Carole's Blog

Gig Harbor home prices rise nearly 24%. But the devil is in the details! The median sales price for Gig Harbor and Key Peninsula combined is up nearly 24% year-over-year for 4^th quarter. $393,000 tops the $353,000 from a year ago. I used the full quarter of statistics to equalize any single month’s velocity. And I used the end of the year to most represent the current market.  But details for each area vary widely.

New construction dominates close-in Gig Harbor home prices, including the booming area surrounding Costco as well as Rosedale. Fox Island and Wollochet statistics are heavily weighted from waterfront sales.  And a drop in distressed sales had a major impact for some of Key Peninsula home prices.

Gig Harbor–New home sales captured 41% of all sales, pushing the Gig Harbor home prices in this area up nearly 20% to $464,000. Waterfront sales were down by half, dropping median prices to $400,000 from $836,000 in that category.

Gig Harbor North–1 of every 8 sales was a new home, predominantly in Crescent Lake Estates. That market jumped $561-730,000. Gig Harbor home prices in this area showed an uptick $500-535,000 for 7%. While waterfront prices jumped 35%, less than half the number sold.

Fox Island–Prices jumped 45% $419-609,000 overall, with waterfront prices up 30.9% –$943-1,234,000. There are many view homes on the island, which helped push up the sales price. However, a smaller percentage of the sales was waterfront than a year ago. The few new homes on the island also added to the increase.

Median Home Prices 4th Q 2016 change from 2015

Arletta/Horsehead–21% of all sales were new homes with the median here for Gig Harbor home prices down slightly. 50% more waterfront homes sold this year, but those sales were down in price $935-835,000. There were more waterfront sales, albeit less pricey.

Wollochet/Narrows– 35% more waterfront homes sold, boosting Gig Harbor home prices here $422-800,000, pulling up the entire market $339-465,000 for a healthy 37.2% increase overall.

Rosedale/Kopachuck–The median price dropped here, $527-495,000. 1/3 fewer waterfront homes sold and those prices were down 30% to $583,000. Overall there were just fewer sales.

Wauna/Minter–Wauna and Minter experienced a huge boom in prices –$222-398,000. Double the waterfront sales and 1/3 fewer distressed sales made all the difference for this area with a 79% increase in median price.

North Key Peninsula–Here a reasonable increase $229-244,000. A 20% drop in distressed sales was a boost.

South Key Peninsula–Here a nice comeback $190-231,000 the past year. A few less waterfronts sold but distressed sales dropped 35%, making a major difference in the median price.

Regionally, prices year-over-year 4^th quarter rose 12.9% for Pierce County, 4.3% South Kitsap, and 13.8% for King County.

Gig Harbor, Fox Island, Key Peninsula all experience highest recorded sales prices. Gig Harbor home sales volume is still expanding; prices are still on the upswing and inventory is still down—in Seattle and throughout the Puget Sound. Here’s the evidence.

• October was the best month for sales volume ever recorded
• Days on market are 20 in King County & 32 in Pierce
• Seattle has replaced Portland as the fastest growing market
• King Co prices are up 14.5%, Pierce Co 10% year-over-year
• Seattle is the 9^th most expensive rental market in the nation

So, how’s “our neck of the woods” doing?

Gig Harbor home sales & Fox Island home sales

• MSP (median sales price) increase of 9.6% from a year ago
• Last 2 months of $492,000 MSP, besting 2006 peak of $482,000
• Each of 7 months of this year the MSP topping 2006
• September is 2nd highest recorded MSP; October is 7^th best
• New listings are up 23% for the past 3 months over 2015
• Closed sales have climbed 17% during that time
• Pending sales show modest increase of 6%
• Cumulative days on market have dropped from 92 to 72

Key Peninsula home sales

The KEY has rebounded! That’s the good news for the peninsula that has struggled even as its eastern neighbor began to rebound a couple years ago.

• January to May the MSP was lower than same months of peak 2005-07
• Since June monthly prices have outpaced every previous year
• MSP is up 18% from $220,000 to $260,000 quarterly since 2015
• Closed volume is up nearly 10% for the quarter
• New listings are up over 28% for the quarter