January 2024: Available inventory in our markets continues to decline due to typical seasonal patterns. Limited new listings are fueled by seller reluctance due to interest rates. They feel trapped with their low interest mortgages, limiting their ability to purchase the home that they want to purchase after they sell. Buyers are feeling limited by the lack of inventory.

Lawrence Yun, chief economist at the National Association of Realtors indicates that the worst is over and 2024 will mark a year of recovery. “Price increases have become much more moderate than the past two years,” Yun said. “That’s a good thing. Income growth is catching up with home prices.”

Incremental drops in the interest rate in recent weeks have given some hope of things to come. Economists are still indicating that rates will drop further during 2024, just not as fast as initially indicated. Most are forecasting a rate below 6.5% by the end of the second quarter.

New Listings:  Properties added to our markets in January continued to be very low. Stanwood had 24 new listings added in the month, 33% of these were new construction homes. The Camano Island market suffered seasonal lows with only 9 new listings added, less than half during the same time last year.

Pending Sales:  28 homes went pending in the Stanwood market in January, double the same time last year. In contrast, only 10 homes found a buyer on Camano Island, down by 55% from last year at this time.

Properties Sold:   January marked the lowest number of sold listings in over a year, with only 25 homes finding their buyers (6 in Camano Island, 19 in Stanwood)

Sale Price: The average sales price is skewed on Camano Island due to a limited number of sales. Of the six sales, four of them were over $850,000. Therefore, the rolling 12 months average home price is a better measurement of this market. On Camano Island this average is $752,337 (5% lower than the same time last year). In Stanwood, the average sales price of $650,990 is a better reflection of that market’s transactions.