August Home Sales Hit Four-Month Low in Yakima

The latest from the Yakima real estate market.
As of August, the median home sales price in Yakima has reached $350,000, marking a 3% increase from last year's year-to-date figure of $340,000.

A RECENT DECLINE IN SALES IN THE MARKET

Despite the rise in prices, the local housing market experienced a notable decline in sales activity over the past month.  According to Cory Bemis, owner of Yakima's John L. Scott Reality last month a total of 149 homes were sold in Yakima, a significant 17% decrease from the 180 homes sold in August 2023. Year to date, 1,109 homes have been sold this year, representing a slight 0.4% increase from the 1,105 homes sold during the same period last year.

ARE MORTGAGE RATES GETTING ANY BETTER?

Bemis says the current mortgage landscape may be contributing to these trends. As of August 5, the average interest rate for a 30-year fixed-rate mortgage stands at 6.25%, down from 6.54% just one month prior and significantly lower than the 7.22% recorded a year ago. August's home sales also marked the lowest monthly total in four months, resulting in an absorption rate that has climbed to 3.3 months of housing inventory, the highest level seen in over a year. Interestingly, the inventory of homes for sale has surpassed levels not seen since 2018.

SIGNS OF AN IMPROVING MARKET?

Bemis says though the increase in inventory may pose challenges for sellers, there are signs of an improving market. With lower interest rates stimulating buyer interest, Yakima is witnessing the highest number of pending home sales—174—as seen in over a year.
Bemis says the fall market could prove to be busy, with expectations of more closings, increased buyer activity thanks to favorable interest rates, and a consistent flow of new listings entering the market. Homebuyers and sellers in Yakima are encouraged to remain optimistic as the market shifts gears this autumn.