There were 7,904 new listings added to the Northwest Multiple Listing Service in March. While that’s down considerably from March 2022, it’s up over 51% from January and February of this year.

“From February to March, key indicators, including new and active listings, pending sales and closed sales are trending upward,” said John Deely, executive vice president of operations for Coldwell Banker Bain. “Despite year-over-year comparisons showing declines, the year-to-date trends indicate the market is moving in a positive direction, towards a healthy market, albeit at a lower velocity than last year.”

Deely added that decreased interest rates have brought previously sidelined buyers back to the market. Closed home sales are down year over year — however, they’re up 36.6% from February.

At the conclusion of the month, just over 8,000 total listings were available in the MLS, which is up 73% year over year and 10.7% month over month. Despite these gains, inventory was only at a 1.38-month supply, which is less than the four- to six month-supply seen in balanced markets. In Pierce, Snohomish and Thurston Counties, inventory supplies fell to lower than one month.

“All signs point toward a rather unusual market through the end of 2023,” said Dick Beeson, managing broker at RE/MAX Northwest in Tacoma/Gig Harbor. “Lowering prices, lowering interest rates and longer days on the market signal some of the unpredictability of the current market.”

Across northwestern Washington, prices were down 7.5% to $590,000, although there was some variation from county to county. Prices increased in eight counties including Clark and Jefferson, while four counties, including Snohomish, saw double-digit price drops.

Realtor.com Chief Economist Danielle Hale says interest rates will continue to dictate the ups and downs of the market throughout homebuying season. “Amid fewer choices on the market and still rising home prices, home shoppers have shown they are very rate-sensitive, only jumping back in the market when rates dip,” she said. “So, what happens with rates this spring will likely play a strong role in determining whether the housing market bumps along or picks up speed this year.”