The median sale price for an equestrian home in King County is significantly higher now than it was just 12 months ago, but price gains in Pierce, Kitsap and Thurston counties have been more modest.
Second Quarter
Equestrian Home Market Update
With mortgage interest rates hovering around 6%, potential home buyers aren’t as eager to purchase as they were just a few months ago. Multiple offer situations are less common, and year over year price gains are tapering off in Pierce (5% gain from 2021 to 2022), Kitsap (10% gain) and Thurston (15% gain) counties.
Not surprisingly, King County seems to be more immune to higher interest rates. The median price for an equestrian home in King County clocked in at $1.5M during the second quarter of this year.
103 equestrian properties were sold in the second quarter of 2022 in Pierce, King, Kitsap and Thurston counties – a 9% decrease in sales activity compared to the second quarter of 2021. The bulk of that decline was in King County, where housing prices are historically highest. It’s possible that increasing mortgage rates are pushing some potential buyers into more affordable Pierce County.
Though equestrian home sales activity has dropped off in the Puget Sound region, the horse properties that have been selling have been selling quickly – in a month or less on average, depending on location.
Though buyer demand has weakened, inventory levels are still relatively low. Depending on location, we’ve only got 1-3 months worth of equestrian home stock available. It will be interesting to see if inventory levels rise higher as we move into the second half of the year.
Current Market Conditions
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- Higher mortgage interest rates have definitely dampened home buyer interest. According to the Mortgage Bankers Association, mortgage applications were down 16% year over year in June.
- Sellers are relying pretty heavily on price reductions to get their homes sold. According to Altos Research, more than 25% of homes on the market right now have been price reduced.
- As issues of affordability persist, the number of first time home buyers continues to drop. First time home buyers comprised 28% of sales in April of this year, down from 31% just a year ago.
- Foreclosures and short sales remain historically low, representing just 1% of sales in April.
In the current real estate marketplace, it remains critical for buyers and sellers to seek expert advice. If you’re thinking about buying or selling a home in the area, please contact us to discuss how we can put our 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
