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HOME SALE FROM Q-4 2019 TO Q4 2020
- ❱ The final quarter of 2020 was a good one for home sales. Total transactions were up 18.1% compared to the same period a year ago, with a total of 18,216 sales closing.
- ❱ Sales rose in a majority of counties, but five counties saw modest declines. However, these are small markets that can be subject to significant swings.
- ❱ Sales were lower than in the third quarter, but this can be attributed to seasonality and a significant lack of inventory.
- ❱ The housing market continues to impress, and I expect we will see more transactions as we move through 2021. Demand will come from owners who no longer need to live close to their offices as they move away from the more expensive counties to areas where they see more value.
- Skamania County showed a decline of 6.5%. However this is due to a lack of inventory for buyers to choose from.
HOME PRICES
- ❱ The average home price in the region rose a very significant 16.5% year-over-year to $476,051. Home prices were 3.4% higher than in the third quarter of 2020.
- ❱ Skamania County led the market with the strongest annual price growth (43.5% from Q4 2019 to Q4 2020), but this is a very small market prone to significant swings. Prices were lower in Jefferson County but, again, this is a very small market.
- ❱ All but one of the counties contained in this report experienced price growth compared to the final quarter of 2019. All but four counties experienced double-digit appreciation.
- ❱ Home prices are rising at a very significant pace, but mortgage rates are unlikely to drop much further and income growth remains muted. As such, I expect to see price growth start to slow this year.
DAYS ON MARKET
- ❱ The average number of days it took to sell a home in the region dropped 19 days compared to the fourth quarter of 2019. It took 4 fewer days to sell a home compared to the third quarter of 2020.
- ❱ The average time it took to sell a home in the fourth quarter was 57 days. Skamania County to an average of 50 days.
- ❱ All but one county (Benton, +7 days) saw the length of time it took to sell a home drop compared to a year ago.
- ❱ Homes again sold fastest in Washington County, where it took only 21 days to sell.
CONCLUSIONS
This is a reflection on the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. Sales and prices are significantly higher, and demand for housing is very much in place. This favors home sellers who are still in control of the market. I do expect to see listing activity rise this year, which, in concert with modestly rising interest rates, will likely start to take some of the steam out of the market. However, any moderation in the market has yet to appear. Given these factors, the market is in the favor of sellers.
