First Quarter Equestrian Home
Market Update
Not unlike the broader Puget Sound housing market, the equestrian home market remained sluggish in the first quarter of this year. Inventory levels are on the rise, and it’s taking quite a while for horse properties to sell in most counties. Sales activity will undoubtedly pick up as we move into the spring season, but we’re unlikely to see a sustained improvement in the market until interest rates come down.
Equestrian home values appear to be up year over year in Pierce County, but they’re 10-20% lower than they were 12 months ago in King, Kitsap and Thurston counties. It’s difficult to predict whether we’ll see a further erosion in equestrian home values in the region. Much will depend on inventory levels as we move through 2023. If inventory levels continue to increase, we could see some additional loss in value. If not, then we’ve likely seen the worst of the market correction.
Only 50 equestrian properties were sold in the first quarter of 2023 in Pierce, King, Kitsap and Thurston counties. Though this is a sizable 28% decrease in sales activity when compared to the first quarter of 2022, it’s actually an improvement from last quarter, when sales activity was down 43% year over year. We seem to be moving in the right direction.
The pace of the equestrian home market remains steady in Thurston County but slowed significantly in the first quarter of this year in Pierce, King and Kitsap counties, where equestrian homes have been taking 3-4 months on average to move from “active” to “pending.”
With the exception of Kitsap County, where inventory levels remain low, we’re starting to see a sustained increase in the number of horse properties available for sale in Pierce, King and Thurston counties. In point of fact, this increased amount of inventory (about 3-4 months worth) is pretty typical for a balanced market.
Current Market Conditions
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- According to the Mortgage Bankers Association, new mortgage applications have been at their lowest level since the early 1990s, down 44% from this time last year. Not a surprise, given the current mortgage rate environment.
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- The number of homes that went on the market in the Seattle metro area in February of this year was 42% lower than in February of 2022.
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- Realtor.com predicts that the number of homes sold in the Seattle metro area in 2023 will be 10% lower than in 2022.
- Despite persistent affordability issues and significant market headwinds, Realtor.com predicts a 7% increase in median home prices in the Seattle-Tacoma-Bellevue area in 2023, fueled almost entirely by low inventory levels.
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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 has been riding and showing American Quarter Horses since childhood and is a top-producing Realtor with Windermere Chambers Bay, specializing in equestrian property sales in King, Pierce, Kitsap and Thurston counties.
Jeff Williams: (253) 303-1135
JeffWilliams@windermere.com
Contact Jeff Williams
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