Despite the influx of California buyers, equestrian home sales activity was down this quarter, and year over year price gains have diminished. In some areas, we’ve actually seen a modest retraction in home values. Relatively low inventory levels will almost certainly help to prevent a significant loss in home values, but the equestrian home market may feel sluggish throughout the rest of this year and into 2023.
Median equestrian home prices in Kitsap and Thurston counties are essentially the same as they were a year ago, negating any price gains that we may have seen in late 2021 or early 2022. Year over year sale prices are up 10-20% in Pierce and King counties, but we’ve probably seen a slight loss in value there as well in the past few months.
101 equestrian properties were sold in Pierce, King, Kitsap and Thurston counties in the third quarter of 2022 – a significant 20% decrease in sales activity when compared to the third quarter of last year. 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 counties.
Though equestrian home sales activity has dropped off in the Puget Sound region, the horse properties that have been selling have been selling relatively quickly – in 3-4 weeks on average.
Inventory levels have started to rise in King and Pierce counties, but we still haven’t reached a balanced market where buyers and sellers are on equal footing. That typically requires about 6 months worth of inventory.
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.