September home sales appear to be continuing a slight improvement, a trend over the past couple months. Unfortunately, we will have to wait and see if the improvement can muscle its way through the continuing downturn in the economy. If it does, we may be seeing the worse of Gig Harbor’s housing market behind us. But I suspect the small gains the local market has made will be “old news” when we look at sales numbers and especially prices in the fourth quarter.
While the credit crunch is a problem for many businesses and individuals seeking loans other than home loans, there is still plenty of money for employed homebuyers with very good credit and down payment. Unfortunately, many buyers have seen their down payment eroded with recent financial market losses.
September shows a modest improvement from August but is down 36.4% from this time last year in Gig Harbor and Key Peninsula.
Single-Family & Condos Compared to 2007
Sept Y-T-D
Active +4.7%
Pending <6.3%> <29.4%>
Closed <8%> <36.4%>
Market Days +22.9%
Time to market homes improved just a bit—118 days rather than 121 in August.
The graph depicts median sales prices over the past several years for single family and condos for Gig Harbor and Key Peninsulas, combined. Year-to-date median sales prices are down a consistent 6% from both 2007 and 2006. Those years were the high around $370,000, but still up from $320,000 in 2005. It was the end of third quarter 2007 that the subprime mess was disclosed and when sales prices stopped accelerating. Median price is the midway point in number of sales.
One very large discrepancy is the difference in list prices and sales prices—nearly $150,000, or more than $60.00 per square foot. (The average home selling is 2300 currently) This is a reflection of two things: 1) the price range that is selling compared to inventory and 2) the difference in listing and selling prices of many of the sales going together. Intent sellers will look at the per square foot price of homes selling comparable to theirs—not just the comparable listings—and price accordingly.
This next chart shows single family home sales only. Prices are down about 1% in Key Peninsula but 8% in Gig Harbor.
Year-to-date Median Sales Prices
Gig Harbor Key Peninsula
2008 $424,000 $242,500
2007 $457,000 $243,500
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