Thurston County home market shows improvement in a key area, new data show

Thurston County home sales fell in February after a promising January, but it wasn’t all bad news: more homes were listed for sale last month, according to data released by Northwest Multiple Listing Service.

Sales reversed course last month, the data show. After sales rose 8% in January, single-family home sales fell 5% to 204 units last month from 215 units in February 2023.

That’s not too surprising, said Alley Savin, a real estate broker with Van Dorm Realty in Olympia who met with The Olympian at a Tumwater Hill home for sale.

A typical home sale takes 30-45 days to close, so February transactions would have started in December, one of the slowest times of the year for real estate because of the holidays, she said.

Other pressures: mortgage interest rates and median price.

Although average 30-year mortgage interest rates are no longer as high as 8% as they were in the fall, they remain elevated at 6.88%, according to Freddie Mac, the Federal Home Loan Mortgage Corporation, which tracks rates.

“Mortgage rates continue to be one of the biggest hurdles for potential home buyers looking to enter the market,” said Freddie Mac Chief Economist Sam Khater in a statement.

Median home price in Thurston County was right around $500,000 last month, up 2% from the same period a year ago.

A new report released by Agent Advice, which examined household income and home values, found that Washington state is one of the least affordable states for first-time home buyers.

What needs to change? Many have long said the supply of homes needs to increase to bring some balance to the market. The county has been mired for years in a market that favors the seller over the buyer. A market with four to six months’ of inventory would change that.

The county isn’t there yet — inventory is still under two months — but new listings grew to 302 units last month from 221 in February 2023.

When buying a home, don’t be too quick to fall in love with the new gas range in the kitchen, Savin said. She offered some advice on what budget-conscious buyers should think about when looking at a house.

Ask about the age of the roof and whether it needs to be replaced or repaired, and the larger the surface area, the more expensive it becomes, Savin said.

Buyers also should inquire about monthly utility costs and pay attention to how close the trees and shrubs are to the home — both of which can result in maintenance for the future owner, she said.

The February data

▪ Single-family home sales fell 5.1% to 204 units last month from 215 units in February 2023.

▪ Single-famliy home median price rose 2.2% to $499,900 from $489,000 over the same period.

▪ Single-family home pending sales fell 12.5% to 295 units from 337 units over the same period.

▪ Condo sales rose to 14 units from 10 units over the same period.

▪ Condo median price rose to $401,950 from $302,500 over the same period.

▪ Condo pending sales rose to 15 units from eight units over the same period.

Source: Northwest MLS