Washington housing market sees 13% inventory drop and rising price cuts

"Washington's housing market recorded a 13.3% inventory drop over four weeks while 31.3% of listings saw price reductions, revealing a market where tight supply coexists with persistent pricing pressure. The state's active inventory fell to 9,233 homes for the week ending Jan. 17, down from 10,652 homes on Dec. 20, according to HW Data. The inventory decline outpaced the national market, where active listings decreased 3.1% during the same period."

"Spokane shows the tightest conditions among major metros with just 1.2 months of inventory and only 24.4% of listings reducing prices. The metro's market action index of 48.6 signals the strongest seller's market in the state. Olympia presents a contrasting picture with 37.9% of its 348 active listings taking price cuts, the highest rate among Washington metros. The market maintains 2.2 months of supply with a market action index of 36.9."

"Washington's median list price sits at $599,950, down 4% from $625,000 a year ago. The price decrease rate jumped from 27.9% last January to 31.3% currently, indicating sellers face more negotiation pressure despite tighter inventory. The state maintains 1.8 months of supply, below the national average of 2.4 months. Year-over-year inventory increased 15.2% from 8,019 homes in January 2024, showing the current correction comes from an elevated baseline."

Inventory in Washington declined 13.3% over four weeks to 9,233 active homes for the week ending Jan. 17, down from 10,652 on Dec. 20, versus a 3.1% national decline. Thirty-one point three percent of listings took price reductions, within historical 30–35% norms but above last January’s 27.9%. Statewide months of supply stands at 1.8, below the national 2.4 average, with a median list price of $599,950, down 4% year over year. Seattle-Tacoma-Bellevue has 2,566 listings with 32.3% cuts and 1.4 months supply; Spokane is tightest at 1.2 months and 24.4% cuts; Olympia posts 37.9% reductions and 2.2 months supply. Year-over-year inventory rose 15.2% from 8,019 homes in January 2024.

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