Fourth Quarter Equestrian Home
Market Update
Increased mortgage interest rates have definitely had a cooling effect on the equestrian home market in the past 6-9 months. Fewer homes are selling, and it’s taking longer to get those homes sold. Despite the slowdown in the equestrian home market, inventory levels remain low, making a meaningful drop in home values unlikely. In fact, we may actually see some appreciation in 2023 in select counties.
The median sale price for equestrian homes in King County is 9% higher now than it was in the fourth quarter of 2021. That’s impressive when compared to the broader residential housing market, which isn’t performing as well. Median equestrian home sale prices are down 13-15% in Pierce and Thurston counties, though small sample size may be skewing the numbers. The same skewing is likely in Kitsap County, where equestrian home prices appear to be up.
Year over year sales activity is down across the board. Only 69 equestrian homes were sold in King, Pierce, Thurston and Kitsap counties in the fourth quarter of 2022 – a significant 43% decrease in sales activity compared to the fourth quarter of 2021. The lion share of the slowdown has been in Pierce County for reasons that aren’t completely clear. This sluggishness in the equestrian home market is likely to continue until mortgage interest rates improve.
Horse properties aren’t selling nearly as quickly as they did during the pandemic. On average, it’s taking about two months for equestrian listings to go from active to pending.
The number of equestrian homes for sale in the Puget Sound region remains relatively low. A lot of home owners are reluctant to let go of their super low interest rates in order to make a move, which means they’re not putting their houses on the market. Low inventory levels will likely prevent a meaningful loss in home values.
Current Market Conditions
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- Realtor.com chief economist Danielle Hale predicts that sales activity in 2023 will be 14% lower than it was in 2022.
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- National Association of Realtors chief economist Lawrence Yun predicts that mortgage interest rates will improve in 2023, settling around 5.7% by the end of the year, but that home values will remain flat until 2024.
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- New construction permit applications are down 17% year over year. State legislatures will likely consider bills in 2023 that change land use guidelines and ease regulatory obstacles in an effort to stimulate development.
- With housing inventory levels unlikely to rise in the near term, a traditional buyer’s market is unlikely in 2023. That said, sellers will have to be more realistic about what the market will bear when setting list prices, given increasing affordability issues for buyers.
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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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