Archive for June, 2011

Jun 11 2011

Gig Harbor waterfront home prices stabilize…for now

Gig Harbor waterfront home prices stabilize…for now. Sale prices for Gig Harbor waterfront homes at the end of May were on track to beat 2010 prices–$686,000. However, the median list price of pending contracts is only $500,000. Half of these are distressed properties. So it is very likely the median closed price will slide over the next few months.

There is some good news for sellers trying to sell their homes though. Gig Harbor brokers have already closed as many sales in the first five months as the first half of the last three years. The first quarter was particularly strong as interest rates were low and buyers sensed prices were bottoming and made good use of sellers’ willingness to negotiate heavily at the end of winter.

January-May Gig Harbor waterfront home highlights

  • Sales volume well ahead of 2008, 2009 and 2010—as much as 50%
  • $686,000 median closed price up $25,000 from 2010 prices
  • Inventory down 30% from a year ago
  • Inventory up 25% in last 75 days
  • Pending sales median list price only $500,000
  • 37% of closed sales are distressed properties
  • 50% of pending sales are distressed properties—1 bank-owned & the rest stuck in the short sale approval process
  • Bank-owned homes closed for 81% of the bank’s list price and were on the market an average of 135 days after the bank took over. This drops precipitously to 63% from seller’s original list price
  • Short sale homes closed for 67% of original list price and were on the market an average of 415 days
  • Non-distressed homes closed for 70% of original list price, only slightly better

Sellers, as they consider pricing, should note the list to sales price ratio for original owners of homes eventually foreclosed on—63%– as well as the 70% for non-distressed closings. There is a difference in being “on the market” and “in the market” and several well-priced homes have sold this year in a matter of days for 95% of list price.

Four Gig Harbor waterfront home sales have tipped the scale at $1 million plus since the first of the year. The homes–two homes on Fox Island and two in Rosedale- sold for 72% of original list price. 2010 produced 17 sales over this mark.  In perspective…there are 50 homes listed over $1 million, including 16 over $2 million. This is a 61% increase in this price range in the past 75 days. It is easy to see many of these homes will be on the market for some time.

To further understand this market segment…there is not one current pending sale above $1 million. At this moment very few buyers are stepping up to these very high-end properties. However, willing and able buyers are receiving some very high quality Gig Harbor waterfront homes…in some cases at or under county assessed values.

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