New home prices for both Gig Harbor and Key Peninsula show a drop from 2008, but inventory is running very low also. At the current pace there is just a seven month supply of new homes. Last year at this time standing inventory stretched out to a 23 month supply.

The Gig Harbor home prices for sold new product have declined significantly since 2008. Gig Harbor’s median sales price is $505,000, with sitting inventory listed at $570,000. The Key Peninsula sales price is $265,000, with current inventory at $253,000. 

2009 stats are in—75 new homes sold in 2009–almost identical to 2008’s 72. This represents a 50% decline from 2007 and a huge 77% drop from the average in 2000-2006 of 212 homes each year.

The table below indicates Gig Harbor home price ranges of the 46 homes completed or under construction currently. These 46 homes is a drop of 33% from the 2008 inventory.

The average square footage is still high (although I believe we are seeing a changing trend toward smaller and smarter). The average six years ago was 2543 and eight years ago 2350.  Today it is 2533 in Key Peninsula but 3237 in Gig Harbor. The bedroom count is about evenly split between three and four bedrooms.

Last year in February we were struggling through a 23 month supply of new homes, at 2008’s selling pace. This year that is shrunk to seven months.

Other trends to watch—close-in lots are in higher demand, lots are becoming smaller and lots are more expensive to develop. There is standing inventory of about 400 lots in subdivisions in the process of selling but after that there is going to be severe pent-up demand for new homes. The mid point for new homes available in Gig Harbor is the mid $500’s—just a year ago the mid point was over $700,000.

11 of the new homes were sold as “bank-owned” and they currently represent five of the homes for sale.

Carole Holmaas is an Associate Broker at Windermere Real Estate in Gig Harbor, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com. Her blog may be followed at blog.ISellGigHarbor.com.

When the News Tribune reported last month the average price for a home in Pierce County had fallen 12% from 2008, following a drop of 9% a year earlier, I decided to compare average Gig Harbor home prices with the county's average.

Normally the median sales price (half the sales above and half below) is used for comparisons locally, as well as nationally. In January I reported that the median was actually up 1% year-over-year for December but down 4% from two years earlier.

Gig Harbor home prices did take a hit when you assess the entire year-dropping 7%-- and an even larger 11% punch from 2007 to 2008. However, even combined, the figures were still better than Pierce County as a whole. The table below compares Gig Harbor zip codes 98332, 98333 and 98335 for closings in December over the last seven years.

The first three quarters of 2008 held up fairly well but, as could be expected, the fourth quarter was the killer. There was a full $100,000 difference in both average and median Gig Harbor home prices, comparing June 2008 to December 2008. This is the reason why December year-over-year is up but 2009 is still down for the entire year

Key Peninsula was off its 2008 average by 16% and off 23% for the combined 2008-09 years--following closely the county trend.

Sellers need to look realistically at the price range buyers are purchasing today.  The graph below clearly illustrates the "disconnect" between what sellers are asking and buyers are buying.  Buyers are closing on homes, on average, today $250,000 less than the list price-this is 38% less than the average list price. In 2002 the spread was only 25%.  Obviously, this does not mean a specific house sold for 38% less than its list price...simply there is a huge spread between Gig Harbor home prices-listing and selling.

These lower average prices are being fueled in part by the "resetting" of real estate values as well as by the huge percentage of first time buyers in today's marketplace, utilizing the tax credit. One possible scenario when the tax credit expires in April is that the number of sales will fall off but the market will neutralize, with less concentration of first-time buyers. Because this particular market segment will drastically be reduced, it could result in an elevation of sales prices-even with fewer buyers.

Carole Holmaas is a licensed Associate Broker, licensed since 1967, at Windermere Real Estate/Gig Harbor. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com. Her blog may be followed at http://Blog.ISellGigHarbor.com

When the News Tribune reported last month the average price for a home in Pierce County had fallen 12% from 2008, following a drop of 9% a year earlier, I decided to compare average Gig Harbor home prices with the county’s average.

Normally the median sales price (half the sales above and half below) is used for comparisons locally, as well as nationally. In January I reported that the median was actually up 1% year-over-year for December but down 4% from two years earlier.

Gig Harbor home prices did take a hit when you assess the entire year—dropping 7%– and an even larger 11% punch from 2007 to 2008. However, even combined, the figures were still better than Pierce County as a whole. The table below compares Gig Harbor zip codes 98332, 98333 and 98335 for closings in December over the last seven years.

The first three quarters of 2008 held up fairly well but, as could be expected, the fourth quarter was the killer. There was a full $100,000 difference in both average and median Gig Harbor home prices, comparing June 2008 to December 2008. This is the reason why December year-over-year is up but 2009 is still down for the entire year

Key Peninsula was off its 2008 average by 16% and off 23% for the combined 2008-09 years–following closely the county trend.

Sellers need to look realistically at the price range buyers are purchasing today.  The graph below clearly illustrates the “disconnect” between what sellers are asking and buyers are buying.  Buyers are closing on homes, on average, today $250,000 less than the list price—this is 38% less than the average list price. In 2002 the spread was only 25%.  Obviously, this does not mean a specific house sold for 38% less than its list price…simply there is a huge spread between Gig Harbor home prices—listing and selling.

These lower average prices are being fueled in part by the “resetting” of real estate values as well as by the huge percentage of first time buyers in today’s marketplace, utilizing the tax credit. One possible scenario when the tax credit expires in April is that the number of sales will fall off but the market will neutralize, with less concentration of first-time buyers. Because this particular market segment will drastically be reduced, it could result in an elevation of sales prices—even with fewer buyers.

Gig Harbor Average Sales Price

Carole Holmaas is a licensed Associate Broker, licensed since 1967, at Windermere Real Estate/Gig Harbor. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com. Her blog may be followed at http://Blog.ISellGigHarbor.com

Key Peninsula home prices are higher one month and lower the next, compared to 2008. While sales prices were lower in December they followed three months of higher prices.

Key Peninsula home prices are down 10% from 2008 and 14% from 2007. That compares to Gig Harbor that bumped up 1% over 2008 and the 4-county Puget Sound area that dropped 7% decrease in prices.

On the other hand, sales of Key Peninsula homes have been showing a tidy increase, with 33% over 2008 and 29% from 2007 year-over-year. The change from 2008 is on a par with Gig Harbor but sales in Gig Harbor are a whopping 160% better than 2007.

 At the same time the 4-county Puget Sound area reported 54.7% more sales than last year so both Gig Harbor and Key Peninsula are some distance behind regional figures for this measure.

Realtors have been pleased with the relatively strong market for December and the momentum appears to be continuing with sales activity in January. Much of those sales are being driven by the first-time home buyer tax credits and low interest rates. Interest rates are starting to tick upward and are expected to peak around 6.5% during 2010.

Inventory continues to drop-down 33% from last year at this time. This is helping stabilize prices as the home supply dwindles. Key Peninsula is currently experiencing just an 8.8 month supply of homes on the market. For the homebuyer, that means if no new homes were listed, it would take about nine months to sell the current inventory. I would expect the supply to drop even more as January sales activity continues to hum.

Carole Holmaas is an Associate Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at 253.549.66 or Carole@ISellGigHarbor.com. Her blog may be followed at http://blog.ISellGigHarbor.com

Gig Harbor home prices are continuing to sustain moderately higher sales prices as 2009 closes out. December is the fifth of the last six months to show improvement year over year. Gig Harbor is defined as the Gig Harbor peninsula and Fox Island.

Gig Harbor home prices are up 1% over 2008, comparing the months of December only. The 4-county Puget Sound area however experienced a 7% decrease in sales price.

Another plus--sales of Gig Harbor homes have been better than 2008 for the last half year now-in each of those six months.    While December sales improved by 7% over November-which is not the norm-they were up dramatically 41% over 2008 and 160% over 2007. The 4-county Puget Sound area reported 54.7% more sales than last year, but Gig Harbor home prices (median sales price) are substantially higher than the Puget Sound, as a whole.

December was a stronger market than Realtors were expecting and there appears to be momentum to keep the market moving. Much of the activity is still being driven by first-time home buyer tax credits as well as favorable interest rates. Unfortunately the substantial volume of foreclosures has driven down prices-a trend likely to persist throughout 2010.

The strongest segment in Gig Harbor home prices the past thirty days has been in the $350-450k range, a segment actually entering  the beginning of a seller's market.

Inventory continues to drop-last month down 8% from November, but down 19% from December 2008. The 4-county Puget Sound area has experienced a nearly identical decrease in inventory.

New homes sales are on the same tract with 11 months of inventory.The table I've supplied for Gig Harbor home prices shows single family homes only.

Carole Holmaas is an Associate Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com. Her blog may be followed at http://blog.ISellGigHarbor.com

Gig Harbor waterfront homes sold at a much faster clip this past year but median sales prices compare remarkably close to 2005-no where near the 2006-2007 peak. 2009's price for Key Peninsula and Gig Harbor waterfront homes was $683,000. This closely parallels the decline in sales of all homes in the area

Sales in 2008 were depressingly slow-only 22-the worst year for sales of Gig Harbor waterfront homes for the nearly three decades I've been recording waterfront market statistics. This year's 51 sales are a 128% improvement but it is still the second worse year of the past 15.

The ups and downs in median prices for Gig Harbor waterfront homes over the past six years:

2004        488,000

2005        680,000           40%▲

2006        850,000           25%▲

2007        900,000           6%  ▲

2008        800,000           11%▼

2009        683,000           15%▼

Prices have held up the best in the areas close to the city where the median price was $953,000.  And prices were nearly as high in Horsehead Bay/Arletta with sales finding a median at $910,000. 

The spread-more than 30%--between the median list and sale prices shows the huge disconnect between the homes currently on the market and the price range buyers are willing to pay to buy waterfront. Four years ago the spread between listings and sales of Gig Harbor waterfront homes was $50-100,000-not $300,000. 

Closed homes experienced only four months, on average, of market time while the current inventory is nearing six months of exposure.

Just nine homes closed for over $1m. The most expensive was a Raft Island home with a deep-water dock. Five were purchased by boaters because of the docks, two will be torn down or substantially rebuilt, and three were purchased for second home use.

I anticipate prices to increase very gradually during 2010. But there are no signs that any part of the real estate market will show any but very minor improvement until 2011, and even then not robust growth. There will be a few more sales made and motivated sellers who prepare and price their home for the current market should see offers as some jumbo money becomes available. Several of these Gig Harbor waterfront homes were purchased with cash and I expect cash to remain king this year as well.

Inventory always builds in the spring and sellers should be aware that traditionally the best months for offers for Gig Harbor waterfront homes are March to June. Sellers who truly want to sell need to get the price right for this selling season.  Buyers will have a wide selection of homes and can expect to buy at prices they haven't seen for several years.

Carole Holmaas is an Associate Broker at Windermere, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com.

Gig Harbor waterfront homes sold at a much faster clip this past year but median sales prices compare remarkably close to 2005—no where near the 2006-2007 peak. 2009’s price for Key Peninsula and Gig Harbor waterfront homes was $683,000. This closely parallels the decline in sales of all homes in the area

Sales in 2008 were depressingly slow—only 22—the worst year for sales of Gig Harbor waterfront homes for the nearly three decades I’ve been recording waterfront market statistics. This year’s 51 sales are a 128% improvement but it is still the second worse year of the past 15.

The ups and downs in median prices for Gig Harbor waterfront homes over the past six years:

2004        488,000

2005        680,000           40%▲

2006        850,000           25%▲

2007        900,000           6%  ▲

2008        800,000           11%▼

2009        683,000           15%▼

Prices have held up the best in the areas close to the city where the median price was $953,000.  And prices were nearly as high in Horsehead Bay/Arletta with sales finding a median at $910,000. 

The spread—more than 30%–between the median list and sale prices shows the huge disconnect between the homes currently on the market and the price range buyers are willing to pay to buy waterfront. Four years ago the spread between listings and sales of Gig Harbor waterfront homes was $50-100,000—not $300,000. 

Closed homes experienced only four months, on average, of market time while the current inventory is nearing six months of exposure.

Just nine homes closed for over $1m. The most expensive was a Raft Island home with a deep-water dock. Five were purchased by boaters because of the docks, two will be torn down or substantially rebuilt, and three were purchased for second home use.

I anticipate prices to increase very gradually during 2010. But there are no signs that any part of the real estate market will show any but very minor improvement until 2011, and even then not robust growth. There will be a few more sales made and motivated sellers who prepare and price their home for the current market should see offers as some jumbo money becomes available. Several of these Gig Harbor waterfront homes were purchased with cash and I expect cash to remain king this year as well.

Inventory always builds in the spring and sellers should be aware that traditionally the best months for offers for Gig Harbor waterfront homes are March to June. Sellers who truly want to sell need to get the price right for this selling season.  Buyers will have a wide selection of homes and can expect to buy at prices they haven’t seen for several years.

Carole Holmaas is an Associate Broker at Windermere, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com.

Gig Harbor home prices are continuing to sustain moderately higher sales prices as 2009 closes out. December is the fifth of the last six months to show improvement year over year. Gig Harbor is defined as the Gig Harbor peninsula and Fox Island.

Gig Harbor home prices are up 1% over 2008, comparing the months of December only. The 4-county Puget Sound area however experienced a 7% decrease in sales price.

Another plus--sales of Gig Harbor homes have been better than 2008 for the last half year now-in each of those six months.    While December sales improved by 7% over November-which is not the norm-they were up dramatically 41% over 2008 and 160% over 2007. The 4-county Puget Sound area reported 54.7% more sales than last year, but Gig Harbor home prices (median sales price) are substantially higher than the Puget Sound, as a whole.

December was a stronger market than Realtors were expecting and there appears to be momentum to keep the market moving. Much of the activity is still being driven by first-time home buyer tax credits as well as favorable interest rates. Unfortunately the substantial volume of foreclosures has driven down prices-a trend likely to persist throughout 2010.

The strongest segment in Gig Harbor home prices the past thirty days has been in the $350-450k range, a segment actually entering  the beginning of a seller's market.

Inventory continues to drop-last month down 8% from November, but down 19% from December 2008. The 4-county Puget Sound area has experienced a nearly identical decrease in inventory.

New homes sales are on the same tract with 11 months of inventory.

The table I've supplied for Gig Harbor home prices shows single family homes only.

Carole Holmaas is an Associate Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com. Her blog may be followed at http://blog.ISellGigHarbor.com

Key Peninsula home prices are higher one month and lower the next, compared to 2008. While sales prices were lower in December they followed three months of higher prices.

Key Peninsula home prices are down 10% from 2008 and 14% from 2007. That compares to Gig Harbor that bumped up 1% over 2008 and the 4-county Puget Sound area that dropped 7% decrease in prices.

On the other hand, sales of Key Peninsula homes have been showing a tidy increase, with 33% over 2008 and 29% from 2007 year-over-year. The change from 2008 is on a par with Gig Harbor but sales in Gig Harbor are a whopping 160% better than 2007.

 At the same time the 4-county Puget Sound area reported 54.7% more sales than last year so both Gig Harbor and Key Peninsula are some distance behind regional figures for this measure.

Realtors have been pleased with the relatively strong market for December and the momentum appears to be continuing with sales activity in January. Much of those sales are being driven by the first-time home buyer tax credits and low interest rates. Interest rates are starting to tick upward and are expected to peak around 6.5% during 2010.

Inventory continues to drop-down 33% from last year at this time. This is helping stabilize prices as the home supply dwindles. Key Peninsula is currently experiencing just an 8.8 month supply of homes on the market. For the homebuyer, that means if no new homes were listed, it would take about nine months to sell the current inventory. I would expect the supply to drop even more as January sales activity continues to hum.

Carole Holmaas is an Associate Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at 253.549.66 or Carole@ISellGigHarbor.com. Her blog may be followed at http://blog.ISellGigHarbor.com

Key Peninsula home prices are higher one month and lower the next, compared to 2008. While sales prices were lower in December they followed three months of higher prices.

Key Peninsula home prices are down 10% from 2008 and 14% from 2007. That compares to Gig Harbor that bumped up 1% over 2008 and the 4-county Puget Sound area that dropped 7% decrease in prices.

On the other hand, sales of Key Peninsula homes have been showing a tidy increase, with 33% over 2008 and 29% from 2007 year-over-year. The change from 2008 is on a par with Gig Harbor but sales in Gig Harbor are a whopping 160% better than 2007.

 At the same time the 4-county Puget Sound area reported 54.7% more sales than last year so both Gig Harbor and Key Peninsula are some distance behind regional figures for this measure.

Realtors have been pleased with the relatively strong market for December and the momentum appears to be continuing with sales activity in January. Much of those sales are being driven by the first-time home buyer tax credits and low interest rates. Interest rates are starting to tick upward and are expected to peak around 6.5% during 2010.

Inventory continues to drop—down 33% from last year at this time. This is helping stabilize prices as the home supply dwindles. Key Peninsula is currently experiencing just an 8.8 month supply of homes on the market. For the homebuyer, that means if no new homes were listed, it would take about nine months to sell the current inventory. I would expect the supply to drop even more as January sales activity continues to hum.

Carole Holmaas is an Associate Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at 253.549.66 or Carole@ISellGigHarbor.com. Her blog may be followed at http://blog.ISellGigHarbor.com