The good news for sellers is there appears to be a few more buyers in the local market, especially in the price ranges of $300-400,000 and $500-600,000. Both of these price categories have seen more written contracts than this time last month. Reasons likely include good financing for buyers with good credit as well as buyers seeing good buys that fit their needs.
Unfortunately closed sales are on track with this same time in July, so don’t expect more than 50 homes to close in August. August is normally one of the top three months for closings. That won’t happen in 2008.
This week I am providing several tables of more specific information than generally addressed in NorthWest Multiple Listing Service news releases.
The first is a “snapshot in time”—the current housing inventory and the closings for July 22 through August 22 by price range. This represents single family homes and condos in Gig Harbor and Fox Island areas only and does not include Key Peninsula. There are 406 homes listed in Gig Harbor above $600,000 with just 11 recent sales. This will continue to be a tough market for sellers as they wait for market conditions to improve.
CURRENT ACTIVE LISTINGS & RECENT SALES
Gig Harbor and Fox Island only
Price range # Listings Sold 7/22-8/22
All prices 859 37
<300,000 101 5
300-399,999 130 9
400-499,999 120 7
500-599,999 102 5
600-699,999 101 3
700-799,999 93 2
800-899,999 56 0
900-999,999 36 1
1-1,499,999 76 5
1,500,000> 44 0
Gig Harbor is experiencing a larger drop in sales numbers than Pierce County as a whole, in part because of the prices of Gig Harbor’s abundant view, waterfront, and golf course homes. While attributing approximately 14% of the county’s inventory, the area is under-performing in the sales category–only slightly more than 8% of the total. The last couple years this area has represented over 8 1/2% of the county’s real estate residential sales. An interesting note is King County is actually experiencing a steeper decline than Pierce—off 43% from a year ago.
The smaller decline in Key Peninsula sales would indicate that affordability and financing are more the culprits than bridge tolls or gas prices.
YEAR-OVER-YEAR CHANGE IN # OF SALES
Gig Harbor ▼50%
Key Peninsula ▼18%
Pierce County ▼29%
King County ▼43%
Gig Harbor and Key Peninsula combined have seen only a $6000 decrease in the median listing price from 2007–$525,000 to $519,000 but a huge reduction in the median sales price, from $414,000 to $355,000. The median is the price with half the number higher and half lower. High end sellers may well be advised to wait to sell until improved market conditions, expected in 2009. Unless priced under the competition, high end sellers should expect to get “beat up” on offering prices…if they even get showings, with a very limited number of buyers looking at a very large inventory homes. This table represents July’s spread between median list and sales prices.
Area Med LP Median SP Spread
Both Peninsulas $519,000 $355,000 32%
Gig Harbor/Fox Is $619,000 $416,000 33%
Key Peninsula $435,000 $289,000 34%
Pierce County $319,000 $260,000 18%
In three areas—around the City, North Rosedale and Fox Island, the eight homes that sold in July experienced shorter than normal market times…an average of 61 days, with a median sales price of $467,000. On average, these eight sellers accepted offers that were 7.5% less than their asking price. Other areas weren’t so lucky and market days dragged on for an average of 140 days, in most cases with one or more price reductions on the way to the sale.
Carole Holmaas is an Associate Broker with Windermere Real Estate, licensed since 1967. This is her real estate blog. She may be reached at Carole@ISellGigHarbor.com or 253.549.6611.