Carole's Blog

Gig Harbor home prices and sales pause in October

Pending sales volume during October was level with 2012 sales as well as September’s.  The higher tiers have seen fewer contracts and closed sales in the past two months.

The consensus is the federal shutdown during the first two weeks of October, the unknown of the Affordable Health Care law and below-normal inventory has shaken consumer confidence.

Consumer confidence “deteriorated considerably” in October as a result of the shutdown and debt ceiling squabbles, according to The Conference Board. A recent Gallup poll found some improvement in Americans’ economic confidence, but reported it is still well below mid-September, before the shutdown

MLS figures summarizing October’s activity show year-over-year drop in inventory (down 10% in Gig Harbor and 20% in Key Peninsula), nearly 20% increase in the volume of closed sales, and healthy increases in selling prices (up 9.4% in Gig Harbor and 5.9% in Key Peninsula).

Gig Harbor’s median price of $350,000 is 9.4% higher than a year ago – 12.9% lower than September – essentially the same as first half 2005 prices. First half November Gig Harbor home prices are also lower.

• As of Nov 17, $285,000 is the median Gig Harbor home price for closed sales
• Gig Harbor home prices are running at 1^st half 2005 prices
• Key Peninsula’s median price of $216,000 is 5.9% higher than last year & the same as September
• As of Nov 17, $183,000 is the median for closed sales this month
• Prices are running at 2^nd half 2005 prices
• Nationally house prices are expected to increase 4.3% in 2014 and settle around 3.4% after that
• October homes closed at 99% of then current list price. November is seeing a slight tick down from that and slightly longer market time
• Inventory is down 10% for Gig harbor and nearly 20% for Key Peninsula