Gig Harbor home sales up 5 of last 6 months

Gig Harbor home sales up 5 of last 6 months

At least four major statistics show a turn-around in Gig Harbor home sales, including sales prices.

• October is the fifth month in the past six showing home sales better than 2008, equaling September and a 15% increase over last October.

• Year-to-date prices have slipped only 6% for Gig Harbor home sales but 11% for Key Peninsula. This is slowing the double digit downward spiral that has occurred over the last four quarters and is a positive sign of market stabilization.

• Absorption rate, or the number of months supply of homes, has changed dramatically in some price ranges. A neutral market-or one in equilibrium--is five to six months of listings, based on the number of sales the past month. Anything fewer and the market is considered a seller's market--above a buyer's market. In Key Peninsula the price ranges of $250-350,000 and $450-550,000 are now in the category of a seller's market. In Gig Harbor home sales nothing qualifies as a seller's market but $350-450,000 and $600-650,000 price ranges are in "neutral market" territory. These ranges will change from week to week but we have seen steadying in more price categories. Currently at $800,000 and above there are four homes under contract and one closed sale-but 148 on the market.

	Gig Harbor	Gig Harbor	Gig Harbor		Key Peninsula	Key Peninsula	Key Peninsula
	Oct 2009	Sep 2009	Oct 2008		Oct 2009	Sept 2009	Oct 2008
# Sold	50	49	41		23	25	21
Sales Price	377,250	362,000	417000		252,250	191,000	337,000
YTD Price Change	▼6%				▼11%
# On Market	615	695	750		186	200	215
Absorption	12 mo	14 mo	20 mo		8 mo	8 mo	10 mo
Market Time	128	182	210		139	172	186
LP/SP Ratio	96%	96%	93.6%		94%	97.25%	95.5%
Pending	75				30

Here is a smattering of other market tidbits

• 31% of listed homes in Gig Harbor are vacant-40% in Key Peninsula.
• 22 homes flipped from pending status to active in October-half the number that flipped in third quarter. Many of these stem from financing issues or short sale procedures.
• Seattle has the highest rate of commercial real estate (new construction, subdivisions) in default in the nation-31% of all loans.

Gig Harbor home sales-and prices--should continue to firm up over fall and winter, with legislation just signed into law that extends the first-time homebuyer $8000 tax credit as well as expanding the program to give a $6500 credit to owners living in their home for the past five years. I can see price pockets during the next two to three quarters where demand equals the supply, which serves to increase the median price.

Carole Holmaas is an Associate Broker at Windermere Real Estate, licensed since 1967. She may be reached at Carole@ISellGigHarbor.com or 253.549.6611. Her real estate blog may be read at http://blog.ISellGigHarbor.com