V
ashon Island's real estate market experienced a welcome resurgence in 2024, bucking a two-year decline. A total of 145 homes and condominiums changed hands on the island, representing a 16% increase from 2023 and the highest number since 2021.
Despite lingering high mortgage interest rates – hovering around 7% for most of the year – buyers finally began to take action. Some had grown weary of waiting for interest rates to drop, while others were motivated by a desire to escape rising costs elsewhere. "Buyers were holding out for lower interest rates," said Nicole Donnelly Martin, owner and designated managing broker at Vashon Island Sotheby's International Realty. "It's become clear that this is a long-term situation."
As the median price of homes sold on Vashon reached an all-time high of $847,500, buyers found themselves with more leverage in 2024 than in previous years. Bidding wars became less frequent, and over half of all homes sold in the fourth quarter went for below their list price.
Recent retirees, remote workers, and families with children were among those driving demand on Vashon. The island's schools remain a major draw, while its scenic beauty and relaxed atmosphere continue to attract buyers seeking a tranquil lifestyle.
The market for second homes remained strong, particularly for waterfront properties that can be rented out as short-term vacation rentals. However, some realtors are starting to see an influx of "climate refugees" – individuals fleeing extreme weather conditions in other parts of the country.
As Vashon's population ages, more seniors are deciding to sell their properties due to maintenance challenges, rising property taxes, or a desire to be closer to healthcare and family. Realtors expect sales to continue increasing in 2025, with even a small drop in interest rates potentially prompting more buyers to enter the market.
However, this could lead to increased competition for homes, driving prices even higher. "I think buyers are going to be caught," said Leslie Ferriel, broker and owner at John L. Scott Vashon. With 52 of the 145 homes sold last year fetching over $1 million – including a stunning waterfront mansion that sold for $6.75 million – it's clear that Vashon has become an increasingly exclusive market.
