Market Update Olympia WA Q4 2024

As we approach the end of 2024, it's time to take a closer look at the real estate market in Olympia, WA. Whether you're considering buying, selling, or renting, understanding current market trends is crucial for making informed decisions. Let's dive into the key aspects shaping Olympia's real estate landscape this quarter.

### What Rates Are Doing

Interest rates have been a hot topic throughout 2024. The Federal Reserve has implemented several rate hikes to combat inflation, which has inevitably impacted mortgage rates. Currently, the average mortgage rate hovers around 7%, a significant increase from the historically low rates we saw in the early 2020s. While these higher rates may seem daunting, they are still relatively moderate when viewed in a broader historical context. But just recently they were cut 50 basis points! So if your looking to buy now would be the time you can learn more about this through my other blog here https://www.ryzenrealestate.com/blog/Interest-rates-are-dropping-next-month---

### Home Prices

Olympia's housing market has shown remarkable resilience amid fluctuating economic conditions. As of Q4 2024, home prices have experienced a modest increase of about 3% year-over-year. The median home price in Olympia now stands at approximately $450,000. This steady appreciation reflects the city's growing appeal and robust demand for housing. Here are some cheaper but still nice listings that might provide the perfect mix of a family home and great deal! https://www.ryzenrealestate.com/olyhomescheap

However, it's worth noting that while prices are rising, the rate of growth has slowed compared to previous years. This deceleration offers some relief to prospective buyers who may have felt priced out of the market earlier.

### Is It Smart to Buy/Sell a Home Right Now?

#### Buying

If you're contemplating buying a home in Olympia right now, there are several factors to consider. The higher mortgage rates mean higher monthly payments, which could strain your budget. However, if you have stable finances and plan to stay in your new home for several years, buying could still be a wise investment. The ongoing demand for housing suggests that property values will continue to appreciate over time.

Additionally, fewer bidding wars and slightly longer listing times indicate that buyers may have more negotiating power than they did during the frenzied market peaks of the past few years.

#### Selling

For those looking to sell their homes, Olympia remains an attractive market. While price growth has slowed, home values are still on an upward trajectory. Sellers can capitalize on this by listing their properties at competitive prices without fearing significant depreciation in value.

However, it's essential to set realistic expectations and be prepared for potentially longer selling times compared to the rapid sales cycles seen previously.

### Should You Be Renting?

Renting continues to be a viable option for many residents in Olympia. The rental market remains strong, with vacancy rates hovering around 4%. Average rents have increased by about 2% over the past year, which is relatively modest compared to other cities in Washington State.

Renting can offer flexibility and lower upfront costs compared to buying a home. If you're uncertain about your long-term plans or want to avoid the responsibilities of homeownership amid higher interest rates, renting might be your best bet for now.

### Conclusion

The real estate market in Olympia, WA, presents both opportunities and challenges as we close out 2024. Higher interest rates and steady home price appreciation require careful consideration whether you're buying or selling. Meanwhile, renting remains a practical alternative for those seeking flexibility and lower immediate financial commitments.

Ultimately, your decision should align with your financial situation and long-term goals. Consulting with local real estate experts can provide personalized insights tailored to your needs in this dynamic market environment.