Chelan/Douglas single-family home market shows steadiness amid national decline

The single-family home market in Chelan/Douglas exhibited remarkable consistency in 2023, contrasting with the national trend. While the National Association of Realtors (NAR) reported a 19% decrease in national home sales compared to 2022, the Chelan/Douglas market experienced only a 1% decline. This stability followed a robust $250 million third quarter and comes after a 13% decrease reported in August compared to the previous year.

In the local market, the segment under $750,000 saw a $30 million increase in sales, whereas the above $750,000 segment declined by $40 million. 

The data reveals nuanced dynamics across different price ranges and payment methods:

- Sales under $250,000, both cash and financed, showed modest fluctuations in total deal numbers and amounts.

- The $250,000 to $500,000 bracket, particularly in cash transactions, saw a significant increase in the number of deals and total value.

- In higher price ranges, from $500,000 to over $1 million, varying trends were observed with some categories witnessing decreases in both the number of deals and total value.

Notably, the price per square foot across different price ranges witnessed only minor changes from the fourth quarter of 2022 to the same period in 2023, with a notable spike during the third quarter of 2023. This indicates a relatively stable pricing trend in the local real estate market.

The Wall Street Journal's January 20, 2024, edition suggests potential shifts in the broader financial landscape. An emerging alliance could lead to loosened capital requirement standards for larger banks, potentially lowering interest rates and positively influencing the real estate market. This development aligns with comments highlighting the importance of supporting a vibrant economy and low- to moderate-income communities.

Despite higher interest rates in 2023, the Chelan/Douglas market remained resilient. With national expectations of a rebound in 2024, questions arise about the potential for continued strength in the Chelan/Douglas market, which has yet to show signs of a slowdown.