This analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Here is the Matthew Gardner Report for Q2 2022.
Some experts have expressed concern for a recession as we enter into the last half of the year. However, Matthew Gardner does not agree that our economy is headed into a recession due to the rising of employment numbers and income growth the data shows.
Overall, home sales are up 52% compared to Q1 in 2022, although, year-over-year home sales are down by an average of 11% across Western Washington. Grays Harbor County is the only region that home sales increased from this time last year. Here in Pierce County, home sales have dropped 10.2% since last year.
One of the most interesting data points is that Second Quarter growth in listing activity was palpable: 175% more homes were listed than during the first quarter and 61.98% more than a year ago. What does this mean for homebuyers? More homes to choose from!
Questions about home prices and if homes are depreciating due to rising interest rates is something that is asked frequently. Prices rose by double digits in all but four counties in Western Washington. Pierce County saw a 13% increase from this time last year. Despite rising interest rates, we can see how home prices continue to increase. Experts are predicting mortgage rates to rise throughout the end of the year, but Matthew Gardner thinks home prices will continue to rise, just at a slower pace.
Our real estate market in Western Washington is still very competitive. The demand from buyers outweighs the number of houses available, even though we’ve seen a surge with available inventory. According to Matthew Gardner, the economy “remains buoyant” which directly correlates with our local real estate market. Although the market has leveled slightly, it remains a sellers market nonetheless. In order to have a balanced market, home sales and home prices need to slow significantly.
Read the full report HERE!