What a difference Higher Home Loan Rates make to Real Estate Sales in Vancouver WA!
To be sure, in 2022 there was nothing subtle about the US Federal Reserve's change in policy that caused home loan rates to rapidly more than double. In the Fall of 2021 the rates were in the low 3.0%+- range; while in May of 2023 Freddie Mac says the nation-wide average was about 6.6%!!!
For this report, please note that in May of 2022 (last year) we were starting to see the strong headwinds hitting the sales results for Vancouver Washington. Another way to say it: one year ago was when we were just starting the journey to the "New Normal" for this real estate market.
Our first graphic is a new one for us, and is not a rolling average of 3 or 12 months of results but rather, the simple this month's tally compared to the same month one year ago:
Clearly we are still about one-third lower for the elements related to the number of homes sold: New Listings; Pending; and Sold. Sales Price has been recovering, and for this month it is just slightly below last year's measure.
Next up we see that the rolling average of Pending Sales is increasing because of the more-active season we are in but, still far below what we've seen in the past 5 years:
Clearly the "New Normal" is lower sales activity.
The Rolling Average of Closed Sales also looks considerably different:
Lastly, this next graph shows how Home Sales Prices have been "recovering:"
Thank you for viewing our real estate market report for existing / resale homes in Vancouver WA. If you are looking to Sell or, looking to Buy a Home, please contact is today!
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