Year-Over-Year Home Prices for Equestrian Properties May Be Flattening

 

 

Equestrian home prices in the Puget Sound region seem to have hit a plateau this spring – with the possible exception of Pierce County, where values are up compared to last year.

 

 

 

 

 

 

 

 

 

Pierce, Kitsap and Thurston counties are all still attractively priced compared to King County. Equestrian properties are selling fairly quickly, most notably in Thurston County. Inventory levels continue to fluctuate seasonally but remain relatively low, benefitting sellers.

 

Current Market Conditions

 

• According to a recent report from Redfin, Tacoma is currently the “hottest” housing market in the country. Inventory levels are low, and homes are selling quickly.
• Median home prices in Seattle and King County are on the rise again after experiencing a significant dip at the end of last year, but prices still haven’t reached the peaks seen in early 2018.
• Geopolitical uncertainty has been applying downward pressure on mortgage interest rates, with 30-year fixed rates dropping below 4% in June. Windermere Chief Economist Matthew Gardner doesn’t expect to see rates over 4.5% before the end of the year.
• Depending on the outcome of trade and tariff discussions with China, the cost of some building materials could rise as much as 25% this year – a cost that would almost certainly be passed on to home buyers already struggling with housing affordability.
• Though wages have failed to keep pace with rising housing costs for years, wages for Washington workers did increase an average of 5.5% across all industries in 2018 – a step in the right direction.
• Apple has announced that it will be bringing 2000 new jobs to Seattle’s South Lake Union in the next five years, increasing the demand for housing in the process.
• Concerns about a potential economic slowdown persist. A Wall Street Journal survey of economists and a Duke University survey of CFOs both predict a recession in 2020.

 

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.