Homebuyers in Washington last month saw the largest inventory selection since December 2022, according to the Northwest Multiple Listing Service Monthly Market Update.

There were 9,079 active listings in the MLS at the end of May, up 3.2% year over year. Despite area-wide growth, inventory is still at a 1.44-month supply (well below the four-to-six range seen in a balanced market).

Both pending and closed home sales reached their highest levels in months in May, while the median price in the NWMLS footprint fell 6.8% year over year to $615,000. Despite this, interest rates are putting a damper on market activity, experts said.

J. Lennox Scott, executive officer at John L. Scott Real Estate, said homes in the affordable and mid-priced range “are experiencing an elevated level of Sales Activity Intensity,” a metric that measures the percentage of resale listings that go under contract within the first month on the market.

Despite increasing selection for homebuyers, lower prices and good weather, interest rates are still keeping many shoppers sidelined: The rate for a 30-year fixed mortgage reached 6.79% in the first week of May.

“Mortgage rates jumped this week, as a buoyant economy has prompted the market to price-in the likelihood of another Federal Reserve rate hike,” said Sam Khater, chief economist for Freddie Mac. “Although there has been a steady flow of purchase demand around rates in the low to mid-six percent range, that demand is likely to weaken as rates approach seven percent.”

Homes that do sell are now going for over asking price. The close-to-list price ratio in the NWMLS was 100.9% in May.