Fourth Quarter Equestrian Home
Market Update
The median sale price for an equestrian home in Pierce, King, Kitsap and Thurston counties in the fourth quarter of 2023 was $811,500 – 6% lower than it was 12 months earlier. This drop is a little surprising, given the fact that median prices were up year over year in the third quarter. With fewer and fewer homes selling, limited data points may be skewing median home prices, making them less useful as an indicator of current market values.
Though median sale prices for equestrian properties are up year over year in Pierce, Kitsap and Thurston counties, the median price in King County is 20% lower than it was 12 months ago. Because sales volume is highest in King County, their drop in value is responsible for an overall drop in the region’s median home price for equestrian properties.
Only 82 equestrian properties were sold in the fourth quarter of 2023 in Pierce, King, Kitsap and Thurston counties. That’s a 39% drop in sales activity when compared to the fourth quarter of 2022 and a whopping 69% drop when compared to the fourth quarter of 2021. Sales activity is unlikely to improve until mortgage interest rates drop, at which point more home owners may consider selling.
On average, equestrian homes in Pierce, King, Kitsap and Thurston counties have been taking 6-8 weeks to move from “active” to “pending” – about the same pace that we were experiencing 12 months ago.
The number of horse properties available for sale in Pierce, King, Kitsap and Thurston counties has been holding steady, with about 3 months of available inventory. A balanced market in which buyers and sellers are on equal footing requires 4-6 months of inventory. It’s still technically a seller’s market, but it doesn’t necessarily feel that way.
Current Market Conditions
-
- Windermere economist Matthew Gardner predicts that mortgage interest rates could fall as low as 6% in 2024, depending on when the Fed makes cuts, how often and by how much. Rates are currently hovering around 7.5%. Gardner also predicts flat prices in 2024 and a modest uptick in sales activity.
-
- National Association of Realtors chief economist Lawrence Yun also predicts a flat market in 2024, but he’s more optimistic about sales activity, predicting a 13.5% increase this year.
-
-
- Redfin chief economist Daryl Fairweather’s predictions are more conservative. She believes we’ll see a slight drop in home prices in 2024, in response to increased inventory levels, but that mortgage interest rates won’t go below 6.6% before 2025.
- Redfin also predicts a wave of boomerang migration as remote workers are forced to return to the office in greater numbers, many in tech-centric metro markets like Seattle. That bodes well for our local housing trends.
-
- News outlet Axios reports that Seattle is 9th in the nation when it comes to cost of living, making it more affordable than New York and San Francisco but less affordable than Denver and San Diego.
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
© 2020 Windermere Real Estate
