REALTORS® (NAR) recently released its report on existing-home sales in the United States, shedding light on the remarkable resilience of the real estate market as the year came to a close. As the conditions in the market shift, many potential buyers and sellers are looking closely at trends and data to make informed decisions.


This post delves into the key findings from the December 2024 report, exploring the sales performance, inventory fluctuations, and price movements that shape Washington's real estate landscape.


A Closer Look at Existing-Home Sales


In December, existing-home sales reached a seasonally adjusted annual rate of 4.24 million, reflecting a 2.2% increase from November. Even more impressively, sales advanced 9.3% year-over-year, climbing from 3.88 million in December 2023.


Such growth in existing-home sales is significant, particularly when considered in the context of the overall annual performance, which saw a total of 4.06 million sales—the lowest level recorded since 1995.


The ongoing recovery indicates that Washington's real estate market is navigating through challenging waters, and participants are starting to adjust to elevated mortgage rates that have characterized the housing sector.



Regional Performance and Trends


While existing-home sales advanced in three major U.S. regions, the Midwest experienced a decline. This variation in performance showcases the complexity of the housing market across the nation, where local factors can significantly influence trends.


According to Lawrence Yun, Chief Economist at NAR, consumers appear to recognize the long-term benefits of homeownership, despite current market challenges. Job growth, wage increases, and rising inventory are contributing positively to sales momentum as the market shifts into the new year.



Inventory Insights


Total housing inventory at the end of December measured 1.15 million units—down 13.5% from the previous month. However, this number is up 16.2% from the same time last year, indicating a shift toward increased availability in the marketplace.


Experience shows that unsold inventory currently sits at a 3.3-month supply, a slight decrease from November’s 3.8 months but a rise from 3.1 months in December 2023. This fluctuation in inventory levels reveals a dynamic market where more homes are becoming available just as demand shows signs of revival—a combination that could enhance buyer confidence in the upcoming months.



Median Home Prices on the Rise


The median existing-home price for all housing types in December reached $404,400, marking a 6.0% increase compared to $381,400 in December of the previous year. This price growth reflects a broader trend observed across all four U.S. regions, highlighting an ongoing demand for homes, even amid economic uncertainties.


Interestingly, a significant driver of this price increase comes from the upper-end market, where sales surged by 35% for homes priced above $1 million. However, homes priced under $250,000 faced declining sales, suggesting that entry-level buyers are feeling the impact of rising rates and limited options in affordable housing.



High angle view of a modern suburban neighborhood
A scenic high-angle view showcasing a modern suburban neighborhood with well-maintained homes and landscaped yards.

Confidence in the Market

The REALTORS® Confidence Index reported that properties typically remained on the market for about 35 days. This statistic is relevant as it indicates consumer confidence in purchasing decisions, as fewer days on the market can lead to increased competition among buyers.


Despite the seasonality of housing sales, the upward trend in home sales during the winter months signals a strong rebound and greater confidence in the Washington real estate market. With a backdrop of positive economic indicators, such as employment gains and the availability of more homes, potential buyers may find themselves more inclined to make a purchase in the coming months.



What the Future Holds


As we reflect on the results from December 2024, it's hard not to feel optimistic about the outlook for Washington's real estate market. The stabilization of home sales, coupled with increasing inventory, creates an environment ripe for growth.


The combination of lower inventory levels along with rising prices and demand means that buyers need to be prepared to act quickly. Sellers, on the other hand, have the opportunity to capitalize on this positive momentum and showcase their properties to eager buyers.


The increasing strength in the market highlights the importance of staying informed and understanding the fundamentals of real estate. Whether buying or selling, having a solid grasp of trends, inventory levels, and market conditions can make all the difference.



Conclusion


In conclusion, the December 2024 NAR report illustrates the resurgence of Washington's real estate market, emphasizing the gradual recovery of existing-home sales and the continued escalation of median prices. As potential homeowners and investors analyze these trends, now is a critical time to engage with industry professionals, understand market dynamics, and explore opportunities within the evolving real estate landscape.


The confidence buoying the market is a reminder of the value of homeownership—a long-term investment that can pave the way for economic stability and growth.


Stay tuned for upcoming market insights as we continue to monitor Washington's real estate landscape throughout 2025!



Eye-level view of a vibrant real estate open house sign
An eye-level view of a vibrant open house sign positioned in a residential neighborhood, symbolizing opportunities in the real estate market.
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