First Quarter Equestrian Home
Market Update
A 10% annual increase in equestrian home values is impressive, particularly given the fact that sales activity has been slower than we’ve seen in years. Buyer demand is weak in the face of 7% mortgage interest rates, but demand is still outpacing supply, which is why we’re starting to see sale prices above list price again. Until our housing supply increases to meet demand, Puget Sound equestrian home prices are likely continue rising.
Puget Sound equestrian home values are on the rise as a whole, with price gains in Pierce and Thurston counties more than compensating for losses in King and Kitsap. Mortgage interest rates are expected to trend down towards 6% by the end of 2024, which will increase buyer demand.
Unfortunately, the number of homes for sale is unlikely to increase until mortgage interest rates drop closer to 5%. At that point, homeowners currently sitting on mortgage interest rates in the 3% range might be willing to sell. For now, low inventory levels and increasing buyer demand will continue to apply upward pressure on home prices.
Only 90 equestrian homes were sold in King, Pierce, Kitsap and Thurston counties in the first quarter of 2024 – a 13% drop in sales activity when compared to the first quarter of 2023. Activity was particularly sluggish in Kitsap County.
On average, equestrian homes in Pierce, King, Kitsap and Thurston counties have been taking almost three months to move from “active” to “pending” – about the same pace that we were experiencing 12 months ago.
There just aren’t a lot of equestrian properties on the market in the Puget Sound region right now. Even with the market moving slowly, we’ve only got about two months worth of inventory. A balanced market would require 4-6 months worth.
Current Market Conditions
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- According to Redfin, homebuyer demand was down 15% nationwide this spring compared to the spring of 2023, likely due to an increase in affordability issues for potential homebuyers.
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- According to Fannie Mae’s most recent national housing survey, only 19% of consumers believe it’s a good time to buy a home, while 65% believe it’s a good time to sell. Hopefully that means we’ll be seeing more new listings as we head toward summer.
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- With existing homeowners reluctant to sell, new home construction has represented a larger proportion of sales than usual. Some analysts report that new construction currently accounts for 30% of all home sales nationwide – 2-3 times greater than usual.
- According to an NBC News report, the percentage of homes being bought by “absentee owners” has increased over the past few years. These “absentee” buyers are often investors purchasing with cash, making them immune to current interest rates.
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Given 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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