Equestrian home prices are up significantly in all counties, but it does feel like the housing market is starting to cool off.
Second Quarter Equestrian
Home Market Update
We’ve noticed a slowdown in the local housing market in the past few weeks. Showing activity and pending sales are down, and we’re starting to see some price reductions. This shift could be temporary, as potential homebuyers turn their attention to summertime fun, or it could be a much needed market rebalance.
With the first wave of COVID-related mortgage forbearance programs set to end in September, homeowners unable to make catch up mortgage payments may be forced to sell this fall. This increase in available inventory would put buyers and sellers on more even footing.
112 equestrian properties were sold in the second quarter of 2021 in Pierce, King, Kitsap and Thurston counties – a year over year increase of 38%. COVID-fueled interest in rural properties is partially responsible for this uptick in sales activity, for the rapid pace of the market and for the steep increase in equestrian home prices.
Thurston County still feels like a good value, particularly compared to King County (where the median equestrian home price has reached $1 million).
Current Market Conditions
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- According to the Mortgage Bankers Association, mortgage applications dropped off pretty significantly at the end of June, suggesting that some potential home buyers may have abandoned their plans to purchase because they’ve simply been priced out of the market.
- In March, new housing starts reached their highest level since 2006, and single family home permits are on the rise. This increase in new home construction won’t solve our inventory problem, but it will definitely help.
- According to the S&P CoreLogic Case-Shiller Home Price Index, the Seattle metro market ranks #3 in the nation for year over year price gains (behind Phoenix and San Diego). Housing prices in the Seattle area have risen 63% over the course of the past 5 years, compared to a 38% increase nationwide.
- The most recent Home Price Expectations Survey of more than a hundred economists and real estate experts forecasts continued home price appreciation for the next five years with predicted annual gains ranging from 3-8%.
Because of the unique considerations involved in buying or selling a horse property, relying on a Realtor with real world equestrian experience makes good sense. If you’re thinking about buying or selling a horse property in the Puget Sound area, please give me a call to discuss how I can put my knowledge and experience to work for you.
Jeff Williams is a top-producing Realtor with Windermere Chambers Bay, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Jeff Williams: (253) 303-1135
JeffWilliams@windermere.com
