Entry-Level Priced Homes Dominate Market

Entry level homes are in greater abundance now than they have been in a long time. At the end of September there were 106 homes available for under $200,000 in the Port Angeles market. For the same time period in 2008 there were 69 and if you look back to ‘07 you'd find 53.

The only other price point with an increase in selection is the $200,000 - $249,999 grouping with 69; 25% more than last year.

The strongest decline in availability is in the $250,000 - $299,999 segment. There are just 31 on the market, a 56% decline from a year ago.

If your budget is more in line with a $300,000 - $349,999 priced home there are 29 to choose from -- a decline of 24% rom the 2008 level.

The next two segments, $350,000 - $399,999 and $400,000 - $499,999 are down an average of 35% with 21 and 23 respectively available.

Two years ago at this time there were 24 homes priced from $500,000 - $599,999. Last year there were thirteen. This year, twelve.

The top range of $600,000 and above has eighteen percent fewer -- a selection of 28 homes currently.

It's taking about one month longer for homes to move off the market now with an average time of just over five months before a listing goes under contract.

The $250,000 - $299,999 group of homes have just over six months of inventory. But even though three plus times larger, the under $200,000 will all be gone in a bit more than eight months at their current sales rate.

There is a year and a week's worth of inventory in the $200,000 - $249,999 range and about thirteen-and-a-half months worth of supply in the homes selling for $300,000 - $349,999.

The homes priced above those have a three-and-a-half year, almost four year, slightly more than six year, and a fourteen-year-seven-month supply for the three-fifty to four, four to five, five to six and six hundred thousand plus brackets.

Year to date, homes priced under $400,000 are selling for about five percent below asking price. Those above that point are going for an average of twelve to fifteen percent less.

Sales activity in the last six months has been stronger than in 2008. This year 162 sold between March and the end of September. Last year 158 changed hands.

Looking at the sales so far this year, we are still down about ten percent from last year's numbers with 208 sold by the end of September, ‘09, versus 228 in 2008. While nowhere near the levels of two years ago -- there were 341 sold in the same time span of 2007 -- our market has fared better than many and sales activity has grown throughout the year.

There is speculation that the government may extend the homebuyer's credit program beyond November 30th. There are also rumours that the government may try to do more and enhance the program beyond its current monetary limit and/or include buyers beyond the first-timers.

Regardless of what Uncle Sugar does, the numbers are screaming that now is the time for savvy real estate buyers, new or otherwise, to find a good home, a wise investment or to move up to the home they want at a historically low interest rate that. . . according to all indicators. . . will soon become one solely for the books and fond rememberance.