Housing Trends for the Walla Walla Valley
Walla Walla’s housing market has made a strong recovery since the outbreak of COVID-19 struck this past spring. Here is a look at 3 key trends we have seen for the year.
Strong Buyer Demand – Historically low interest rates – below 3% – continued to fuel strong buyer demand in the Walla Walla Valley, and rates should remain low for a while. Lawrence Yun, National Association of Realtors’ chief economist, notes “the Fed intends to hold its short-term funds rate near 0% for the foreseeable future, which should, in the absence of inflationary pressure, keep mortgage rates low and aid home buyers continuing to enter the marketplace”.
Low Inventory Levels – The historically low inventory in the Walla Walla Valley doesn’t necessarily mean there haven’t been new listings. Approximately 570 new listings have come on the market so far this year but buyers have snatched them up immediately, leaving inventory at the low level it was when the year started. However, for our market’s momentum to continue, we need more inventory. At month’s end, there were 121 fewer homes listed for sale than were available 12 months ago.
Price Appreciation – Low housing supply coupled with high buyer demand continues to put upward pressure on home prices. At month-end, the year’s median sales price was 10% higher than the previous year. Price increases have been offset by low-interest rates but affordably will become more of an issue should prices continue to rise.
The bottom line, Walla Walla’s real estate market continued to be a bright spot in the economic recovery. Through September, closed home sales had climbed within 1.5% of last years pace
Walla Walla Valley Home Stats for September
Available Listings: 188
Listings declined 2% from the previous month but were significantly lower than a year ago. September’s listings were 39% lower than September 2019.
Closed Sales: 71
The month’s closings increased 6% over the previous month and were 2% higher than the closings that occurred in September of last year.
Median Sales Price: $326,000
The median price jumped 7% over the previous month and was 21% higher than the median price for September of last year. Our year-to-date median price has increased by 10% over the previous year.
Watch weekly economic updates with Matthew Gardner – Windermere Chief Economist
*WWMLS WA Data