Carole's Blog

Gig Harbor waterfront high-tier sales make comeback…and other real estate news. Approaching the mid-year point, when typically, one-half of Gig Harbor waterfront sales have closed, the market is on track to end the year with similar volume as last year—115-125 sales. The very high-tier–$2M plus– has already surpassed the last 2 years in numbers. With 3 closed and 2 pending, that’s a 250% increase, in just the first half of the year. It is likely we’ll see a $3M plus Gig Harbor waterfront home sell this year as well.

The $1-1.25M category already has twice as many sales as the whole of 2016.

The conundrum though is between $1.25-$2M. The 2 closed sales to-date compare with 13 for the 2016 year and Gig Harbor waterfront homes currently under contract support the lack of interest, at this time, for this price range.  It may be that many of the sellers with pent-up desire to change homes managed to sell their homes last year. And it may be that this season’s inventory is too aggressively priced.

For the first time I can remember, 40% of the homes on the market over $2M are in Gig Harbor Bay, with docks. These Gig Harbor waterfront homes were built within a five-year period a decade plus ago and likely represent the desire for a lifestyle change.

Gig Harbor/Fox Is overall real estate market….

• Highest single month MSP–$525,000
• Most new resale listings for years—up 6.8%
• 2-month supply of homes for sale
• New homes are 35% of sales volume

Key Peninsula

• Just 1.3-month supply
• MSP up 18% for the quarter
• Pending sales up 53% over 2016

Gig Harbor waterfront prices increase 18% but high-tier not catching up. 2016’s sales neared 2013-14’s record for volume. But the real news is the 18.65% bump in median price for Gig Harbor waterfront homes–the point where half of all sales were more and half less than $700,000.

Sale prices of all Gig Harbor homes have recovered to best the peak years but the very high-tier waterfront prices have not caught up. Today prices are 22% off the 2007 $900,000 peak. 2017 could however minimize that difference for Gig Harbor waterfront.

In 2006-08, 35% of Gig Harbor waterfront sales were over $1M. In 2016, only 21% were over $1M. In 2006, 23 homes sold over $1M. In 2016, 26 homes sold–nearly the same, but twice the overall volume.

The selling price for the 10 homes that sold for $1.5M or more averaged 163% of their assessed value last year, something buyers need to be cognizant of in offering…and 133% in the $800-1M price range. Looking ahead at the 2017 assessed values, I believe prices for Gig Harbor waterfront will continue to outpace county assessments West to Southeast exposure was the norm for the $1.5M price range, and they averaged 154 feet of frontage. One third had docks and nearly all were low to medium-low bank…normal for the high-tier.

Some final thoughts–

• I believe there is a “backlog” of a minimum of 150 Gig Harbor waterfront owners who are ready to move–if market conditions (read prices) permit. This year should bring more of these properties to market.
• New flood plain maps will be implemented March 7, affecting Gig Harbor waterfront low bank. Sellers and buyers should review FEMA’s website for maps to see the impact for flood insurance rates in high-velocity wind and reach situations.
• Additionally, the long-waited Shoreline Master Plan revision is scheduled for adoption this year, expanding shoreline setbacks and restrictions. I was on the committee when it began in 2008…now eight years later. So…lots going on.

Gig Harbor waterfront best sales months are here—sellers should be on the market now! My graph is a big part of this week’s blog. By choice, buyers of low and medium-low bank Gig Harbor waterfront buy in early spring for the ability to enjoy it starting in May or June. We are approaching March—traditionally one of the most active months for sales. Relocation, purchases of “tear-down homes” for rebuilding, and purchases where the primary interest is view, rather than accessibility, provide additional sales throughout the year. Sales made in March for Gig Harbor waterfront will likely close in April or May—45-60 days out.

BEST SALES MONTHS: March has been the #1 selling month in 4 of the last 18 years for Gig Harbor waterfront . March has actually ranked either #1, #2, or #3 40% of that period. Last year March was #2 in new sales. Aggregated over the years, the best months are July, September, May, June and August in that order. Those sales typically close 45 days later. But those months’ sales include more second home usage, Key Peninsula and generally under $1m price tag.

2015 Waterfront roundup

MEDIAN SALES PRICE:  2006-08 were boom years for Gig Harbor waterfront  prices—$800-900,000 was the median. But the year just prior to the boom—2005—the median price was where it has been the past 2 years–$600,000.

TOP TIER: The over $1M category produced 1 of every 4 sales in 2015. At the market height 35% of sales were over $1M. That plummeted to 10%—then jumped to 24% last year. 2 of every 3 sales in the top tier were initiated before June, with half by March. Gig Harbor waterfront buyers want to be using the waterfront—either on land or by boat–in the summertime.

INVENTORY: With Gig Harbor waterfront  inventory even tighter this year, new listings, if priced right, disappear as fast as they are listed.  That should keep prices rising in 2016.   The median price of the 37 homes listed in Gig Harbor/Fox Island is $1,100,000 & in Key Peninsula $745,000 for 8 homes. That 45-house total is down from the past couple years. If, on the other hand, many of the 175 waterfront “pent-up sellers” enter the market, it could hold down prices. 175 is my take of the number of Gig Harbor waterfront sellers who would sell and move—if market conditions & prices permit.

I believe the earliest sellers of Gig Harbor waterfront  to the marketplace this year will get the benefit of low inventory, coupled with historic low interest.

 Gig Harbor waterfront posts healthy price uptick

Gig Harbor waterfront 2014’s sales nearly equaled 2013’s record-breaking year. But the real news is the 18% increase in median sales price for Gig Harbor waterfront. Half of all sales were more than $600,000 and half less. Gig Harbor waterfront sales prices peaked at $900,000 in 2007–now at 2005 levels.

But the sales pattern for Gig Harbor waterfront was atypical—the market slowing precipitously 4th quarter 2013, continuing through the entire 1st half of 2014. By July Gig Harbor waterfront sales were markedly down–both price & number.

Not surprisingly, all 23 $1m plus sales occurred in Gig Harbor & Fox Island. But what was noticeable was the buying intensity 4^th quarter in the upper end. Only 6 Gig Harbor waterfront  offers were accepted in the entire 1st half, 7 in the 3^rd quarter & 9 in the 4^th, mirroring consumer confidence. 10 of those 23 sales closed in November & December alone. $655,000 was the high sales price for Key Peninsula.

What a difference a year made in the over $1m tier for Gig Harbor waterfront. 2013’s record sales volume produced the smallest percentage (10%) of sales over $1m & the lowest median sales price ($490,000) since 2004. But 2014’s nearly equal numbers showed a healthy uptick of 17% high-end sales with 18% increase ($600,000) in median sales price.

The current slim inventory of Gig Harbor waterfront—coupled with historically low interest rates & easier financing should keep prices rising in 2015.  Median list price of the 38 homes in Gig Harbor/Fox Island is a shy $1m & in Key Peninsula $435,000 for the 18 homes listed. On the other hand, if an abundance of “pent-up sellers” list, it could hold down prices. I calculate a minimum of 250 Gig Harbor waterfront owners are ready to move—if market conditions (prices) permit.

Gig Harbor waterfront homes $1m plus sold on average for 150% of assessed value in 2014. Average frontage was 102 feet, considerably down from 170 feet the year before. Only 5 had more than 125 feet. 50% had docks or dock permits & 85% were low to medium-low…nothing unusual here. Homes $750,000-1,000,000 sold on average for 120% of assessed value.

Distressed Gig Harbor waterfront  home sales are becoming nearly a non-issue—just 2% of the sales last year were short-sales and 5% were bank-owned, down 9% & 13% 3 years ago.

Carole is a Broker at Windermere/Gig Harbor, specializing in Gig Harbor waterfront and view properties. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com

July was good, August a little better for South Sound home sales

Here is the report from News Tribune writer about Pierce County home sales. The Gig Harbor and Key Peninsulas didn't fare quite as well for the median sales price uptick year-over-year but do show a solid 5% upgrade for year-to-date figures — just a tad lower than the county as a whole. BY ROLF BOONE Staff writerSeptember 4, 2014 Pierce County single-family residence data for August 2014/2013 -Sales rose 1.55 percent to 1,176 units from 1,158 units. -Median prices rose to $239,950 from $230,000. -Pending sales rose 4.5 percent to 1,454 units from 1,391 units. -Number of single-family residences for sale rose 12.5 percent to 3,967 units from 3,527 units. -New listings in August fell to 1,480 units from 1,505 units. Pierce County condo data for August 2014/2013 -Sales fell 4.3 percent to 88 units from 92 units -Median prices fell 5.3 percent to $154,500 from $163,200. -Pending sales rose to 96 units from 95 units. -Number of condos for sale rose 3.7 percent to 251 units from 242 units. -New condo listings in August rose to 111 units from 93 units. Source: Northwest Multiple Listing Service The South Sound housing market continued its upward trajectory in August, with monthly home sales rising to new highs for the year, according to Northwest Multiple Listing Service data released Thursday. Pierce County home sales rose about 1 percent to 1,264 units in August from 1,250 units in the same month last year, while Thurston County home sales rose more than 3 percent to 373 units from 361 units in the same period, the combined single-family residence and condo data show. The number of homes sold in both counties were highs for the year, the data show. Median prices also rose in both counties, up slightly more than 4 percent in Pierce County to $235,000, while Thurston County rose nearly 2 percent to $239,000. King County's housing market, meanwhile, ran headlong into the realities of not having enough homes for sale. Home sales fell nearly 7 percent in August, while median prices inched up about 1 percent. The challenge? King County has only a two month's supply of homes for sale, the combined data show. And that's increasingly the challenge in Pierce and Thurston counties. Although the number of homes for sale rose nearly 12 percent in Pierce County and 5 percent in Thurston County, that still equates to less than a four month's supply of homes on the market at the current pace of sales. For August, the months of inventory was 3.34 months in Pierce County and 3.83 months in Thurston County, the combined data show. But Mike Larson, president and designated broker of Allen Realtors in Lakewood, wasn't too concerned about the lower inventory level in Pierce County because at one time a two-and-a-half month to three-and-a-half month's supply of homes was once considered the norm. "It's slow and steady and trending in the right direction," he said about the market. "Balanced and moderate is a lot better than the ups and downs we saw for years." But Steve Pust, a managing broker at Van Dorm Realty in west Olympia, has noticed the lower inventory level in Thurston County, saying buyers in the market are having trouble finding a home, he said. That has resulted in some multiple offer situations, Pust said. Low levels of inventory typically pushes median prices higher, but the county still has about 60 bank-owned home sales a month, and not every buyer can qualify to purchase such a property, he said. In that situation, banks get very particular about the type of buyer they want, shutting out contingency buyers — those selling a home while trying to buy another at the same time — or requiring that their financing be in order, Pust said. If inventories get leaner, sellers will drive median prices higher, he said.

Gig Harbor waterfront prices up 10%

Gig Harbor waterfront prices up 10%, January to mid-May, over the 2013 year. The entire price bump is coming from Gig Harbor and Fox Island—up 14% while Key Peninsula is experiencing a 7% decrease. Here are the highlights…

Sales volume for Gig harbor waterfront

• On track for 100 sales by year-end—fairly typical
• Slower thus far than 2013’s all-time high of 135
• Sweet spot is $500-600,000, 4 closed/2 active listings
• Also $400-500,000, 8 closed/14 listings
• Also $900,000, 4 closed/8 listings

Median sales prices y-t-d for Gig Harbor waterfront

• Prices ↑ 10% on both peninsulas over 2013 year–$550,000
• Prices still ↓ 38% from 2007 peak
• $1m+ represents 30% of listings—but just 11% of sales
• $1m+ average 2 years on market before sale
• Under $1m—average under 6 months on the market
• Gig Harbor/Fox Island ↑ 14% over 2013–$713,000
• Gig Harbor highest sale $2,960,000 after 6 ½ years
• Key Peninsula ↓ 7%–$ 395,000
• Key Peninsula highest sale $600,000 this year

Proposed Gig Harbor waterfront changes muddy the waters

The proposed all-new Shoreline Master Plan for Gig Harbor waterfront, mandated by the State, is proceeding cautiously—with local  hearings postponed by the Pierce County Council. The Council has chosen to push back against the State Department of Ecology on issues including buffers and aquaculture, but with the threat the State will impose more onerous regulations on shoreline properties if the Council can’t agree. The current 50 foot “setback” is proposed to change to a 75-150 foot “vegetative buffer.” And structural expansion into the “buffer” would be limited to 25% of the existing footprint, in most cases.

Every Gig Harbor waterfront owner should pay close attention to the current process and seek professional assistance, “sooner than later” if there is any thought of expanding, building or selling in the future.

Gig Harbor waterfront 2013’s sales volume was up 33% year-over-year.  April through October posted nearly identical volume each month—14 or 15 homes closing each month.  And the number of sales every month was the highest for Gig Harbor waterfront it had been for at least a decade.

The strong activity for Gig Harbor waterfront was due to a nearly “perfect storm” of buying conditions…historically low interest rates the first half of the year, a fair amount of inventory available with pent-up seller demand, easier lending requirements, and the buyers’ realization the market had bottomed. However, the very high tier—over $1million– dropped off precipitously with no Gig Harbor waterfront contracts written after the end of August. This followed the nation-wide fall-off of all price ranges in 4^th quarter. This very high-end represented just 10% of all sales—the lowest percentage we’ve seen since 2004.

·         Gig Harbor waterfront sales prices reached their peak in 2007. Prices have dropped 45% since then—back to where they were in 2003-2004.

·         The current slim inventory of Gig Harbor waterfront—coupled with still relatively low interest rates and easier financing could mean improving prices for sellers in 2014. On the other hand, if pent-up sellers place a surge of homes in the marketplace, it could continue to hold down prices. I believe there is a minimum of 300 waterfront owners who are ready to move—if market conditions (prices) will permit.

·         Gig Harbor waterfront homes selling above $1m sold on average for 150% of their assessed value in 2013. Average waterfront was 170 feet.  Nearly all faced West or Northwest, 3 had docks, and 8 were low or no-bank…nothing unusual here.

·         Homes selling from $750,000-1,000,000 sold on average for 120% of their assessed value. Sites averaged 136 feet, slightly more than half faced north or east, most the rest south.

·         Gig Harbor waterfront distressed home sales were down—just 9% of the sales last year were short-sales and 4% were bank-owned. This is a great reduction from two years ago at 9% and 13% respectively. The most expensive bank-owned house sold for $875,000 on Fox Island.

           There may be a window of opportunity for Gig Harbor waterfront  sellers now in early spring to take advantage of low inventory and buyers before more sellers enter the marketplace.

Gig Harbor waterfront 2013’s sales volume was up 33% year-over-year.  April through October posted nearly identical volume each month—14 or 15 homes closing each month.  And the number of sales every month was the highest for Gig Harbor waterfront it had been for at least a decade.

Gig Harbor waterfront 2013’s strong activity was due to a nearly “perfect storm” of buying conditions…historically low interest rates the first half of the year, a fair amount of inventory available with pent-up seller demand, easier lending requirements, and the buyers’ realization the market had bottomed. However, the very high tier—over $1million– dropped off precipitously with no Gig Harbor waterfront contracts written after the end of August. This followed the nation-wide fall-off of all price ranges in 4^th quarter. This very high-end represented just 10% of all sales—the lowest percentage we’ve seen since 2004.

• Gig Harbor waterfront sales prices reached their peak in 2007. Prices have dropped 46% since then–now residing where they were in 2003-2004.
• The current slim inventory of Gig Harbor waterfront—coupled with still relatively low interest rates and easier financing could mean improving prices for sellers in 2014. On the other hand, if pent-up sellers place a surge of homes in the marketplace, it could continue to hold down prices. I believe there is a minimum of 250 waterfront owners who are ready to move—if market conditions (prices) will permit.
• Gig Harbor waterfront homes selling above $1m sold on average for 150% of their assessed value in 2013. Average waterfront was 170 feet.  Nearly all faced West or Northwest, 3 had docks, and 8 were low or no-bank…nothing unusual here.
• Homes selling from $750,000-1,000,000 were on average 120% of their assessed value. Sites here averaged 136 feet, slightly more than half faced north or east, most the rest south.
• Gig Harbor waterfront distressed home sales were down—just 9% of the sales last year were short-sales and 4% were bank-owned. This is a great reduction from two years ago at 9% and 13% respectively. The most expensive bank-owned house sold for $875,000 on Fox Island.

• There may be a window of opportunity for Gig Harbor waterfront  sellers now in early spring to take advantage of low inventory and buyers before more sellers enter the marketplace.

Higher prices for Gig Harbor waterfront as 2012 emerges

A little good news for Gig Harbor waterfront sellers at the beginning of 2012—median prices are up 10% over 2011’s dismal showing.  Plus sales are definitely up—the first year since 2003 we have closed 13 homes in the first two months.

2011’s 4^th quarter strong activity was due to a “perfect storm” of buying conditions…historically low interest rates, a perception the market was bottoming, and “pent-up demand” by sellers to sell.

Homeowners ask me how market conditions have affected the value of their Gig Harbor waterfront home. During the downturn I have tried to provide perspective to this each year. Here are 2011’s statistics, with my comments.

While 2007 was the year the median sales price for Gig Harbor waterfront reached its peak, it was also the year the market started to decline. Prices have dropped 43% overall from 2007 to 2011 and now reside where they were in 2004. Factoring in the first two months of 2012 sales, the Gig Harbor waterfront median price is now down 36% from the pinnacle. The Gig Harbor peninsula actually experienced a slight uptick in prices in 2011 while Key Peninsula dropped.

Distressed homes

13% of the sales last year were bank-owned homes and 9% short-sales. This was higher than 2010 with only 17% in these two categories. In most cases short sale homes sold just below the county assessed value. But bank-owned waterfront homes sold for 25-45% less than assessed value.

Current inventory is low…low

17% fewer Gig Harbor waterfront homes are on the market compared to a year ago. This slim inventory—coupled with fewer foreclosed waterfront homes, still low interest rates and gradually loosing financing should bring a strong spring selling season and improving prices for sellers in 2012. And March is historically the month more contracts are written than any other.

If you would like more information about Gig Harbor waterfront or have just a question, I would be happy to talk with you. You may email me at Carole@Gig Harbor-Waterfront.com or call me at 253.549.6611.

Carole is a Broker at Windermere/Gig Harbor, specializing in Gig Harbor waterfront and view properties. She may be reached at 253.549.6611 or Carole@GigHarbor-Waterfront.com

Gig Harbor WA Salt Waterfront Home for Sale at Horsehead Bay.  It’s a special place. that first walk down the driveway…the water stretches across the view with Mt Rainier rising in the distance beyond the Fox Island bridge, the purple Black Hills and the Cascade mountain range. Across Hales Passage Fox Island bristles with Doug fir trees. The pastoral beauty of McNeil Island and the sun glinting off the waters of Carr Inlet and Shaw’s Cove are a welcome surprise at this salt waterfront home for sale.

On that first stroll past tall grasses and lavender, to this salt waterfront home for sale where the porch chairs await someone who is in search of beauty, it is easy to say: It takes your breath away. Yes it does…but then another deep breath and you feel the serenity of this special place.

This salt waterfront home for sale is a place to watch the sun rise pink and orange and set reflecting pink and purple. The moon rises…full orange…lighting a silver path across the water. Starry nights are for sitting on the porch and listening to the water lap against the shore or the kayak paddles dipping.

Long summer days are for dinners with friends on one of the terraces of this salt waterfront home for sale.  July 4th is a cacophony of fireworks and pageants ringing the shoreline. This is the time to pick berries…strawberries, blueberries, raspberries…all on the property.

The beach is for discovery and play…wakeboarding, fishing, paddling, wading.

With autumn comes morning fog, setting the house adrift until the sun breaks through. Walks on the sandy beach, wine shared with friends and parties in the great room of this salt waterfront home for sale .

Holidays fill this salt waterfront home for sale  with family and food. Tables expand easily, grandparents and college kids sleep in the detached studio bedroom while little ones play in the house.

Soon spring bulbs appear, rhodies bloom and lavender will fill the south lawn. Deer and fox find their way, eagles patrol the beach, seals follow the kayaks.

Friends arrive by boat, by car, on bike or on foot…to celebrate the seasons and share what this special place offers. Life is as full as you want it to be.

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.PrimeGigHarborWaterfront.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