Mixed news for Gig Harbor existing home sales

Mixed news for Gig Harbor existing home sales! As the market has improved and “pent-up” sellers seriously question whether to put their home on the market now—or wait, I want to explore the median price statistics over the past five to six years for Gig Harbor home prices. It is obvious the “over-all” median sales price, used nationally, does not provide sufficient data to answer sellers’ questions.  While new homes have always influenced our prices, so have bank-owned (REO) and short-sale homes (see comment at end). Hopefully this will provide some perspective to Gig Harbor home prices.

I have devised a very visual color graph of how Gig Harbor home prices—new, existing, short sales and REO’s–have changed that I would be happy to share with anyone interested. But way too much information for this black and white media.  While time-consuming, I am developing one for Key Peninsula as well.

Good news for existing “non-distressed” median price

·         Feb  ↑ 11% Y-O-Y

·         2012 4^th Q  ↑ 8.3% Y-O-Y

·         2012 annual  ↑ 2.2% from 2011

·         ↓  14% from  peak in 2007

More good news with leading indicators

·         Volume of closings up 50% Y-O-Y

·         Fewer “decreases” in listing prices

·         More pendings

·         “Balanced” market  w/5-6 mo inventory

Not so good news for short sale and REO properties

·         Comprised  31% of Feb sales

·         Counted for 18% of Jan sales

·         Average only 13% in prior 6 months

·         Median price range $220-250,000

And nationally

·         The Home Expectation Survey has nearly doubled its appreciation forecast  for 2013 to 2.44%

·         The West coast has experienced a 66.7% increase in home sales of over $1 million this past year

·         Distressed sales are down in most parts of the country from 35% to 24% in last year. Projections are for 8% by 2014. Locally we are following that trend.

And my comments

The fact is that today’s sellers still have to compete for buyers with short sale and REO homes. As the distressed inventory continues to fade so will that challenge for Gig Harbor home prices.

Local brokers are having difficulty, in some cases, with appraisals since appraisers must “look back” while today’s buyers are “looking forward.”

There is a vast difference in median sales prices “then and now”.  New homes sold for a 40% premium in the height of our housing boom locally. The current product…different of course…is selling for 80% of existing homes.

Low inventory is moving prices upward and “move-up” sellers could well have an opportunity now, if they are buying in the same market conditions.  Today’s low interest rates provide a solid second reason.