Only 335 single family homes (condos are not included) closed escrow the first half of 2008, compared to 537 for the same period in 2007. That is 37.2%, nearly an identical drop whether in Gig Harbor or Key Peninsula. Specifically, there have been 239 sales in Gig Harbor and 112 in Key Peninsula January to June.
June year-over-year closed out the month with a slightly better showing–83 homes sold. This is down 16% from June 2007 and 37% from 2006 but is the best month for home sales since last August. Lack of condo sales would pull the percentage down further. (More on the condo market in a future column.)
Each of the last eight months claims the dubious honor of closing the fewest number of home sales in recent years. June saw price reductions on about one-third, or 351, of the entire home inventory—about typical since January.
The median sales price (half the sales above and half below this price) is down 5% for the year compared to January to June 2007 but up 5% for the single month of June year-over-year. The year-to-date figure is important because it represents six months of trend. Lower median sales prices were evident in four of the last six months over 2007.
Absorption rates are supplied for each peninsula by price range. Absorption is the number of months it takes to sell the entire existing inventory, with no new added, at the same rate as the most recent month’s sales. Overall, the market is running about 14 months, or five months longer than a year ago.
A six month supply is considered a neutral market, a buyer’s or a seller’s market on either side of that number. The under $300,000 range in Gig Harbor is the only one approaching a neutral market.
# MONTHS SUPPLY CURRENTLY ON THE MARKET
Price range Gig Harbor Key Peninsula
<300,000 8 mo 11 mo
$300-399,999 10 mo 13 mo
$400-499,999 18 mo 14 mo
$500-599,999 10 mo
$600-699,999 46 mo 16 mo
$700-799,999 30 mo
$800-899,999 14 mo
$900-999,999 16 mo
$1-1,499,999 24 mo
$1,500,000> 43 mo
If there is no number of months listed, no sales were made in this price range.
With these absorption rates sellers need to carefully weigh the motivation to sell and how best to position themselves aggressively in the marketplace.
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.