Carole's Blog

Gig Harbor home prices great for buyers!

Gig Harbor home prices are great for today’s buyers but discouraging for sellers. Prices are the same as in late 2003.  Key Peninsula home prices are at equal to second quarter 2003.

The usual culprit dragging sales numbers down is the distressed market. When 29% of all sales in Gig Harbor and 56% of Key Peninsula sales are bank-owned or short sales it pulls the numbers down even though the same non distressed home will sell for more.

The graphs tell the story. In 2010 Gig Harbor home prices had a seven month run of improved prices over the year before, but prices plummeted in October, stayed down throughout the winter, bounced up in April and May but declined severely in June. Gig Harbor home prices are now at their lowest point in the last seven and one half years.

Gig Harbor home prices are down 10.5% for the second quarter from 2010 and down 23.4% from May. The10.5% decline speaks to how bad the market still in because the overall drop from the all-time high in 2006—five years ago–is 25%. Supply of homes, based on sales, has been holding in the 10 month range.

Key Peninsula didn’t fare any better. Responsible for a higher percentage of distressed sales, prices are down 16.4% for the second quarter from 2010 and 15% from May. Between 2006 and 2008 there was more price consistency in the market with some of the highs occurring in each of the three years. But June’s low is down 54% from the all-time high of January 2007.

All of the distressed home sales in Key Peninsula were bank-owned whereas the balance between bank-owned and short sales in Gig Harbor is more equal.

Closings in July will reflect the first month where a true comparison can be made between current and previous year sales. June 2010 was the last month to close on the loan for first-time buyer credit so last year’s sales were slightly higher in Gig Harbor but the same in Key Peninsula. I would expect the next few months will see sales easily surpassing 2010.

Second quarter news was consistently dismal—oil and food price increases, European defaults, weather, employment, and D.C.’s stalemate over the debt ceiling and deficit reduction. The economy couldn’t get any positive traction and lack of consumer confidence meant buyers were unwilling to buy unless they got a great deal. This is really a “buyer’s market.”

One glimmer of sunshine is that Seattle has seen some strong activity, some multiple offers in certain price ranges, and some price stabilization. As goes Seattle…so goes Gig Harbor, eventually.

Carole Holmaas is a Broker at Windermere Real Estate, licensed since 1967. She may be reached at 253.549.6611 or by Carole@ISellGigHarbor.com/

Gig Harbor waterfront home prices stabilize…for now. Sale prices for Gig Harbor waterfront homes at the end of May were on track to beat 2010 prices–$686,000. However, the median list price of pending contracts is only $500,000. Half of these are distressed properties. So it is very likely the median closed price will slide over the next few months.

There is some good news for sellers trying to sell their homes though. Gig Harbor brokers have already closed as many sales in the first five months as the first half of the last three years. The first quarter was particularly strong as interest rates were low and buyers sensed prices were bottoming and made good use of sellers’ willingness to negotiate heavily at the end of winter.

January-May Gig Harbor waterfront home highlights

• Sales volume well ahead of 2008, 2009 and 2010—as much as 50%
• $686,000 median closed price up $25,000 from 2010 prices
• Inventory down 30% from a year ago
• Inventory up 25% in last 75 days
• Pending sales median list price only $500,000

• 37% of closed sales are distressed properties
• 50% of pending sales are distressed properties—1 bank-owned & the rest stuck in the short sale approval process
• Bank-owned homes closed for 81% of the bank’s list price and were on the market an average of 135 days after the bank took over. This drops precipitously to 63% from seller’s original list price
• Short sale homes closed for 67% of original list price and were on the market an average of 415 days
• Non-distressed homes closed for 70% of original list price, only slightly better

Sellers, as they consider pricing, should note the list to sales price ratio for original owners of homes eventually foreclosed on—63%– as well as the 70% for non-distressed closings. There is a difference in being “on the market” and “in the market” and several well-priced homes have sold this year in a matter of days for 95% of list price.

Four Gig Harbor waterfront home sales have tipped the scale at $1 million plus since the first of the year. The homes–two homes on Fox Island and two in Rosedale- sold for 72% of original list price. 2010 produced 17 sales over this mark.  In perspective…there are 50 homes listed over $1 million, including 16 over $2 million. This is a 61% increase in this price range in the past 75 days. It is easy to see many of these homes will be on the market for some time.

To further understand this market segment…there is not one current pending sale above $1 million. At this moment very few buyers are stepping up to these very high-end properties. However, willing and able buyers are receiving some very high quality Gig Harbor waterfront homes…in some cases at or under county assessed values.

Gig Harbor home prices drop to 2004 levels for the first four months of this year. Prices have clearly not stablized. The 15.4% drop from the same time last year is typical of Pierce county as a whole.

The Gig Harbor peninsula and Fox Island make up the data for Gig Harbor home prices.

April showed improvement, posting the highest median sales figure since November. And the lower inventory is pulling down the supply of homes.

Distressed home sales–mostly bank-owned–represent roughly a third or more of all sales currently. This is applying downward pressure on Gig Harbor home prices. this figure is slightly higher than nationally reported data.

Zillow reported last week that house prices are falling at their fastest rate in over three years. Zillow predicts the market will not bottom nationally until 2012…something no Gig Harbor real estate professional will agrue with.

For buyers–it is great time to buy–mortgages are cheap and bank-owned deals are plentiful.

Carole Holmaas is a Broker at Windermere Real Estate, licensed since 1967.

Gig Harbor home prices have clearly not yet stabilized as April data shows prices down 15.4% for the last three-month period from a year ago…but up from March. This $348,000 figure is the highest since November and uses the median sales price (half the sales above and half below).

Overall, Gig Harbor home prices are down 5.7% in the last one year compared to the one year period prior.  The Gig Harbor peninsula and Fox Island are included in data for Gig Harbor home prices.

Sales volume is right in line with last April and year-to-date figures—and the best since 2007.

Inventory is down nearly 20% from a year ago with an 11 months supply of homes on the market. This drop of listings correlates closely with the rest of the Puget Sound. Buyers in select price ranges may want to monitor that closely as a few areas have become seller’s markets.  The $200-250,000 range has only a four month supply and a couple mid to high-end ranges are in a balanced market condition.

Seattle Realtors are reporting they believe the bottom has been reached in that area’s homes priced under $350,000 and with a slimmer supply of good listings some upward pressure is being applied to home prices there. Gig Harbor home prices typically follow suit.

But sales above $800,000 have retrenched deeply in the past couple months as the economy has stumbled with only  one closing in April—for $2.1m—a deal that started as early as January. 

Distressed home sales—mostly bank-owned– represented a slightly smaller part of April’s closings—36% compared to 42% in March.  It is easy to see the downward pressure on Gig Harbor home prices with only 6% of listed homes bank-owned but 31% of all sales bank-owned properties.

Currently the national figure is about 30% of sales. Gig Harbor’s figures have continued to creep up over the past year.  According to the Case-Shiller Index, the Seattle/Bellevue/Everett area has about a 12.9 month supply of distressed homes to purge.  This represents the “shadow inventory” of homes in varying stages of delinquency and foreclosure as well as listed homes.

Carole Holmaas is a Managing Broker at Windermere Real Estate specializing in waterfront and view properties. She has been licensed since 1967. She maybe reached at 253.549.6611 or Carole@ISellGigHarbor.com.

Gig Harbor WA Salt Waterfront Home for Sale. Gig Harbor Bay—75 feet of no-bank sunny Western exposure from this salt waterfront home for sale.

…For the boater—both private small power boat dock and boat launch.   

…For the entertainer—both spacious deck and level brick patio and lawn for games and leisurely dinners.

…For the gardener—all-day sun and spacious yard.

…For the hobbyist—double car garage and third car garage attached to shop.

…For those who just want to enjoy the activity and view of Gig Harbor Bay—2850 square feet salt waterfront  home for sale with three bedrooms— on a generous half acre of backlands plus tidelands rights. All just two blocks to city limits, parks, walking, restaurants and shopping.  

Call me at 253.549.6611 or email me Carole@GigHarbor-Waterfront.com for more information about this or another salt waterfront home for sale. Or click on www.GigHarborBayHome.com for more photos of this salt waterfront home for sale.

Gig Harbor was named during the 1841 Wilkes expedition after a crewmember in a small boat, called the captain’s gig, sighted a harbor and led other boats exploring in the area to take refuge in the harbor during a storm. When the first European-American settlers came to the harbor in 1867 there was a Native American village, with longhouse, located at the head of the harbor near a small creek. In 1867, two Slovenians and a Portuguese rowed a skiff south from British Columbia to fish. They entered Gig Harbor by accident to seek shelter at night. Samuel Jerisich liked the area and decided to stay. He married a fifteen-year-old native woman from near Vancouver Island and settled in Gig Harbor, becoming the first European-American settler in Gig Harbor. Soon Yugoslavians, Germans and Scandinavians followed to settle in the harbor. A major boatyard, lumber mills, salmon fishing fleet and farming provided the early economic base for the town. In 1886, the Indian longhouse served as the first school. Later, the Indian village became the site of Austin mill.

Chicken farming prospered in the 1920s and 1930s. Early fishermen used rowboats to fish. Later, motorized boats allowed fishermen to fish in Alaska and the San Juan Islands starting around 1905.

The town incorporated as a fourth class city in 1946 because of the need to provide for water and sewer systems. Gig Harbor was home to a fishing fleet of more than 70 vessels in the 1970s that decreased to 30 vessels in the later 1980s.

The  Skansie Shipbuilding Company was founded in 1912, producing four-to-five boats per season with 25 to 30 employees. The company built a variety of boats including ferries and wooden fishing boats. One of four Skansie brothers operated the Washington Navigation Company, which operated ferries around the Puget Sound in the 1910s until the 1940s and for the State between the time the first Narrows Bridge collapsed and the second Narrows Bridge was constructed.

Lumber was one of the early industries in the area. The first mill in Gig Harbor started operating in 1887 on the west side of the harbor with two others in the early 1890s and in 1909. Many early settlers engaged in farming, including apples, pears, loganberries, holly and chickens.

Area residents have consistently demonstrated their strong commitment to provide a high quality public education to nearly 10,000 students. The district enjoys a statewide reputation for meeting the educational needs of today’s students who become tomorrow’s leaders. In addition, Gig Harbor has nearly a dozen private schools. 

The Harbor History Museum is located on Gig Harbor Bay and allows visitors a place to experience the history of Gig Harbor. In 2010 the Museum opened its new multi-million dollar facility, highlighted by the Shenandoah, a purse seiner built in a Gig Harbor shipyard and the Midway schoolhouse. The Midway Schoolhouse Experience may be the only all-day pioneer classroom experience on the West Coast. It has been designed with actual curriculum and is the buzz of all 4^th graders who are given the option of attending. It is hosted by numerous volunteers and comes complete with “school marm”. The permanent gallery is spectacular and the temporary exhibits are diverse.

While Gig Harbor was once most known for its fishing and logging, it is now also known for its numerous art galleries, art walks and art shows. A theatre company in Gig Harbor provides entertainment including dinner theatre and summer outdoor theatre.

The Gig Harbor area is ideal for enjoying water-related recreation. Whether you prefer water skiing, power or sail boating, kayaking, fresh or salt water fishing, scuba driving, windsurfing, clamming, beachcombing or swimming, the secluded harbors provide excellent moorage and docking facilities.

There are four state parks. Boat ramps are located near the major bays. Gig Harbor operates a waterfront park, a park on Crescent Creek, a boat-building facility and a pioneer farm. Eight golf courses offer year-round golf close to Gig Harbor.

Numerous events are scheduled throughout the year, largely centered on the Gig Harbor waterfront, including farmers markets, outdoor cinema, Tuesday night music at the park, and lighted holiday boat parade.

Youth and adult baseball, basketball, football, gymnastics, dance, and soccer programs are provided through community organizations. Two local pools provide swimming opportunities for the community and swim clubs.

Carole Holmaas is a Managing Broker at Windermere Real Estate. She may be reached at 253.549.6611 or Carole@GigHarbor-Waterfront.com

Gig Harbor WA Salt Waterfront Home for Sale at Horsehead Bay.  Escape to the quintessential beach house…this salt waterfront home for sale has it all—dock for canoe, kayak and run-about, rope swing into the Bay for the kids, big swing set and sandbox, horseshoes, hammock, waterside patio, partially covered huge deck, outside shower.

But did I mention the salt waterfront home for sale? This charming 1600 square foot contemporary “farmhouse” was built just six years ago with knotty pine floors, vaulted ceilings, 2 story river rock fireplace, stainless appliances, eating bar, corner breakfast nook, covered entry porch, wood windows.

Be ready for this summer’s fun on Horsehead Bay!

Call me at 253.549.6611 or email me Carole@GigHarbor-Waterfront.com for more information about this or another salt waterfront home for sale. Or click on www.GigHarborSaltwaterHome.com for more photos of this salt waterfront home for sale.

The first European-American settlement began in Arletta in the late 1870s and the post office was established in 1893. The first postmistress coined the name Arletta by combining her daughter’s name Arla with her friend’s name Lucetta. Most early settlers farmed. Other activities in the area included logging, fishing, and trapping. When a permanent dock was constructed, a business district developed around the waterfront and included a store, fish fertilizer factory and warehouse. By 1910 the first roads had been constructed between Arletta, Horsehead Bay and Warren.

The first Euro-American settlement in Warren began in the late 1870s.  A permanent dock was constructed in the early 1910s and farming formed the economic base for the community at the beginning. In the late 1920s, local residents constructed a road connecting Warren to Arletta and Horsehead Bay.

Area residents have consistently demonstrated their strong commitment to provide a high quality public education to nearly 10,000 students. The district enjoys a statewide reputation for meeting the educational needs of today’s students who become tomorrow’s leaders. In addition, Gig Harbor has nearly a dozen private schools. 

The Harbor History Museum is located on Gig Harbor Bay and allows visitors a place to experience the history of Gig Harbor. In 2010 the Museum opened its new multi-million dollar facility, highlighted by the Shenandoah, a purse seiner built in a Gig Harbor shipyard and the Midway schoolhouse. The Midway Schoolhouse Experience may be the only all-day pioneer classroom experience on the West Coast. It has been designed with actual curriculum and is the buzz of all 4^th graders who are given the option of attending. It is hosted by numerous volunteers and comes complete with “school marm”. The permanent gallery is spectacular and the temporary exhibits are diverse.

While Gig Harbor was once most known for its fishing and logging, it is now also known for its numerous art galleries, art walks and art shows. A theatre company in Gig Harbor provides entertainment including dinner theatre and summer outdoor theatre.

The Gig Harbor area is ideal for enjoying water-related recreation. Whether you prefer water skiing, power or sail boating, kayaking, fresh or salt water fishing, scuba driving, windsurfing, clamming, beachcombing or swimming, the secluded harbors provide excellent moorage and docking facilities.

There are four state parks. Boat ramps are located near the major bays. Gig Harbor operates a waterfront park, a park on Crescent Creek, a boat-building facility and a pioneer farm. Eight golf courses offer year-round golf close to Gig Harbor.

Numerous events are scheduled throughout the year, largely centered on the Gig Harbor waterfront, including farmers markets, outdoor cinema, Tuesday night music at the park, and lighted holiday boat parade.

Youth and adult baseball, basketball, football, gymnastics, dance, and soccer programs are provided through community organizations. Two local pools provide swimming opportunities for the community and swim clubs.

Carole Holmaas is a Managing Broker at Windermere Real Estate. She may be reached at 253.549.6611 or Carole@GigHarbor-Waterfront.com

(Add link to GHWF)

New Gig Harbor home sales reverse February trend

There are two bright spots in March Gig Harbor home sales but the overall trend reverses the gains made in February. Pendings sales—contracts negotiated but not yet closed—are up nearly 20% from a year ago while inventory is down nearly 23%. The table includes both Gig Harbor and Key Peninsula.

Gig Harbor home sales numbers along with Key Peninsula and their accompanying median prices were all up in February but that picture changed drastically in March.

Pending sales produce the “pipeline” for closed sales. If a high percentage of the pendings close in April and May that will produce more sales than we have experienced since 2007. It wouldn’t take much beat April 2010’s 59 sales with only 51 and 55 the two years prior. One cautionary note is pending numbers for short sale transactions are always a bit dubious. And February “pendings” were also high—23% over the year before. Gig Harbor’s “pendings” was contradicted Pierce County as a whole which was down for March.

 My personal feeling is buyers are reeling from the combination of higher gas prices, the disaster in Japan and the political upheaval in the Middle East. Because interest rates stopped their climb some buyers decided to sit on the sidelines. Additionally March figures for Gig Harbor home sales was pushed upward in 2010 as the federal buyer stimulus was winding down.

With unemployment figures slowing and consumer confidence gaining those buyers will come back into the market, especially as the inventory of available homes continues to decrease. This pool of homes is down 23% from a year ago—the reason appears to be sellers holding out for the market to rid itself of foreclosures. Currently there is a 10 month supply of homes in Key Peninsula and Gig Harbor.

Gig Harbor home sales have been following the national trend where one in three closed sales is a distressed sale. Lately we have been seeing more bank-owned properties than short sales. The bank-owned sales are killing the prices as the lenders constantly drop the listed price to find a buyer.

Carole Holmaas is a Broker at Windermere Real Estate, licensed since 1968. She specializes in waterfront and view properties. She may be reached at 253.549.6611 or at Carole@ISellGigHarbor.com, where you may follow her blog postings.

February brings recovery to Gig Harbor home sales

The short February month brought signs of recovery to Gig Harbor home sales as well as Key Peninsula. While the indicators showed improvement it is too early to tell if a trend is developing. The world economy and political turmoil, as well as unemployment and foreclosures still provide a rocky picture for all of this year.

Gig Harbor home sales numbers along with Key Peninsula and their accompanying median prices were all up, from January as well. This is a particularly good sign for Key Peninsula which has experienced a very stagnant market for over a year.

The last 12 months has seen a 12% drop in prices in Key Peninsula from the previous 12 months while Gig Harbor’s pricing is essentially flat.

The numerous foreclosures and economic instability is perpetuating another trend—price reductions. One in four sellers dropped their price last month—and this has been consistent the past couple years—while they try to find the sweet spot that will entice the buyer to offer.

 One positive trend we have been seeing for a year now—and one that historically produces upward pressure on prices—is fewer sellers in the marketplace. Unfortunately the reason appears to be sellers holding out, when they can, for the market to rid itself of foreclosures.  Inventory is down 21% currently. There is a nine month supply of homes in Key Peninsula and a 14 month inventory in Gig Harbor.

 Carole Holmaas is a Broker at Windermere Real Estate, licensed since 1968. She specializes in waterfront and view properties. She may be reached at 253.549.6611 or at Carole@ISellGigHarbor.com, where you may follow her blog postings.

Gig Harbor homes parallel national distressed market

Distressed sales for Gig Harbor homes totaled 23% of everything sold in January. And for Key Peninsula it hit 70% of all sales. This was a total of 15 properties–all but two were bank-owned.

Figures from the National Association of Realtors® show distressed homes rose nationally to 36% of sales of existing homes in December, up from 33% in November and 32% a year ago. Such homes are typically discounted by 10 to 15 percent, according to NAR research.

Local figures show an increase from 2009 in distressed properties for Gig Harbor homes as well. Gig Harbor is up 6% in the 4^th quarter of 2010 compared to a year before…that is 31% of all homes that closed in the three month period. Key Peninsula was up 17% during that same time to a high of 56% of all closings.

Recently reports indicated the Greater Seattle-Tacoma-Bellevue area’s foreclosure rate jump 23 percent from a year ago, second only to Houston. Regional experts believe that as our economy and unemployment improves, our market will recover more quickly than Florida, California, Arizona, and Nevada, because they have been in a deep trough longer. Snohomish and Pierce counties are currently experiencing the highest rates. And Seattle Metro prices dropped 6% from a year ago in December, which backs up the discounting of house prices due to distressed home sales. I would anticipate the Boeing award for the Air Force fueling tankers will help pull up the local economy up more quickly.

Most foreclosures now are being caused by unemployment and economic displacement, rather than bad loans and overheated values. But many of the 5 year ARM loans taken out in the heat of the 2006 housing bubble are coming due this year. Another record year for foreclosures is forecast which no doubt will drag house values down even further, pushing other homeowners into negative equity territory. It could be another five years to completely purge the housing inventory. Assets are being kept in weak hands longer as this becomes a long tedious market correction.

Distressed properties currently make up 29% of all listings in Key Peninsula and 19% of all listings for Gig Harbor homes. Two-thirds of Key Peninsula distressed homes are already owned by the bank where just 44% of the distressed inventory for Gig Harbor homes has been taken back thus far. However there is a large “shadow inventory” of bank-owned properties not yet on the market. Lenders are obligated to not flood the market.

Largest inventories are currently found in North Key Peninsula at 39%, Fox Island with 34% and Wauna/Minter at 32%.

The largest impact by price range is under $300,000 where 72% of January’s closing was distressed, and where 38% of all homes on the market fit this price range. This makes it very difficult for sellers, not in a distressed situation, in these price ranges to compete for buyers. Realty Trac, nationally foreclosure reporting service just this week noted that foreclosed properties are sometimes selling for a 28% discount over non-banked owned.

Gig Harbor waterfront experienced some strong signals at the end of the year.

 Gig Harbor waterfront sales volume facts:

• Closings 25% better in 2010 than 2009
• December closings 66% better year-over-year
• 4^th qtr 71% better than 4^th qtr 2009
• 15% more homes closed in 2^nd half of 2010 than 1^st half—normally close to 50/50
• Only 21% of sales Key Peninsula homes—normally 33-35%
• January started strong with 7 sales “under contract”–on a par with 2002 (only 2003 & 2004 higher)

Gig Harbor waterfront median sales price facts:

• Up 8% in Gig Harbor (median sales price)–$782,000
• Down 2% in Key Peninsula–$455,000
• 18 Gig Harbor waterfront homes closed over $1m in 2010—double 2009
• Homes selling over $1m bunched in the $1.2m range
• Gig Harbor waterfront prices back to 2004-05 prices
• January sales show 3 over $1m “under contract”

I believe the strong 4^th quarter closings were due, in part, to savvy buyers picking up some incredible Gig Harbor waterfront buys–recognizing the bottom was nearing while interest rates were increasing.

Key Peninsula is not providing its traditional 33% of sales—one big change in the market.  Likely this is due to the Gig Harbor waterfront inventory pegged at prices not seen since 2004-05, allowing buyers to not drive the extra miles for “value”.

A second change for Gig Harbor waterfront is bank-owned homes have become a part of even the local waterfront scene. 17% of all sales last year were bank-owned or short-sales, including three homes priced over $1m as well as five built since 2004.

Gig Harbor waterfront homes took an excess of a year to sell–doubling 2009 figures and reflective of how slow the market has been. Homes originally listed at more than $1.5 took on average nearly 600 days before receiving a contract. Key Peninsula waterfront took a bit less time—315 days.

2010 was a reality check for sellers.  Prices are down 25% from the 2007 peak and 17% from 2008, which was still a good year for sellers. Gig Harbor waterfront homes sold in 2010 for 79% of the original listed price. This figure would actually have been lower, if prior listings were factored in.  Key Peninsula’s selling price to original price was 82%.

2010’s priciest Gig Harbor waterfront sale was a high bank estate in the Horsehead Bay area—for $2,350,000. Three of the other $1m sales came from the same area.

This is “the season” for Gig Harbor waterfront.  Inventory is down but a high percentage of this year’s buyers are already actively looking. March is historically the best month for written contracts, followed by May.

Carole Holmaas is a Broker at Windermere Gig Harbor, licensed since the late 1960’s. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com