New Gig Harbor home prices drop in 2009
New home prices for both Gig Harbor and Key Peninsula show a drop from 2008, but inventory is running very low also. At the current pace there is just a seven month supply of new homes. Last year at this time standing inventory stretched out to a 23 month supply.
The Gig Harbor home prices for sold new product have declined significantly since 2008. Gig Harbor’s median sales price is $505,000, with sitting inventory listed at $570,000. The Key Peninsula sales price is $265,000, with current inventory at $253,000.
2009 stats are in—75 new homes sold in 2009–almost identical to 2008’s 72. This represents a 50% decline from 2007 and a huge 77% drop from the average in 2000-2006 of 212 homes each year.
The table below indicates Gig Harbor home price ranges of the 46 homes completed or under construction currently. These 46 homes is a drop of 33% from the 2008 inventory.
|
|
Gig Harbor |
Key Peninsula |
|
Median List Price |
$570,000 |
$247,000 |
|
Average Sq Ft |
3237 |
2533 |
|
|
|
|
|
<$300,000 |
3 |
6 |
|
$400,000-499,999 |
5 |
1 |
|
$500,000-599,999 |
3 |
|
|
$600,000-699,999 |
13 |
|
|
$700,000-799,999 |
6 |
2 |
|
$800,000-899,999 |
3 |
|
|
$900,000-999,999 |
2 |
|
|
>$1,000,000 |
2 |
|
|
|
|
|
The average square footage is still high (although I believe we are seeing a changing trend toward smaller and smarter). The average six years ago was 2543 and eight years ago 2350. Today it is 2533 in Key Peninsula but 3237 in Gig Harbor. The bedroom count is about evenly split between three and four bedrooms.
Last year in February we were struggling through a 23 month supply of new homes, at 2008’s selling pace. This year that is shrunk to seven months.
Other trends to watch—close-in lots are in higher demand, lots are becoming smaller and lots are more expensive to develop. There is standing inventory of about 400 lots in subdivisions in the process of selling but after that there is going to be severe pent-up demand for new homes. The mid point for new homes available in Gig Harbor is the mid $500’s—just a year ago the mid point was over $700,000.
11 of the new homes were sold as “bank-owned” and they currently represent five of the homes for sale.
Carole Holmaas is an Associate Broker at Windermere Real Estate in Gig Harbor, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com. Her blog may be followed at blog.ISellGigHarbor.com.