Through the first half of the year Walla Walla’s Real Estate Market has experienced active sales, low inventory, and rising prices. 2017 was the second most active real estate market in Walla Walla’s MLS history but at the end of June, home sales were 6% ahead of last years pace. June was the single busiest month for home closings yet this year.
Inventory remained low but did not experience a month-over-month decline as enough new listings were brought to market during the month to replace those that sold. The seller’s market continued, especially for homes under $600,000.
Year-to-date, Walla Walla’s median price was $241,185 – a 6% increase over the previous years median price. Thus far, rising prices coupled with increasing interest rates have not dampened buyer activity. We expect the active real estate market to continue through the summer.
June’s Listings: 265*
Even after a busy closing month, the month ended with essentially the same number of active listings as the previous month. Listings were down 7% from the number of homes available at the same time a year ago.
June’s Closed Sales: 81*
June’s closings increased 20% over the previous month and equalled the number that closed during June of last year.
June’s Median Price: $257,000*
June’s median price settled 8% from the previous month and was 3% higher than June of last year.
Click here for June’s Charts.
*WWMLS WA Data
Strong buyer activity continued during the month of May in the Walla Walla Valley. Closed homes sales slowed slightly from the previous month’s pace but May still became the 2nd busiest month of the year. Thus far, annual home sales are 8% ahead of last years pace.
Heading into summer, two important things to watch will be inventory levels and rising prices. While inventory remained low in May, new listings came on the market to replenish those that sold. The month ended with a net listing increase of 6%. Yet, the trend of year-over-year listing declines continued. Walla Walla’s listing inventory was 14% lower than the number of homes listed for sale 12 months ago.
Low inventory levels coupled with strong buyer demand continued to put upward pressure on prices. May’s median price of $279,000 represented a 23% increase over the previous month. The sharp monthly increase was caused by a decrease of homes sold under $200,000 coupled with the the number of home sold in the upper price ranges of our market. The upper priced segment of our market is strengthening. Ten of the homes that closed in May were above $400,000 including two above $800,000.
May’s Listings: 266*
The month ended with 6% more listings than the previous month. However, the trend of year-over-year inventory declines continued. There were 44 more homes for sale in May of last year.
May’s Closed Sales: 67*
The month experienced a 14% decline in closed sales from the previous month and was 7% below May of last year. Yet, year-to-date sales are 8% ahead of last years pace during the same period.
May’s Median Price: $279,000*
The months median price was one of the highest monthly totals ever in Walla Walla. This was due to an increase in the closings of more upper priced homes than in previous months. For the year, Walla Walla’s median price has increased 5% over last year.
Click here for May’s monthly charts.
*WWMLS WA Data
April became the most active month for real estate this year. The month’s 77 home sales made it one of the busiest Aprils ever for the Walla Walla Valley. By month end, closed home sales had surged 12% ahead of last years pace through the same reporting period.
At the same time, enough new listings came on the market to replenish those that sold. The month ended with the same number of listings as the previous month. Inventory remained low, but this trend may be shifting. For the second month in a row, the Walla Walla Valley had more listings than the previous year. Listing inventory experienced a year-over-year monthly gain of 1%.
The seller’s market continued for Walla Walla as buyer demand remained strong, especially for homes under $400,000. While most buyers would have preferred more homes to look at, Walla Walla maintained just enough inventory to keep price increases moderate. Through the first four months, Walla Walla’s median price increased 4% over the same period a year ago.
April’s Listings: 252*
The month ended with the same number of listings as the previous month, and there were 3% more homes listed for sale than were available 12 months ago.
April’s Closed Sales: 77*
Monthly home sales jumped 37% over the previous month and 57% over April of last year. This was one of the most active Aprils in Walla Walla’s history.
April’s Median Price: $226,362*
April’s median price declined by 5% from the previous month. On the year, Walla Walla’s median price is 4% higher than the same period of last year.
Click here for April 2018 Charts.
*WWMLS WA Data
Sellers brought their homes to market in March and the buyers were ready. The Walla Walla Valley experienced a monthly increase in both home sales and listings. Exceptionally low inventory levels continued to put upward pressure on pricing. Walla Walla’s median sales price increased for the 2nd consecutive month to $238,000.
Here is how the 1st Quarter of this year compared with the 1st Quarter of last year: Closed home sales remained steady but are 3% behind last years pace. Prices increased modestly. The Quarter’s median home sale price increased 3% over the same period of last year. The interesting story was listings. For the first time in 16 months, the number of homes listed for sale experienced a year-over-year monthly gain. Although by a slim margin, March ended with 1.5% more listings than Walla Walla had 12 months ago. We expect this trend to continue as more sellers list their homes in preparation for Walla Walla’s active Spring buying season.
March’s Listings: 257*
March’s listings increased by 11% over the previous month and by 1.5% over March of last year. This was the first year-over-year monthly increase in 16 months.
March’s Closings: 55*
The months closings increased significantly (37%) over the previous month but was 11% behind the number of closing for March of last year.
March’s Median Price: $238,000*
The months median price increased by 6% over the previous month and was also 6% higher than March of last year.
Click here for March 2018 Charts.
*WWMLS WA Data
An uptick in Walla Walla Valley home sales in the final three months of 2017 pulled down housing inventory to its lowest point in more than 15 years. But listing inventory improved a bit early in the year. Some sellers, wanting to capitalize on continued buyer demand, listed their homes early in January. As a result, listing inventory grew 3.5% during the month.
January’s median price ($222,750) pulled back a bit from 2017’s median price ($227,517) but low inventory levels will continue to put upward pressure on prices. The prospect of higher prices and potentially higher interest rates continued to fuel buyers motivation.
Although 6 sales shy of last January, closed home sales got off to a steady start in the new year. What happens to sales going forward will depend on whether or not listing inventory can keep up with buyer demand.
January’s Listings: 234*
The months listings grew 3.5% over the previous month but was still 5% below last January.
January’s Closings: 50*
The month’s closed sales settled from last month and was just 6 sales behind last January’s pace.
January’s Median Price: $222,750*
The month’s median price settled 8% from the previous month but was 6% higher than last January.
Click here for January 2018 Charts.
*WWMLS WA Data
2017 finished 2nd best for home sales in the Walla Walla Valley.
The Walla Walla MLS (WWMLS) reported 799* home sales in 2017 finishing just 5% behind last years record setting pace. Low interest rates kept buyers active despite fewer homes on the market making 2017 the 2nd best year for home sales in WWMLS’s history.
At year’s end, listings declined to their lowest level in over 12 years.
The year ended with just 226* active WWMLS listings, 16% fewer than last year. Throughout the year the Walla Walla Valley maintained approximately 2 months of inventory and ended with just 1.8 months of inventory for the cities of Walla Walla and College Place.
The median sales price experienced an annual gain of 6%.
Lower inventory levels continued to put upward pressure on prices in 2017. The median sales price increased to $227,517*, a 6% increase over the previous year. The Walla Walla Valley experienced a seller’s market, especially for homes below $400,000.
Click here for our 2017 Year-End Charts.
Walla Walla Real Estate 2018 Forecast:
So what will 2018 bring? To help answer that question, here is a summary from Windermere’s Chief Economist, Matthew Gardner:
Existing Home Sales
In 2018 we should expect existing home sales to increase by 3.7%. In many areas, demand will continue to exceed supply, but a modest increase in inventory will help take some heat off the market. Because of this, home prices are likely to rise by 4.4%.
Matthew continues to be concerned about housing affordability. Home prices have been rising across much of the country at unsustainable rates and, although Mathew still contends we are not in “bubble” territory, it does represent a substantial impediment to the long-term health of the housing market. If home price growth begins to taper, as predicted in 2018, that should provide some relief.
Interest rates continue to baffle forecasters. The anticipated rise that many have predicted for several years has yet to materialize. As it stands right now, Matthew’s forecast is for interest rates to rise modestly to an average of 4.4% for a conventional 30-year fixed rate mortgage – still remarkably low when compared to historic averages,
Click here for Matthew’s forecast.
*WWMLS WA Data
With just one month left to report, Walla Walla’s real estate market has been characterized by three main trends. First, the pace of homes sales has been active. 2017 is poised to be the 2nd best market in the last 12 years – just 6% behind last year’s record setting pace. Secondly, listing inventory has remained low. At the end of November, the Walla Walla Valley had 13% fewer homes available for sale than 12 months ago. The cities of Walla Walla and College place reported just 2 months of inventory. And lastly, home prices have increased moderately. The Walla Walla Valley’s median sales price had increased by 5% over last year.
These same trends have happened across the country but for large metropolitan areas they have occurred at more extreme levels. Historically, the the Walla Walla Valley’s real estate market has been more steady than many other communities, which we think that is a good thing. Check back next month for our thoughts on what 2018 will bring.
November’s listings: 274*
November’s listings dropped 8% from the previous month and was 13% below the number of homes listed for sale in November of last year.
November’s closed sales: 63*
Closed sales dropped from the previous month but increased 9% over the number that closed in November of last year.
November’s median price: $238,788*
November’s median price increased 5% over the previous month and was 9% higher than the median price of homes closed in November of last year. Note that Walla Walla’s year-to-date median price for 2017 is $226,160.
Click here for November 2017 Charts!
*WWMLS WA Data
August tied June for the highest number of monthly closings this year in the Walla Walla Valley. Yet, home sale still lagged 9% behind last years pace. Lawrence Yun, NAR chief economist reports that feedback from Realtors continues to confirm that the slowdown in existing sales is the result of a supply problem and not one of diminished demand. This is certainly true for Walla Walla. The number of homes listed for sale at the end of August had dropped 21% below the number listed exactly a year ago. The pace of new listings is not catching up with what’s being sold, especially for homes priced below $400,000.
Lower inventory levels, especially in the lower price ranges, have created a sellers market and pushed prices upward. This year, the median sales price for Walla Walla has increased 5% over last year.
With autumn at the doorstep, we expect buyer demand to remain strong as we head towards winter.
August’s Listings: 303*
Listings declined by 5% from the previous month and 21% below the number of homes listed for sale 12 months ago.
August’s Closings: 81*
Closings increased 16% from the previous month and essentially pulled even with closings in August of last year.
August’s Median Price: $230,000*
The median price declined 2% from the previous month but was 7% higher than August of last year.
Click here for August’s charts.
*WWMLS WA Data
Monthly home sales slowed in the Walla Walla Valley, yet July became the 3rd busiest closing month of the year. Through the first 7 months of the year, Walla Walla’s home sales were 10% behind last years pace. Strong buyer demand has been hampered this year by a low supply of listings. The month ended with 16% fewer active listings than were available 12 months ago.
Due to low listing inventories, Walla Walla has experienced a sellers market and prices have moved upward. Through July, Walla Walla’s median price has risen 5% over the previous year. Yet, price increases have not dampened buyers enthusiasm largely due to interest rates which have remained low.
Lawrence Yun, NAR chief economist says “Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria.” We have found this to be true in Walla Walla, especially for homes priced below $400,000.
July’s Listings: 319*
Although the trend of year-over-year listing declines continue, July experienced a 12% increase in listings over the previous month. This is the highest monthly listing total of the year.
July’s Closings: 68*
Closings declined 16% from the previous month and ended 17% below July’s closings of a year ago.
July’s Median Price: $235,500*
July’s median price dropped 5% from the previous month and was 3% lower than the median price for July of last year. On the year, prices are trending up. Walla Walla’s median sales price has increased 5% over last year.
Click here for July’s charts.
*WWMLS WA Data