Salt waterfront home sales for the year are down slightly more than home sales in general—40% compared to 33%.
2008 has turned out to be the slowest sales year for waterfront in at least the last 25 years (this is when I started seriously compiling waterfront statistics). One has to look back to 1996 to find sold numbers even close to this year—still in 1996 there were 48 sales. At the end of the third quarter I said in my blog that it looked like we were on track to finish with 40-45 sales for 2008. And we just barely made that.
With 105 waterfront homes currently on the market and just 41 sales this year, we currently have a 30 month supply of homes at last year’s sales rate. And for a change, Key Peninsula edged out Gig Harbor—22 to 19 sales.
Price is where it was last year. Not so in 2007. Normally Key Peninsula represents one-third of sales. This year the two areas are more equal—the reason–price. The total sales dollar volume is still one-third Key Peninsula, two-thirds Gig Harbor.
|
|
Gig Harbor |
Key Peninsula |
|
2008 Total Sales |
19 |
22 |
|
4th Qtr Sales |
4 |
4 |
|
2007 Total Sales |
48 |
23 |
|
2008 Median Price |
$1 million |
$528,000 |
|
4th Qtr Median Price |
$728,000 |
$825,000 |
|
2007 Median Price |
$970,000 |
$580,000 |
|
2008 Days on Market |
140 |
79 |
|
4th Qtr Days on Market |
143 |
82 |
|
2007 Days on Market |
78 |
164 |
Notable is how far the median price has fallen in just the last three months in Gig Harbor. Yearly 2007 and 2008 prices remain nearly identical, hovering at $1million. But fourth quarter shows a $270,000 drop–the effects of the slower economy and financing requirements. In the first half of 2007, typically, a buyer could get financing with 5% down. Today that figure is 20% or even 30%. Add to that, often 2% higher interest rate for a jumbo loan and we can see what keeps deals from going together.
The median list price of the homes sold in Gig Harbor was $1,200,000, or $200,000 less than the median sales price. Key Peninsula’s over-all median price dropped this year about 10% and the fourth quarter bulge is explained by a single 11,000 square foot home with four acres in Vaughn selling as a short sale for over $1,600,000. In Gig Harbor, one home sold west of Highway 16 fourth quarter for $960,000 after 228 market days.
In the overall market, inventory showed stability in December—8% fewer homes than a year ago were added, a trend experienced throughout the year. Fewer homes on the market now will help stabilize prices, with less selection for buyers.
There are 43 waterfront homes currently listed for more than $1 million. And it is now taking less time to sell Key Peninsula waterfronts than Gig Harbor homes—another first. And again, it’s about price.
The strongest markets where sales demand and current inventory are in equilibrium are Rosedale/Kopachuck, Wauna, and Key Peninsula North. But this can change in a minute as inventory is added to the market.
On a regional basis, Seattle was singled out as a top-ranked real estate investment market to watch, in a report released late October by the Urban Land Institute and PricewaterhouseCoopers LLP. The report cited Seattle’s importance as a Pacific gateway, with “corporate giants” and housing prices that will stay above national averages. The report stressed this was the long-term outlook–that housing demand and prices will continue to slip in the near future.
Locally the two peninsulas beat the four-county Puget Sound region in one respect–pending sales in December. Overall the region experienced a 19% drop in pendings over 2007. The local area actually saw no change from 2007.
Carole Holmaas is an Associate Broker at Windermere Gig Harbor, licensed since 1967. She may be reached at Carole@ISellGigHarbor.com or 253.549.6611.