gig harbor waterfrontWaterfront Gig HarborWaterfront Gig Harbor March 19, 2012

Higher prices for Gig Harbor waterfront as 2012 emerges

Higher prices for Gig Harbor waterfront as 2012 emerges

A little good news for Gig Harbor waterfront sellers at the beginning of 2012—median prices are up 10% over 2011’s dismal showing.  Plus sales are definitely up—the first year since 2003 we have closed 13 homes in the first two months.

 

 

 

 

 

 

 

 

 

2011’s 4th quarter strong activity was due to a “perfect storm” of buying conditions…historically low interest rates, a perception the market was bottoming, and “pent-up demand” by sellers to sell.

Homeowners ask me how market conditions have affected the value of their Gig Harbor waterfront home. During the downturn I have tried to provide perspective to this each year. Here are 2011’s statistics, with my comments.

While 2007 was the year the median sales price for Gig Harbor waterfront reached its peak, it was also the year the market started to decline. Prices have dropped 43% overall from 2007 to 2011 and now reside where they were in 2004. Factoring in the first two months of 2012 sales, the Gig Harbor waterfront median price is now down 36% from the pinnacle. The Gig Harbor peninsula actually experienced a slight uptick in prices in 2011 while Key Peninsula dropped.

 

 

 

 

 

 

 

 

Distressed homes

13% of the sales last year were bank-owned homes and 9% short-sales. This was higher than 2010 with only 17% in these two categories. In most cases short sale homes sold just below the county assessed value. But bank-owned waterfront homes sold for 25-45% less than assessed value.

Current inventory is low…low

17% fewer Gig Harbor waterfront homes are on the market compared to a year ago. This slim inventory—coupled with fewer foreclosed waterfront homes, still low interest rates and gradually loosing financing should bring a strong spring selling season and improving prices for sellers in 2012. And March is historically the month more contracts are written than any other.

If you would like more information about Gig Harbor waterfront or have just a question, I would be happy to talk with you. You may email me at Carole@Gig Harbor-Waterfront.com or call me at 253.549.6611.

 

Carole is a Broker at Windermere/Gig Harbor, specializing in Gig Harbor waterfront and view properties. She may be reached at 253.549.6611 or Carole@GigHarbor-Waterfront.com

 

 

 

Gig Harbor Waterfront HomesSalt Waterfront Homes February 13, 2012

Gig Harbor WA Salt Waterfront Home for Sale at Horsehead Bay

Gig Harbor WA Salt Waterfront Home for Sale at Horsehead Bay.  It’s a special place. that first walk down the driveway…the water stretches across the view with Mt Rainier rising in the distance beyond the Fox Island bridge, the purple Black Hills and the Cascade mountain range. Across Hales Passage Fox Island bristles with Doug fir trees. The pastoral beauty of McNeil Island and the sun glinting off the waters of Carr Inlet and Shaw’s Cove are a welcome surprise at this salt waterfront home for sale.

On that first stroll past tall grasses and lavender, to this salt waterfront home for sale where the porch chairs await someone who is in search of beauty, it is easy to say: It takes your breath away. Yes it does…but then another deep breath and you feel the serenity of this special place.

This salt waterfront home for sale is a place to watch the sun rise pink and orange and set reflecting pink and purple. The moon rises…full orange…lighting a silver path across the water. Starry nights are for sitting on the porch and listening to the water lap against the shore or the kayak paddles dipping.

Long summer days are for dinners with friends on one of the terraces of this salt waterfront home for sale.  July 4th is a cacophony of fireworks and pageants ringing the shoreline. This is the time to pick berries…strawberries, blueberries, raspberries…all on the property.

The beach is for discovery and play…wakeboarding, fishing, paddling, wading.

With autumn comes morning fog, setting the house adrift until the sun breaks through. Walks on the sandy beach, wine shared with friends and parties in the great room of this salt waterfront home for sale .

Holidays fill this salt waterfront home for sale  with family and food. Tables expand easily, grandparents and college kids sleep in the detached studio bedroom while little ones play in the house.

Soon spring bulbs appear, rhodies bloom and lavender will fill the south lawn. Deer and fox find their way, eagles patrol the beach, seals follow the kayaks.

Friends arrive by boat, by car, on bike or on foot…to celebrate the seasons and share what this special place offers. Life is as full as you want it to be.

 

Call me at 253.549.6611 or email me Carole@GigHarbor-Waterfront.com for more information about this or another salt waterfront home for sale. Or click on www.PrimeGigHarborWaterfront.com for more photos of this salt waterfront home for sale.

1 Primary

2 View porch

 

 

 

 

 

Rainier edited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The first European-American settlement began in Arletta in the late 1870s and the post office was established in 1893. The first postmistress coined the name Arletta by combining her daughter’s name Arla with her friend’s name Lucetta. Most early settlers farmed. Other activities in the area included logging, fishing, and trapping. When a permanent dock was constructed, a business district developed around the waterfront and included a store, fish fertilizer factory and warehouse. By 1910 the first roads had been constructed between Arletta, Horsehead Bay and Warren.

The first Euro-American settlement in Warren began in the late 1870s.  A permanent dock was constructed in the early 1910s and farming formed the economic base for the community at the beginning. In the late 1920s, local residents constructed a road connecting Warren to Arletta and Horsehead Bay.

8 Great room

 

12 Kitchen

9 Library

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Area residents have consistently demonstrated their strong commitment to provide a high quality public education to nearly 10,000 students. The district enjoys a statewide reputation for meeting the educational needs of today’s students who become tomorrow’s leaders. In addition, Gig Harbor has nearly a dozen private schools.

The Harbor History Museum is located on Gig Harbor Bay and allows visitors a place to experience the history of Gig Harbor. In 2010 the Museum opened its new multi-million dollar facility, highlighted by the Shenandoah, a purse seiner built in a Gig Harbor shipyard and the Midway schoolhouse. The Midway Schoolhouse Experience may be the only all-day pioneer classroom experience on the West Coast. It has been designed with actual curriculum and is the buzz of all 4th graders who are given the option of attending. It is hosted by numerous volunteers and comes complete with “school marm”. The permanent gallery is spectacular and the temporary exhibits are diverse.

While Gig Harbor was once most known for its fishing and logging, it is now also known for its numerous art galleries, art walks and art shows. A theatre company in Gig Harbor provides entertainment including dinner theatre and summer outdoor theatre.

The Gig Harbor area is ideal for enjoying water-related recreation. Whether you prefer water skiing, power or sail boating, kayaking, fresh or salt water fishing, scuba driving, windsurfing, clamming, beachcombing or swimming, the secluded harbors provide excellent moorage and docking facilities.

There are four state parks. Boat ramps are located near the major bays. Gig Harbor operates a waterfront park, a park on Crescent Creek, a boat-building facility and a pioneer farm. Eight golf courses offer year-round golf close to Gig Harbor.

Numerous events are scheduled throughout the year, largely centered on the Gig Harbor waterfront, including farmers markets, outdoor cinema, Tuesday night music at the park, and lighted holiday boat parade.

Youth and adult baseball, basketball, football, gymnastics, dance, and soccer programs are provided through community organizations. Two local pools provide swimming opportunities for the community and swim clubs.

 

Carole Holmaas is a Managing Broker at Windermere Real Estate. She may be reached at 253.549.6611 or Carole@GigHarbor-Waterfront.com

Gig Harbor Waterfront HomesSalt Waterfront Homes February 13, 2012

Gig Harbor WA Salt Waterfront Home for Sale at Horsehead Bay

Gig Harbor WA Salt Waterfront Home for Sale at Horsehead Bay.  It’s a special place. that first walk down the driveway…the water stretches across the view with Mt Rainier rising in the distance beyond the Fox Island bridge, the purple Black Hills and the Cascade mountain range. Across Hales Passage Fox Island bristles with Doug fir trees. The pastoral beauty of McNeil Island and the sun glinting off the waters of Carr Inlet and Shaw’s Cove are a welcome surprise at this salt waterfront home for sale.

On that first stroll past tall grasses and lavender, to this salt waterfront home for sale where the porch chairs await someone who is in search of beauty, it is easy to say: It takes your breath away. Yes it does…but then another deep breath and you feel the serenity of this special place.

This salt waterfront home for sale is a place to watch the sun rise pink and orange and set reflecting pink and purple. The moon rises…full orange…lighting a silver path across the water. Starry nights are for sitting on the porch and listening to the water lap against the shore or the kayak paddles dipping.

Long summer days are for dinners with friends on one of the terraces of this salt waterfront home for sale.  July 4th is a cacophony of fireworks and pageants ringing the shoreline. This is the time to pick berries…strawberries, blueberries, raspberries…all on the property.

The beach is for discovery and play…wakeboarding, fishing, paddling, wading.

With autumn comes morning fog, setting the house adrift until the sun breaks through. Walks on the sandy beach, wine shared with friends and parties in the great room of this salt waterfront home for sale .

Holidays fill this salt waterfront home for sale  with family and food. Tables expand easily, grandparents and college kids sleep in the detached studio bedroom while little ones play in the house.

Soon spring bulbs appear, rhodies bloom and lavender will fill the south lawn. Deer and fox find their way, eagles patrol the beach, seals follow the kayaks.

Friends arrive by boat, by car, on bike or on foot…to celebrate the seasons and share what this special place offers. Life is as full as you want it to be.

 

Call me at 253.549.6611 or email me Carole@GigHarbor-Waterfront.com for more information about this or another salt waterfront home for sale. Or click on www.PrimeGigHarborWaterfront.com for more photos of this salt waterfront home for sale.

1 Primary

2 View porch

 

 

 

 

 

Rainier edited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The first European-American settlement began in Arletta in the late 1870s and the post office was established in 1893. The first postmistress coined the name Arletta by combining her daughter’s name Arla with her friend’s name Lucetta. Most early settlers farmed. Other activities in the area included logging, fishing, and trapping. When a permanent dock was constructed, a business district developed around the waterfront and included a store, fish fertilizer factory and warehouse. By 1910 the first roads had been constructed between Arletta, Horsehead Bay and Warren.

The first Euro-American settlement in Warren began in the late 1870s.  A permanent dock was constructed in the early 1910s and farming formed the economic base for the community at the beginning. In the late 1920s, local residents constructed a road connecting Warren to Arletta and Horsehead Bay.

8 Great room

 

12 Kitchen

9 Library

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Area residents have consistently demonstrated their strong commitment to provide a high quality public education to nearly 10,000 students. The district enjoys a statewide reputation for meeting the educational needs of today’s students who become tomorrow’s leaders. In addition, Gig Harbor has nearly a dozen private schools.

The Harbor History Museum is located on Gig Harbor Bay and allows visitors a place to experience the history of Gig Harbor. In 2010 the Museum opened its new multi-million dollar facility, highlighted by the Shenandoah, a purse seiner built in a Gig Harbor shipyard and the Midway schoolhouse. The Midway Schoolhouse Experience may be the only all-day pioneer classroom experience on the West Coast. It has been designed with actual curriculum and is the buzz of all 4th graders who are given the option of attending. It is hosted by numerous volunteers and comes complete with “school marm”. The permanent gallery is spectacular and the temporary exhibits are diverse.

While Gig Harbor was once most known for its fishing and logging, it is now also known for its numerous art galleries, art walks and art shows. A theatre company in Gig Harbor provides entertainment including dinner theatre and summer outdoor theatre.

The Gig Harbor area is ideal for enjoying water-related recreation. Whether you prefer water skiing, power or sail boating, kayaking, fresh or salt water fishing, scuba driving, windsurfing, clamming, beachcombing or swimming, the secluded harbors provide excellent moorage and docking facilities.

There are four state parks. Boat ramps are located near the major bays. Gig Harbor operates a waterfront park, a park on Crescent Creek, a boat-building facility and a pioneer farm. Eight golf courses offer year-round golf close to Gig Harbor.

Numerous events are scheduled throughout the year, largely centered on the Gig Harbor waterfront, including farmers markets, outdoor cinema, Tuesday night music at the park, and lighted holiday boat parade.

Youth and adult baseball, basketball, football, gymnastics, dance, and soccer programs are provided through community organizations. Two local pools provide swimming opportunities for the community and swim clubs.

 

Carole Holmaas is a Managing Broker at Windermere Real Estate. She may be reached at 253.549.6611 or Carole@GigHarbor-Waterfront.com

Gig Harbor home pricesGig Harbor home sales February 13, 2012

Brakes applied to Gig Harbor home price slide

Brakes applied to Gig Harbor home price slide.

The slide of the last five and a half years for Gig Harbor home prices has slowed in the last couple months while dropping 10% for the year.  Sales for 2011 shows Gig Harbor home prices(including Fox Island) neither bank-owned or short sales in the 4th quarter declined only 3% rather than the 17% drop experienced in third quarter.

  • Inventory is currently down 20% from a year ago and 40% from 2008
  • Median sales price in 4th quarter stood at $352.000 for non-distressed properties and $225,000 for bank-owned or REO (real estate owned).  The REO figure reflects a 19% drop from 4th quarter 2010 Gig Harbor home prices
  • REO sale prices dropped about 15% for the year and non-distressed were down 10%
  • All Gig Harbor home prices are trending  back to 4th quarter 2004 but when removing  distressed sales from the equation prices are similar to 1st quarter 2005 prices
  • Homes are staying on the market fewer days—from 7-8 months in early 2011 to 4 months currently
  • A few more homes and condos sold in 2011 than 2010
  • January Gig Harbor home prices are trending up as well—higher than 6 of the past 12 months

Local 2011 quarterly statistics for Gig Harbor home prices highlight the difference between heavily discounted  bank-owned houses and the “rest of the market”.  REO sales represented 28% of all home sales in the first quarter but only 18-19% the last half of the year. This is expected to increase again as the lenders begin to ratchet up foreclosures after last week’s settlement with the five largest lenders, pertaining to sloppy methodology including robo-signing of documents. REO sales are still expected to maintain a solid presence in the housing market the balance of this year. Nation-wide foreclosures decreased 34% last year over 2010…but are expected to increase 25% in 2012. 

Gig Harbor Median Prices by Quarter

 

 

 

 

 

 

 

 

 

 

Short sales are not separated out in the table above because they actually do not affect the overall median price much. They are spread throughout all prices and tend to settle closer to the non-distressed market price. In fact the fourth quarter saw short sales close higher than non-distressed sales and much higher than the year before. 2011 is the year lenders have become receptive to the process, along with the help of negotiators who specialize in short sales.

The monthly national data shows some stabilization or increases in select markets one month while the next month produces data showing nearly all metropolitan areas are still down. Bright spots in the Puget Sound are the hiring Boeing and its contractors are doing plus overall improvement in employment.

Carole Holmaas is a Managing Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She specializes in waterfront and view properties and may be reached at 253.549.6611 or Carole@ISellGigHarbor.com

Gig Harbor Home Prices February 12, 2012

Brakes applied to Gig Harbor home price slide

Brakes applied to Gig Harbor home price slide

The slide of the last five and a half years for Gig Harbor home prices has slowed in the last couple months while dropping 10% for the year. Sales for 2011 shows Gig Harbor home prices(including Fox Island) neither bank-owned or short sales in the 4th quarter declined only 3% rather than the 17% drop experienced in third quarter.

  • Inventory is currently down 20% from a year ago and 40% from 2008
  • Median sales price in 4th quarter stood at $352.000 for non-distressed properties and $225,000 for bank-owned or REO (real estate owned).  The REO figure reflects a 19% drop from a year ago in Gig Harbor home prices
  • REO sale prices dropped about 15% for the year and non-distressed were down 10%
  • All Gig Harbor home prices are trending  back to 4th quarter 2004 but removing  distressed sales from the equation prices are similar to 1st quarter 2005 prices
  • Homes are staying on the market fewer days—from 7-8 months in early 2011 to 4 months currently
  • A few more homes and condos sold in 2011 than 2010
  • January Gig Harbor home prices are trending up as well—higher than 6 of the past 12 months

Local 2011 quarterly statistics for Gig Harbor home prices highlight the difference between heavily discounted  bank-owned houses and the “rest of the market”.  REO sales represented 28% of all home sales in the first quarter but only 18-19% the last half of the year. That is expected to increase again as the lenders begin to ratchet up foreclosures after last week’s settlement with the five largest lenders, pertaining to sloppy methodology. REO sales are still expected to maintain a solid presence in the housing market the balance of this year. But overall the signs are pointing to fewer foreclosures than 2010.

Gig Harbor Median Prices by Quarter

Short sales are not separated out in the table above because they actually do not affect the overall median price much. They are spread throughout all prices and tend to settle closer to the non-distressed market price. In fact the fourth quarter saw short sales close higher than non-distressed sales and much higher than the year before. 2011 is the year lenders have become receptive to the process, along with the help of negotiators who specialize in short sales.

The monthly national data shows some stabilization or increases in select markets one month while the next month produces data showing nearly all metropolitan areas are still down. Bright spots in the Puget Sound are the hiring Boeing and its contractors are doing plus overall unemployment’s improvement.

Carole Holmaas is a Managing Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She specializes in waterfront and view properties and may be reached at 253.549.6611 or Carole@ISellGigHarbor.com

Gig Harbor Real Estate November 28, 2011

Good news is absent for Gig Harbor home prices

Good news is absent for Gig Harbor home prices. October sales figures gave mixed messages to buyers and sellers of both Gig Harbor and Key Peninsula. It hasn’t been this good to be a home buyer in nearly eight years. On the other hand for homeowners who purchased in the last eight years selling now is a rude awakening. First the encouraging indicators for Gig Harbor home sales…

  • Gig Harbor listing inventory is down 13% from 2010–12 month supply
  • Key Peninsula listing inventory is down 14% from a year ago–8 month supply
  • The time from listing to an acceptable contract is down 20% from 2010
  • Key Peninsula nearly doubled the sales as 2010 in October…Gig Harbor equaled 2010
  • 30 year interest rates were below 4% last week…15 year at 3.3%
  • Terrific values are available in bank-owned homes for  buyers
  • It is a seller’s market (albeit the bank’s) in the $200-250,000 range for Gig Harbor home sales

Smaller inventory, combined with historically low rates is the traditional mix for a market rebound. It isn’t housing itself that is dragging prices down but buyers’ hesitancy with lack of jobs, the stalemate in DC, volatile global economic issues and the stock market. Unfortunately these factors are producing some of the following statistics for Gig Harbor home sales.

  • September-October Gig Harbor & Key Peninsula sales prices were equal to 2003 prices
  • Bank-owned sales are still a drag on the Gig Harbor home sales– 25% of all sales in October
  • 33% of sales in Gig Harbor were distressed but only 12% of homes listed for sale are
  • Gig Harbor median prices are down 13.6% for the last 12 months, some of Puget Sound’s worse
  • Key Peninsula sales prices are down 10% for the last 12 months, equal to Pierce County as a whole
  • Gig Harbor home prices are 40% off their 2006 peak

There’s not much good news for Gig Harbor home sales in these facts. I’ve used the last 12 month average compared the 12 months prior. This tends to even out the monthly highs and lows.

Our South Kitsap neighbors haven’t seen the same price slide—down just 2.9% as a comparison. The market there has been gaining strength all year, but they experienced an even higher rate—43%–of sales from the distressed arena with 25% of active listings either bank-owned or short sale. And King and Thurston counties are down just 8% and 5.25% respectively with Thurston having less than a two month inventory.

It was about a year ago that forecasters warned prices would slip another 10% nationally. No one wanted to believe it. But Gig Harbor is now down about 40% from the peak in summer 2006.

The “supply and demand” theory is working well for bank-owned properties. There was one buyer for every two homes listed in October. This demand contributes to the price depression.   Meanwhile a shorter supply of bank-owned properties could bode well for non-distressed sellers and maybe a settling of prices for a short time. This may change as more foreclosed properties are marketed for sale.

To put perspective on the price declines for ALL sales versus those not distressed I have used second quarter figures which showed a year-over-year decline of 14% for all sales in Gig Harbor. Non-distressed homes showed a 12% decline, short sales a 9% drop and bank-owned 18%. It is easy to see when bank-owned sales represent 25% of the market (in April as high as 42%) it will draw down the overall figures. But even those non-distressed homes suffer because of the competition.

Investors have come back to buy and they buy in the more affordable price ranges, adding to the downward push of median prices for Gig Harbor home sales.

Carole is a Broker at Windermere Real Estate in Gig Harbor, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com.

Gig Harbor home pricesGig Harbor home salesGig Harbor Market ConditionsGig Harbor Real EstateGig Harbor Waterfront HomesSalt Waterfront Homes September 24, 2011

Gig Harbor waterfront sales…what a difference!

Gig Harbor waterfront sales…what a difference!

What a difference 4 months has made for Gig Harbor waterfront sales. In June I reported waterfront prices appeared to have stabilized. I added the caveat “for now”.  Sales were up and closed prices were running higher than 2010 prices. The median price for the first 5 months of 2011 was $686,000.

Then was then. And now is now. Gig Harbor waterfront sales prices have fallen a full $90,000 in the past 4 months and $60,000 from 2010 to $596,000 year-to-date. I blogged in June I was very concerned that closed prices would drop in the future because the pipeline of pending sales was reflecting much lower list prices.  It has!

October waterfront chart

Median price is the point where half the sales closed for more than that price and half closed for less. It is the typical sales price quoted for national and regional statistics. In 2007 half of the sales exceeded $900,000 and half were less. The turn in the waterfront market run-up can be traced to September 2007.  The first quarter of this year was by far the strongest for Gig Harbor waterfront prices…sliding ever since.

Sales volume is up 10% over last year and sellers realistic in pricing for today’s current market are selling in fewer days than in the past.  We are currently on track to close as many,  and possibly more, Gig Harbor waterfront homes as we did in 2006 and 2007.

January-September Gig Harbor waterfront sales highlights

  • Sales volume well ahead of 2008, 2009 and 2010—10% higher than 2010
  • $596,000 closed median price, down 10% from 2010 ($60,000 drop)
  • Closed median price down 33% from 2007 high of $900,000
  • Inventory down about 8% from a year ago
  • Pending median list price $549,000
  • 25% of closed sales are distressed properties—equal bank-owned & short sales
  • 25% of pending sales are also distressed properties

Only 5 Gig Harbor waterfront sales have tipped the scale at more than $1 million since January—4 in the first 5 months and 1 in the next 4 months.  And the inventory is high—44 homes are listed over $1 million…16 of those over $2 million. At that rate of sales there is more than a 6 year supply of homes on the market over $1 million. With these statistics sellers need to price aggressively. It is very clear in today’s market that Gig Harbor waterfront homes selling in the fewest number of days are those that are priced realistically—in many cases sellers are able to get the full list price. 13% of sellers this year received full list price in 3-28 days of listing.

But what a bonanza for Gig Harbor waterfront buyers right now. With interest rates never lower and financing more available for higher-end homes than in 2009 and 2010 this is a great opportunity for buyers who have been contemplating a waterfront purchase. Buyers who can…are buying…as reflected in September’s written contracts. Buyers entered into contracts for 7 Gig Harbor waterfront homes…a figure not seen for September since 2007

Carole Holmaas is a Broker at Windermere Real Estate, licensed since 1967. She specializes in waterfront and view properties and may be reached at 253.549.6611 or carole@ISellGigHarbor.com

Gig Harbor home pricesGig Harbor home salesGig Harbor Market ConditionsGig Harbor Real Estate September 24, 2011

How do Gig Harbor home sales compare?

How do Gig Harbor home sales compare?

Qtr ending Aug 2010 to Aug 2011 Sales Price


Closed home sales figures for august rose nearly 10% over last year in Gig Harbor but that was substantially less than Pierce County which experienced a 35% increase. Key Peninsula’s figures were more in line with the county at nearly 47% increase.

King County experienced a 32.7% increase in sales over last year and Kitsap 32.2%.

The increase in sales volume, coupled with a decline in inventory since last August of 13% in Gig Harbor brought the supply of homes down to the second lowest number for the year–8.4 months. the 16% inventory decline in Key Peninsula brings its supply of homes to 9.7 months–some of the lowest it has seen this year also.  Absorption is figured on the number of homes currently listed selling at the last month’s sales rate.

The good news was short lived however as the median sales price fell once more–down 11% from a year ago–$415,000 to $369,000–in Gig Harbor and down 15% for the quarter over the same period in 2010.

Key Peninsula prices fell even more–29% from last August–$194,000 to $138,000 with a quarterly decline of 20%. All but two months in 2011 have been at 2003 prices.

In comparison, Pierce county’s sales price tumbled 15% from a year ago, while Kitsap and King counties experienced a smaller decline of less than 9%.

 

Carole Holmaas is a Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at 253.549.6611 or carole@ISellGigHarbor.com.

Gig Harbor Real Estate August 15, 2011

Where the good news for Gig Harbor home sales is found

Where the good news for Gig Harbor home sales is found

Gig Harbor home sales are up 47% year-to-year and 5% for the first seven months of the year.

While the median sales price is down 16% from last July to $332,000, it increased 2% in the May to July time period over the previous three months. There appears to be a slow stabilization in prices.

  • Sales price May-Jul over Feb-Apr         ▲2%
  • Sales price  2010 – 2011                                 ▼16%
  • Sales price 2006 – 2011                                 ▼30%

Gig Harbor’s prices peaked May-July 2006 at $478,000, putting prices off 30% from the high. That figure is just slightly less than the Seattle/Tacoma/Everett area index reported by Zillow last week—down 32% from the peak.

Year-over-year prices for the county as a whole experienced only an 11% downturn from 2010. So Gig Harbor home sales are generally the same as the Puget Sound region in the long term but a little worse in the short run.

The short term cause is the high percentage of distressed Gig Harbor home sales in the past six months. July’s distressed closings were 37% of all sales—slightly less than the all-time high of 42% in March and April. Included in these Gig Harbor home sales are homes priced at $800,000 and $1m.

It’s easy to see why prices aren’t picking up steam. Distressed home sales came later to Gig Harbor. Only 19% of the closings in January were distressed and less yet in 2010. While virtually no homes being offered for sale “short” closed during winter, the process has smoothed out and transactions being handled by negotiators often are working their way through the system within a few months.

August closings will be a good indicator of a market not fueled by the 2010 first-time homebuyer tax credit. Transactions had to close by June 2010 for the credit, resulting likely in the strong decrease of closings the following month. Pending sales are up 18% from a year ago and nearly 33% for the last three month period. This bears well for future closings. And inventory is running 12% less than a year ago.

Key Peninsula home prices are showing no sign of stabilizing. Sales are down slightly and prices are off 22.5% from last July. And the May-July quarter registered a huge drop of 16% over the previous three month period.

Key Peninsula’s home prices peaked in February-April 2007 and prices are off 39% from that date—now selling at $156,000.

 

Carole Holmaas is a Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at Carole@ISellGigHarbor.com or 253.549.6611.

Gig Harbor home pricesGig Harbor home salesGig Harbor Market ConditionsGig Harbor Real EstateKey Peninsula home prices July 11, 2011

Gig Harbor home prices great for buyers

Gig Harbor home prices great for buyers!

Gig Harbor home prices are great for today’s buyers but discouraging for sellers. Prices are the same as in late 2003.  Key Peninsula home prices are at equal to second quarter 2003.

The usual culprit dragging sales numbers down is the distressed market. When 29% of all sales in Gig Harbor and 56% of Key Peninsula sales are bank-owned or short sales it pulls the numbers down even though the same non distressed home will sell for more.

The graphs tell the story. In 2010 Gig Harbor home prices had a seven month run of improved prices over the year before, but prices plummeted in October, stayed down throughout the winter, bounced up in April and May but declined severely in June. Gig Harbor home prices are now at their lowest point in the last seven and one half years.

Gig Harbor home prices are down 10.5% for the second quarter from 2010 and down 23.4% from May. The10.5% decline speaks to how bad the market still in because the overall drop from the all-time high in 2006—five years ago–is 25%. Supply of homes, based on sales, has been holding in the 10 month range.

GH Med Sales Price - June 2011

Key Peninsula didn’t fare any better. Responsible for a higher percentage of distressed sales, prices are down 16.4% for the second quarter from 2010 and 15% from May. Between 2006 and 2008 there was more price consistency in the market with some of the highs occurring in each of the three years. But June’s low is down 54% from the all-time high of January 2007.

All of the distressed home sales in Key Peninsula were bank-owned whereas the balance between bank-owned and short sales in Gig Harbor is more equal.

KP Median Sales price-June 2011

 

Closings in July will reflect the first month where a true comparison can be made between current and previous year sales. June 2010 was the last month to close on the loan for first-time buyer credit so last year’s sales were slightly higher in Gig Harbor but the same in Key Peninsula. I would expect the next few months will see sales easily surpassing 2010.

Second quarter news was consistently dismal—oil and food price increases, European defaults, weather, employment, and D.C.’s stalemate over the debt ceiling and deficit reduction. The economy couldn’t get any positive traction and lack of consumer confidence meant buyers were unwilling to buy unless they got a great deal. This is really a “buyer’s market.”

One glimmer of sunshine is that Seattle has seen some strong activity, some multiple offers in certain price ranges, and some price stabilization. As goes Seattle…so goes Gig Harbor, eventually.

 

Carole Holmaas is a Broker at Windermere Real Estate, licensed since 1967. She may be reached at 253.549.6611 or by Carole@ISellGigHarbor.com/