Second Quarter Equestrian Home
Market Update
The median sale price for an equestrian home in Pierce, King, Kitsap and Thurston counties in the second quarter of this year was $888,000 – 11% higher than it was 12 months ago. Buyer demand is still outpacing housing supply, in spite of high interest rates. That means home prices are likely to continue rising, particularly at lower price points.
Median sale prices were down year over year in King and Pierce counties this quarter, despite the fact that equestrian home values were up in the region as a whole. Home prices were up 16% in Thurston County and up 2% in Kitsap when compared to the second quarter of 2022. Thurston and Kitsap counties offer good upside potential, given their distance from Seattle amenities, so it’s not completely surprising to see home values on the rise there.
Only 126 equestrian properties were sold in the second quarter of 2023 in Pierce, King, Kitsap and Thurston counties. That’s a 44% drop in sales activity when compared to the second quarter of 2022. High interest rates and limited inventory are both contributing to the slow down.
The pace of the equestrian home market picked up a little this spring, but things are still moving quite a bit slower than they were 12 months ago. On average, equestrian homes in Pierce, King, Thurston and Kitsap counties have been taking 1-2 months to move from “active” to “pending.”
The number of horse properties available for sale in Pierce, King, Thurston and Kitsap counties has been holding steady, with about 2-3 months worth of inventory available. A balanced market in which buyers and sellers are on equal footing requires 4-6 months worth of inventory – so it’s still technically a seller’s market.
Current Market Conditions
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- The Fed has paused their interest rate hikes temporarily, but additional rate increases are expected this year. That means that mortgage interest rates are almost certainly going to get worse before they get better. Relief isn’t expected until 2024.
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- The U.S. mortgage delinquency rate remains extremely low at 3.1%, making a meaningful increase in foreclosures unlikely.
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- According to the National Association of Realtors, pending home sales have been down this spring because of persistently low inventory levels.
- Bankrate ranked the Seattle-Tacoma-Bellevue metro area at #2 on their list of the best places to start a career, which means we’re likely to continue seeing transplants to the area.
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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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