April’s real estate activity surpassed expectations but it was far from business as usual. The Governor’s “Stay Home, Stay Healthy” order deemed Real Estate an “essential business” due to the importance of housing during these challenging times.  Necessary property viewings were allowed under strict safety protocols and all other real estate activities were conducted remotely through the use of virtual tools.

There was strong buyer traffic during the month.  New listings were often met with multiple offers by buyers looking to capitalize on low-interest rates.  However, seller traffic remained low.  Some sellers delayed listing due to family members staying home and showing safety concerns.  But new tools are helping some sellers move forward.  Virtual tours and open houses along with strict showing guidelines have reduced sellers’ exposure to the public and increased confidence regarding safety.

Some have questioned whether or not the pandemic will negatively impact home values. Here is what we know.  The price of any item is determined by supply as well as the market’s demand for that item.  Thus far the Walla Walla Valley has experienced low listing supply and high buyer demand.   A “seller’s market” continued through April with the median sales price remaining 7% above last year.  And we expect these conditions to continue.  Matthew Gardner, Windermere’s Chief Economist, predicts “prices will remain stable throughout 2020”.

April’s Listings: 212

The month’s listings actually increased by 8% over the previous month but remained 9% below the number of homes listed for sale in April of last year.  Inventory remains at historic lows.

April’s Closings: 45

Closed home sales dropped 26% from the previous month.  Still, year-to-date sales remain 2% ahead of last year’s pace due to the strong market of Q-1.

April’s Median Price: $297,998

The month’s median price remained on par with the previous month.  Year-to-date, the median sales price has increased by 7% over last year.

Click here for the full April charts.

As we report first-quarter real estate activity for the Walla Walla Valley, our state remains under Governor Inslee’s “Stay Home, Stay Healthy” order. And through these challenging times, our highest priority is the safety of our brokers, our clients, and our community.

Although our local economy felt the impact of COVID-19 in late March, real estate got off to a great start in 2020! First-quarter home sales surged 20% ahead of last year’s pace and the median price increased 6% above 2019’s median price. Most buyers were able to take advantage of low-interest rates prior to the volatility experienced in late March.

Enough new listings came on the market during the quarter to replace the ones that sold – leaving the number of active listings at the end of the quarter on par with the number of listings that were available at the beginning of the year.

First Quarter’s Average Listings: 193

The number of homes available for sale during the first quarter of the year averaged 9% less than the number of homes that were available during the first quarter of last year.

First Quarter’s Closed Sales: 155

The number of closed sales during the first quarter increased by 20% over the number of closed sales recorded during the first quarter of last year.

First Quarter’s Median Sales Price: $298,900

The first quarter’s median sales price increased 12% over the median price for the same quarter a year ago (6% higher than 2019’s median price).

How housing will be impacted due to COVID-19 remains to be seen. Understandably, some buyers and sellers are choosing to wait for these challenging times to pass. Others are choosing to cautiously proceed with their plans to buy or sell.

Windermere brokers are committed to safely helping their clients move their lives forward during these challenging times. To do so, we are following Washington State Governor Jay Inslee’s “Stay Home, Stay Healthy” order that allows certain real estate activities to occur under the following restrictions:

• In-person customer meetings are prohibited except where necessary to view a property or sign documents
• No open houses: and
• Property viewings, inspections, and walkthrough must be arranged by appointment and limited to no more than two people on-site at any one time, exercising social distancing at all times.

To minimize personal contact, we strongly encourage using virtual tours, video chat, and other forms of technology to view homes, stay connected to your broker, and conduct business.

Click here for the full first quarter charts.

We continue to work cautiously with buyers and sellers while following our Governors guidelines for delivering essential real estate services.  Our community’s safety is our utmost goal.

Whether you are buying or selling, there are many ways we can continue to work with you and put our virtual tools to work for you. Windermere continues to be All In for you!

VIRTUAL HOME BUYING

VIRTUAL HOME SELLING

Local Resources and Connections

Let’s be All In for supporting local businesses, providing resources for those in need, and keeping our community safe and healthy. The following organizations have compiled links and resources to aid businesses and individuals through the changes caused by the spread of COVID-19.

SHOP LOCAL

Local Curbside, Takeout & Delivery Restaurants Facebook Group – https://www.facebook.com/groups/2805141982933756/

Discover Walla Walla Business Updates – https://discoverwallawalla.net/blog/walla-walla-will

COMMUNITY AID

Walla Walla Mutual Aid Network – https://wallawallahelp.org/

City of Walla Walla Volunteer Registration – https://www.wallawallawa.gov/our-city/volunteer

City of College Place – http://www.cpwa.us/residents/covid-19_resources.php

BUSINESS AND WORKER RESOUCES

Downtown Walla Walla Foundation – https://www.downtownwallawalla.com/

Small Business Administration – https://www.sba.gov/

Oregon Governor – https://govstatus.egov.com/or-covid-19#forEmployers

Washington Governor –https://www.governor.wa.gov/issues/issues/covid-19-resources

EDUCATIONAL SUPPORT

Walla Walla Public Schools – https://www.wwps.org/news/news-events

College Place Public Schools – https://www.cpps.org/o/District/page/covid-19-resources–5

Oregon Department of Education – https://oregonearlylearning.com/COVID-19-Resources/For-Families

Virtual Learning and Entertainment – https://www.cnn.com/style/article/what-to-do-at-home-streaming-art- museums-concerts-coronavirus-trnd/index.html

Despite historically low inventory levels, the Walla Walla Valley’s home sales and pending sales experienced annual increases during the month of February.  Through the first two months of the year, closed home sales were up 18% above last year’s pace and pending sales – homes under contract but not yet closed – increased by 23%.  Low interest rates fueled buyer activity as enough new homes came on the market to replace those that sold – leaving the listing inventory at the same level as the previous month.  However, there were still 8% fewer homes listed for sale than in February of last year.  Thus far in 2020, there have been more buyers than sellers in our market.

At the time of this posting, the coronavirus is creating lots of personal and economic uncertainty.  New listings are arriving daily and buyers are taking advantage of historically low interest rates.  Yet, some buyers have become nervous about the overall economy and some sellers have delayed listing their homes due to these uncertain times.

While it is wise to take the Coronavirus and economic chaos very seriously, may we suggest that this will all pass.  Sooner….or later.  In the meantime, we expect the market to remain tight as our valley and our country works through these challenging times.

February’s Listings: 192*

The month’s listings remained the same as the previous month but were 8% below the number of homes listed for sale in February of last year.

February’s Closed Sales: 40*

Home sales dropped 13% from the previous month but were 14% higher than the number of homes sales in February of last year.  Year-to-date totals are 18% ahead of last year’s pace.

February’s Median Price: $277,500*

February’s median price remained on par with the previous month and was 3% higher than in February of last year.

Click here for monthly charts.

*WWMLS WA Data

Homebuyers got a head start over home sellers in the month of January.  Home sales surged 20% above the number of sales that occurred in January of 2019, but the real story was the continued decline in the number of listings.  For the first time in more than 20 years, the number of homes listed for sale in the Walla Walla MLS dropped below 200 – a 12% decline from the number of homes listed for sale a year ago.  Historically, the 2nd and 3rd quarters are the busiest listing periods in the Walla Walla market, but right now more listings would be a welcome sign for buyers.

The median sales price jumped 17% above the median price for the same period a year ago but favorable interest rates kept buyers active.  And while there are signs that more sellers are preparing their homes for market, January’s low inventory levels indicated that the seller’s market will continue well into 2020.

January’s Listings: 192*

The month’s listings dropped 11% below the previous month and ended 12% below the number of listings at the same time a year ago.

January’s Closed Sales: 53*

The months closed sales declined 2% from the previous month but was 20% above the number that closed in January of last year.

January’s Median Sales Price: $276,000*

The month’s median price increased 6% above the previous month and was 17% above the median price of the previous January.

Click here for the full month report – WW Monthly Charts January 2020

*WWMLS WA Data

Walla Walla Real Estate – 2020 Forecast:

So what will 2020 bring?  To help answer that question, here is a summary from Windermere’s Chief Economist, Matthew Gardner:

US Economy:  Despite some concerning signs, the likelihood that we will enter a recession in 2020 has dropped to about 26%.  If we manage to stage off a recession in 2020, the possibility of a slowdown in 2021 is around 74%.  That said, Gardner fully expects that any drop in growth will be mild and will not negatively affect the U.S. housing market.

Home Sales:  Home prices in the new year will continue to rise as mortgage rates remain very competitive.  Look for prices to increase 3.8% in 2020 as demand continues to exceed supply and more first time home buyers enter the market.

Mortgage Rates:  2020 will be very positive from a home-financing perspective, with the average rate for a 30-year conventional, fixed-rate mortgage averaging under 4%.  That said, if there are significant improvements in trade issues with China, this forecast may change, but not significantly.

Conclusion:  In 2020, affordability issues will persist in many markets around the country.  The market will continue to favor home sellers, but we will start to move more towards balance, resulting in another positive year overall for housing.

2019 finished 4th best for home sales

The Walla Walla MLS (WWMLS) reported 795 closed sales in 2019 making it the 4th most active year ever.  Despite an active 4th quarter, annual home sales ended up just short of the previous year’s numbers.  The record high of 838 closed sales was hit in 2016 followed by 807 sales in 2018, and 799 sales in 2017.  All in all, 2019 was another strong year for real estate in the Walla Walla Valley.

Listing Inventory remained low

2019’s average listing inventory was 1.5% higher than 2018 but remained at historic lows.  The year began and ended with the lowest inventory of the decade. Throughout the year, the market was categorized as a seller’s market, especially for homes under $600,000.  Although inventory remained low, favorable interest rates kept buyers active.

Walla Walla’s median sales price experienced an annual gain of 7%

As reported throughout the year, low inventory levels continued to put upward pressure on price.  The 2019 median sales price was $267,704, a 7% increase over the previous year.

View the FULL STATS FOR DECEMBER AND 2019 HERE

Home sales remained active in November.  With one month left to report, the Walla Walla valley’s 4th quarter’s home sales surged 16% ahead of last year’s 4th quarter and year-to-date home sales have now pulled within 1.5% of last years pace.

Low interest rates and a slight annual increase in listings kept buyers active.  November became the sixth month in a row to experience year-over-year gains in the number of homes available for sale.  There were 6% more homes available for sale than in November of last year.  However, most of Walla Walla’s market continued to be a seller’s market and applied upward pressure on prices.  Year to date, Walla Walla’s median sales price has increased by 7% over the previous year.

The number of pending sales – homes under contract but not yet closed – remained the same as the previous month as new contract signings during November kept pace with the number of homes that closed.  The number of pending sales indicates that year-end activity will remain quite brisk.

November’s Listings: 251*

Monthly listings dropped 12% from the previous month but remained 6% above the number of homes that were listed for sale in November of last year.

November’s Closed Home Sales: 76*

Closings slowed 10% from the previous month but were 17% higher than the number of closed home sales in November of last year.

November’s Median Sales Price: $275,000*

The month’s median price increased slightly over the previous month but was 6% higher than the median sales price for November of last year.

Click here for a FULL REPORT FOR NOVEMBER

*WWMLS WA Data