Summer 2023 – Leavenworth Home Prices
Websites that make money from clicks love to write headlines that shock and grab the reader’s attention.
For the summer of 2023, that headline might read “Leavenworth home sales down 42%!”
Certainly, the number of homes sold in the 3rd quarter is down significantly in 2023 compared to previous summers. In July, August and September only 34 single family homes sold in the Leavenworth zip code. This is the smallest number of sold homes for Leavenworth in the past 10 years. Thankfully it’s not as low as the recession years of 2008-2011.
There are two large factors at play that affect the total number of homes sold. Buyer demand continues to be hampered by steadily increasing mortgage rates. Early in 2023, buyer activity was fairly strong with interest rates hovering between 6 and 6.5%. As the summer moved on, those rates hit 7% and it’s likely that they might even go to 8%.
Some experts theorize that it is not specifically high interest rates that have caused a slowdown. It is the rapid increase in rates that causes buyers to pause. It’s possible that we don’t need a decrease in the rate to increase buyer activity, just some stability. If interest rates stay in a narrow range for a longer period, buyers will adjust to this “new normal.”
The other challenge in the real estate market is a lack of inventory. While there certainly are more homes for sale than during the pandemic, the number of homes for sale in Leavenworth and most parts of the country is actually quite low. We continue to have a surplus of listings above $2 million but in other price ranges supply is limited.
Low demand and low inventory seem to be working in tandem to keep Leavenworth home prices flat. A spike in inventory might lead to prices coming down. Or conversely, a drop in mortgage rates could rekindle buyer motivation and home prices could start to rise again.
Leavenworth Home Prices
The average home price in the summer of 2023 for a single family home was $845,000. This is relatively unchanged from 2022, but down from a high of $945,000 in 2021.
The median sales price ticked down to $726,000 which is down 9% from last year’s record high of $798,000.
Despite the flat or falling prices, home prices remain astronomically higher than they were pre-pandemic in 2019. Homeowners who purchased prior to 2020, likely gained significant equity in recent years.
Required disclaimers:
Information and statistics derived from Northwest Multiple Listing Service. Additionally, this representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.
