Market Update - 2.15.24
Looking Back: 2023
The slowdown of the real estate market in Lake Chelan continued last year with a 33% drop in sales from 2022. As discussed in previous market updates, this slowdown stemmed from an ongoing lack of inventory as well as an increase in borrowing costs. Buyers had fewer options to choose from, especially homes priced less than $500,000. Additionally, what options did exist were all more expensive than previous years in terms of monthly mortgage payments.
The result was a quieter year in terms of transactions and a slight drop in the median home price. (The median sales price dropped from the high 700s to the low 700s).
Looking ahead: 2024
Conditions for 2024 promise some slight shifts over 2023. Inventory will remain low. This looks to be the new normal for Lake Chelan. But the cost of borrowing will likely inch down this year and into 2025.
For Buyers, my recommendation is to do the work to refine your buying goals. Take a few tours locally with your agent to understand the types of homes and areas that pique your interest. Then patiently watch the market. Interest rates will go up and down (and you can refinance), but finding a home that checks your boxes is more challenging in Lake Chelan. Bottom line: do your homework and purchase with focus when you find what you want.
For Sellers, my recommendation is to get your home ready to sell. Buyers do not want to inherit the projects you put off. Spend some money to improve your curb appeal, inside and out. Our team can help you in this arena with a free consultation as well as complementary light staging services during the listing process.
Additionally Sellers, be sure to price your home to sell. Too many sellers err too high in their initial pricing only to see the listing languish. Learn more about our approach to selling at SellChelan.com.
The Data
Closed Residential Sales by Year
The graph below considers the previous 12 months of market activity in each year listed.
Inventory
The inventory data is especially interesting when various slices of the market are considered. The graph below divides the market into the lower quartile (black), the middle half (green), and the upper quartile (red) based on 2023 sales. It then shows the number of homes for sale across time over ten years. Predictably, the graph illustrates the complete loss of the bottom of the market. Even the middle of the market (homes priced from $550K to 1.5M) has half the inventory from pre-COVID.
