2016 was the most active year ever for real estate sales in the Walla Walla Valley. Here are the highlights:
1. Annual MLS home sales passed the 800 mark in the Walla Walla Valley for the first time.
Low interest rates kept buyers active throughout the year in Walla Walla. The Walla Walla MLS (WWMLS) reported 838* home sales in 2016 surpassing the 2nd highest annual total of 776* sales set back in 2005. 2016’s sales were 15% higher than the previous year.
2. At year’s end, listings declined to their lowest level since December of 2005.
At the end of 2016, the WWMLS reported just 270 active listings. The last time the Walla Walla Valley had fewer homes listed for sale was 261 listings in December of 2005. Throughout the year Walla Walla maintained approximately 3 months of inventory. While this was a low level for Walla Walla, our community maintained more inventory then most communities in WA state.
3. The median sales price experienced an annual gain of 13%.
Lower inventory levels put upward pressure on prices as the market moved to a sellers market. The WWMLS reported a 2016 median sales price of $214,804, a 13% gain over the previous year.
Walla Walla Real Estate – 2017 Forecast
So what will 2017 bring? To help answer that question, here is a 2017 summary of Windermere’s Chief Economist, Matthew Gardner’s, housing market predictions:
Housing supply: There should be a modest increase in the number of homes for sale in 2017, which should relieve some of the upward pressure on price.
First Time Home Buyers: We believe 2017 will be the return of the first time home-buyer. While first time buyers will face rising interest rates and prices, a modest uptick in housing inventory should alleviate these challenges a bit. Walla Walla will also continue to experience 2nd home sales to buyers from outside our area due to being a wine destination.
Interest Rates: Interest rates will rise above current rates but will remain remarkably low. The 30-year fixed rate will rise to about 4.5% by year end.
Housing Affordability: Housing affordability has become a concern as recent price gains have escalated well above income growth. In 2017, the projected uptick in listing inventory will cause the rate of price growth to slow.
Click here for December 2016 Charts.