The miles and miles of shoreline Gig Harbor and Key Peninsula are known for are experiencing a steeper sales downturn than the real estate market as a whole. The number of sales is down 49% for the first half of 2008 from 2007, and 62% from 2002, the height of the market. Over-all real estate sales have slid 37% this year.
With 144 waterfront homes on the market and only 19 closed this year, Key Peninsula has bested Gig Harbor, 11 to 8.
2008 is developing into what could be the worst year for saltwater sales in the last 25 of my record-keeping. One has to go back to 1996 to find first half year closings under 20…and that year closed with 48 sales. All higher-end properties fit the same profile… only six closings over $900,000 in June, with an inventory of 151 homes.
The graph shows the comparison of annual and January to June numbers over the last 11 years. Normally by the 4th of July half of the year’s waterfront business has taken place. The best season for sales is March to May, with buyers desiring to be “on the beach” by summertime. It looks like we are on target to sell only 35 to 40 homes for the year.
With both the economy and financing difficulties, sellers in the upper ranges should carefully examine their motivation for selling. It could be advisable to wait to a later date to sell. If there is a compelling reason to sell now, the property should be aggressively priced…meaning well below the market competition. With 144 sellers competing for the just 19 buyers who purchased in the last six months, sellers are facing a six year supply of homes on the market. On the other hand, with that large choice of houses, it is great time for buyers who are able to buy.
The chart indicates areas of listings. In each area the number of waterfront homes currently on the market is shown, as well as the number sold in the last six months, the number of market days, and the median sales price. With a single sale in several areas, too much should not be read into median sales price. It is easy to see the areas where the market is over saturated and those where sales are stronger. Key Peninsula is turning its inventory more quickly with one-third the market days of Gig Harbor. Sales prices are closer to list prices in Key Peninsula, 95% compared to 88%.
Area Active Sold DOM Median Sales Price
South Key Peninsula 16 4 55 $507,000
North Key Peninsula 13 5 47 $450,000
Wauna/Minter 8 2 85 $1,100,000
Fox Island 19 3 133 $1,100,000
Wollochet/Narrows 29 1 47 $1,900,000
Arletta/Horsehead 31 1 308 $1,500,000
Rosedale/Kopachuck 6 2 210 $770,000
Gig Harbor City/surrounds 14 1 135 $1,150,000
Gig Harbor North 8 0 No sales
DOM refers to number of days on the market
Carole Holmaas is an Associate Broker at Windermere Real Estate, licensed since 1967. She may be reached at Carole @ISellGigHarbor.com or 253.549.6611