South Sound Housing Market Update: Why Demand Is Surging Despite High Days on Market
As we move toward the end of 2024, the South Sound housing market is showing a surprising shift—one that many buyers and sellers didn’t expect this late in the year. Even though days on market (DOM) typically rise during the fall and winter months, several key indicators reveal that demand is actually surging beneath the surface.
Mortgage Purchase Applications Hit Their Highest Level Since February 2023 read further on Yahoo! News
The first major indicator is a sharp spike in mortgage purchase applications—the highest since February 2023. This jump signals that buyers who were sitting on the sidelines for most of the year have suddenly re-entered the market.
Whether that’s due to slightly improved rate expectations, pent-up demand, or consumers adjusting to the “new normal,” the result is the same:
More buyers are actively applying, getting pre-approved, and preparing to write offers.
This is typically not what we see in November, which makes this surge even more notable.
Sales Prices Are Rising Even as DOM Stays Elevated
Median Sales chart highlights an important trend across Pierce, Thurston, and Kitsap Counties—
sales prices continue to climb.
Despite seasonal slowdowns and longer DOM, median prices in the South Sound are holding strong and even pushing upward:
- Pierce: Holding steady around $550,000
- Thurston: Up 2% at $510,000
- Kitsap: Up 6.1% to $567,650
This tells us two clear things:
- Homes are taking longer to sell… but not selling for less.
- Buyers are still willing to pay strong prices for the right home.
In other words, longer DOM is not a sign of a weakening market—it’s simply seasonal.
Pending Sales Surge: Buyers Are Moving Fast
The South Sound 7-day “Market Watch” data shows an even more powerful trend:
- 532 pending sales in just seven days
- 259 new listings
- 400 closings
- Price reductions remain high (272), but cancellations and back-on-market numbers are moderate
This means:
Demand is significantly outpacing new supply.
Even with elevated DOM, buyers are stepping in quickly when a home is priced correctly and presented well.
What This Means for Sellers
This is one of the rare late-year markets where:
- High DOM does not equal a drop in value
- Buyers are ramping up activity instead of slowing down
- Pending sales and mortgage applications both confirm rising demand
Sellers who list now may actually face less competition—and more serious buyers—than those waiting for spring.
What This Means for Buyers
Buyers should expect:
- More competition than usual for November and December
- Fewer high-quality homes hitting the market
- Price stability heading into 2025
If rates improve even slightly, this demand could accelerate quickly—meaning buying now may be more affordable than waiting.
Is This Just a Short-Term Spike—or a Sign of What’s Coming?
While the recent surge in mortgage applications and pending sales could be a short-term reaction to shifting rate expectations, it may also be signaling something bigger. Historically, when buyer demand rises ahead of rate drops—or even the anticipation of rate drops—it often marks the early stages of a broader market rebound.
If this momentum continues into early 2025, we could be looking at:
- A tightening inventory environment as more buyers compete for fewer homes
- Price stability or continued appreciation, even in typically slower months
- A faster-paced spring market where prepared buyers gain a major advantage
On the other hand, if interest rates reverse course or economic confidence weakens, some of this demand could cool temporarily.
For now, the data shows one thing clearly:
Buyers are waking up earlier than usual, and the market is responding.
Whether this is a short-term spike or the first signal of an active 2025 market, staying ahead of these trends will be key for both buyers and sellers.
Bottom Line
Even with high days on market and seasonal slowdowns, the South Sound housing market is showing strong underlying momentum.
Rising mortgage applications, increasing sales prices, and a surge in pending sales all point toward a market that’s far more competitive than the headline numbers suggest.
If you’re planning to buy or sell, the market is moving—and being early instead of late could make all the difference.
Cyrus Bonnet | CEO, Broker, Veteran
Est: 2011
Cyrus@veteransagents.com
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Disclaimer:
The information provided in this blog is for general informational purposes only and should not be construed as legal, financial, or professional advice. Real estate laws and regulations can vary by state and situation. You are strongly encouraged to consult with a qualified attorney, real estate professional, or financial advisor before making any decisions or taking action based on the content of this article.
