• 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.

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!

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

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 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 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.

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.

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/

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.

The Gig Harbor peninsula and Fox Island make up the data for Gig Harbor home prices.

April showed improvement, posting the highest median sales figure since November. And the lower inventory is pulling down the supply of homes.

Distressed home sales–mostly bank-owned–represent roughly a third or more of all sales currently. This is applying downward pressure on Gig Harbor home prices. this figure is slightly higher than nationally reported data.

Zillow reported last week that house prices are falling at their fastest rate in over three years. Zillow predicts the market will not bottom nationally until 2012…something no Gig Harbor real estate professional will agrue with.

For buyers–it is great time to buy–mortgages are cheap and bank-owned deals are plentiful.

Carole Holmaas is a Broker at Windermere Real Estate, licensed since 1967.

Overall, Gig Harbor home prices are down 5.7% in the last one year compared to the one year period prior.  The Gig Harbor peninsula and Fox Island are included in data for Gig Harbor home prices.

Sales volume is right in line with last April and year-to-date figures—and the best since 2007.

Inventory is down nearly 20% from a year ago with an 11 months supply of homes on the market. This drop of listings correlates closely with the rest of the Puget Sound. Buyers in select price ranges may want to monitor that closely as a few areas have become seller’s markets.  The $200-250,000 range has only a four month supply and a couple mid to high-end ranges are in a balanced market condition.

Seattle Realtors are reporting they believe the bottom has been reached in that area’s homes priced under $350,000 and with a slimmer supply of good listings some upward pressure is being applied to home prices there. Gig Harbor home prices typically follow suit.

But sales above $800,000 have retrenched deeply in the past couple months as the economy has stumbled with only  one closing in April—for $2.1m—a deal that started as early as January. 

Distressed home sales—mostly bank-owned– represented a slightly smaller part of April’s closings—36% compared to 42% in March.  It is easy to see the downward pressure on Gig Harbor home prices with only 6% of listed homes bank-owned but 31% of all sales bank-owned properties.

Currently the national figure is about 30% of sales. Gig Harbor’s figures have continued to creep up over the past year.  According to the Case-Shiller Index, the Seattle/Bellevue/Everett area has about a 12.9 month supply of distressed homes to purge.  This represents the “shadow inventory” of homes in varying stages of delinquency and foreclosure as well as listed homes.

Carole Holmaas is a Managing Broker at Windermere Real Estate specializing in waterfront and view properties. She has been licensed since 1967. She maybe reached at 253.549.6611 or Carole@ISellGigHarbor.com.

…For the boater—both private small power boat dock and boat launch.   

…For the entertainer—both spacious deck and level brick patio and lawn for games and leisurely dinners.

…For the gardener—all-day sun and spacious yard.

…For the hobbyist—double car garage and third car garage attached to shop.

…For those who just want to enjoy the activity and view of Gig Harbor Bay—2850 square feet salt waterfront  home for sale with three bedrooms– on a generous half acre of backlands plus tidelands rights. All just two blocks to city limits, parks, walking, restaurants and shopping.  

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.GigHarborBayHome.com for more photos of this salt waterfront home for sale.

Gig Harbor was named during the 1841 Wilkes expedition after a crewmember in a small boat, called the captain’s gig, sighted a harbor and led other boats exploring in the area to take refuge in the harbor during a storm. When the first European-American settlers came to the harbor in 1867 there was a Native American village, with longhouse, located at the head of the harbor near a small creek. In 1867, two Slovenians and a Portuguese rowed a skiff south from British Columbia to fish. They entered Gig Harbor by accident to seek shelter at night. Samuel Jerisich liked the area and decided to stay. He married a fifteen-year-old native woman from near Vancouver Island and settled in Gig Harbor, becoming the first European-American settler in Gig Harbor. Soon Yugoslavians, Germans and Scandinavians followed to settle in the harbor. A major boatyard, lumber mills, salmon fishing fleet and farming provided the early economic base for the town. In 1886, the Indian longhouse served as the first school. Later, the Indian village became the site of Austin mill.

Chicken farming prospered in the 1920s and 1930s. Early fishermen used rowboats to fish. Later, motorized boats allowed fishermen to fish in Alaska and the San Juan Islands starting around 1905.

The town incorporated as a fourth class city in 1946 because of the need to provide for water and sewer systems. Gig Harbor was home to a fishing fleet of more than 70 vessels in the 1970s that decreased to 30 vessels in the later 1980s.

The  Skansie Shipbuilding Company was founded in 1912, producing four-to-five boats per season with 25 to 30 employees. The company built a variety of boats including ferries and wooden fishing boats. One of four Skansie brothers operated the Washington Navigation Company, which operated ferries around the Puget Sound in the 1910s until the 1940s and for the State between the time the first Narrows Bridge collapsed and the second Narrows Bridge was constructed.

Lumber was one of the early industries in the area. The first mill in Gig Harbor started operating in 1887 on the west side of the harbor with two others in the early 1890s and in 1909. Many early settlers engaged in farming, including apples, pears, loganberries, holly and chickens.

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 4^th 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

But did I mention the salt waterfront home for sale? This charming 1600 square foot contemporary “farmhouse” was built just six years ago with knotty pine floors, vaulted ceilings, 2 story river rock fireplace, stainless appliances, eating bar, corner breakfast nook, covered entry porch, wood windows.

Be ready for this summer’s fun on Horsehead Bay!

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.GigHarborSaltwaterHome.com for more photos of this salt waterfront home for sale.

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.

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 4^th 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

(Add link to GHWF)