March was great for Thurston home sellers, but not so great for buyers. Here’s why

The last thing a prospective Thurston County home buyer probably wants to hear is that a single-family residence is getting more expensive to purchase.

But that’s what happened last month as the median price rose to a new high, according to March housing data released by the Northwest Multiple Listing Service.

Depending on which camp you’re in — buyer or seller — this is what happened: The median price of a single-family residence rose to $535,000 last month, up 7% from March 2023, the data show. The previous all-time high was $529,950, set in August 2023, The Olympian reported.

Although the number of homes sold fell 24% between March 2024 and March 2023, there was still enough demand (239 homes sold) combined with low inventory to push median price higher. Low levels of inventory continue to favor the seller over the buyer. A market that doesn’t favor either side has four to six months of inventory.

How much single-family home inventory did the county have? Less than two months, the data show. New listings also fell behind last year’s pace. There were 324 new listings last month, down from 372 in March 2023.

The added challenge for some buyers, but clearly not for all, is that mortgage interest rates remain elevated.

“With the 30-year fixed mortgage rate at 6.79% as of late March 2024, the purchasing power of prospective buyers remains constrained relative to a few years ago,” said Mason Virant, associate director of the Washington Center for Real Estate Research at the University of Washington, in a statement.

Don’t expect much interest rate relief in the near term, according to Freddie Mac, which tracks interest rates.

“While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease meaningfully in the near-term,” said Freddie Mac Chief Economist Sam Khater in a statement.

The March data

▪ Single-family home sales fell 24% to 239 units in March 2024 from 315 units in March 2023.

▪ Single-family home median price rose 7% to $535,000 from $499,990 over the same period.

▪ Single-family home pending sales fell 14.5% to 341 units from 399 units over the same period.

▪ Condo sales rose to 16 units from 10 units over the same period.

▪ Condo median price rose to $349,950 from $277,500 over the same period.

▪ Condo pending sales rose to 17 units from 15 units over the same period.

Source: Northwest MLS.