Port Angeles, WA

Foreclosed homes are disappearing as investors and homebuyers avail themselves of low prices, historically good interest rates, the $8,000 first-time buyer tax credit and programs such as the USDA's 100% financing option. For example, of the eight homes in the $250,000 - $300,000 segment that went under contract last month, six were reposessed properties, many new construction.

If you are considering a new home, the inventory now is ten percent stronger than last year with 310 homes on the market.

There are 58 homes priced under $200,000, an increase of nine percent. Homes priced from $200,000 - $249,999 have a 90% increased inventory over last year's level of 39. There are 74 now.

There are 64 in the $250,000 - $299,999 range. Last year there were 56 at this time. The number of dwellings in the $300,000 - $350,000 price point have dropped to 26 from last year's level of 45; although some of the shift can be attributed to repossessed new construction.

The selection of $350,000 - $399,999 homes remains the same in number from last year with 22 now available. And homes priced in the $400's have grown by four to 23 on the market. There are three fewer homes in the $500,000 - $599,999 bracket with ten now for sale.

Homes in the uppermost segment of $600,000+ have seen a 43% increase in selection with 33 available versus the 26 seen last year.

Last year, at the beginning of April, there had been 73 homes sold in this market. This year we've had 43 so far, a decrease of 41 percent.

Home sales in the $400,000's have dropped from four to one so far this year. Homes listed in the $500's have seen two sales, versus three a year ago. And last year we had had two sales of homes in the $600,000+ and in the $300,000 - $349,999 segments. This year, none.

The number of homes sold in the $250,000 - $299,999 and $350,000 - $399,999 sectors have held even from last year's figures with ten and five sold respectively.

The two lowest price segments are under last year's levels with seventeen homes sold in the under $200,000 segment, versus 29 last year and seven having sold in the $200,000 - $249,000 segment against nineteen previously.

Serious investors from J. Paul Getty to Warren Buffet have attributed success to their philosophy of buying when others are fearful and it appears people are beginning to realize both the wisdom of that philosophy as well as the fact that no one can predict where the bottom of the market will be. Buying now may not get you the absolute best price on a home, but delaying could find you without the home you wanted and at a higher interest rate than previously available, cancelling out the advantage of the lower price. And with market levels where they are, it is a buyer's market. Sellers are aware of this fact as repossessions and slower market sales keep pressure on prices. But as the repo's leave the market that pressure will lessen.

Indicative of this market awakening is the number of homes sold within the last six months. A month ago there had been 24 sales in the market. As of the end of March there were 43 sold. While the market is down 41% compared to last year, over the last six months activity is only off by 27 precent with 118 sales since October.

So whether you are looking for an investment property or a new home, a repossession or a good property at a very do-able price, be aware. Opportunity knocks. It doesn't beat down your door.

Other markets are improving and ours is as well. To view the current inventory, visit: www.portangeles.com or call me at 457-0456 for information.

The residential market has both higher inventory and higher sales than last year at this time. By the ninth week of 2008, the Port Angeles market had 264 listings. This year we have 294, an increase of ten percent. Last year we had 19 homes sold. This year there have been 24 in the same period.

The lowest priced segment, those under $200,000, has a slightly smaller offering than last year with 55 now available. Last year there were 58.

Inventory for homes listed in the $200,000 - $249,999 segment have seen an increase of 70% over last year with 68 currently on the market, versus 40 last year.

There are 50% more homes in the $250,000 - $299,999 price range with 63 currently in stock, compared to 42 in 2008.

The next four price points are showing declines, with the number of $300,000 - $349,999 homes showing the strongest narrowing (57%) with just 25 available. A year ago, you would have had 44 to choose from. There are 20 homes priced from $350,000 - $399,999. Last year there were twenty-three.

Moving up to the $400,000 - $499,999 inventory, you'll find seven fewer with 20 now on the market. And if your eyes are cast upon the $500,000 - $599,999 section of homes, we're down two with ten now on the market.

The top segment, those priced at $600,000 and up, is showing an overall increase of 88%. Last year there were eighteen. This year, we have 34. Of those, seven are priced between $625,000 and $649,999; nine are priced from $650,000 to $697,500; seven range from $715,000 - $799,000; and four rank from $825,000 - $899,000.

There are two homes in the $900,000 price range and three priced from $1.1 million to $1.2 as their listing price. There is one currently offered at $1,495,000, one at $1.8MM and one at $4,000,000.

It is now taking about fifteen percent longer to sell a home with the average taking five months. By this time in 2008, it was taking four months and a week.

Homes under $200,000 have a six-point-four month inventory; sixteen-point-six month supply for homes listed between $200,000 - $249,999; and the same holds true for those priced between $300,000 and $349,999.

The homes is listed between $250,000 and $299,999, have an absorption rate of thirteen-point-seven months. There's a fifteen month supply of $350,000 - $399,999 homes; a 20 month supply for $500,000 - $599,999 residences and a two-year supply of homes that are listed between $400,000 and $499,999.

The top bracket has seen three sales in the last six months, but none so far this year. That supply has a five-and-two-thirds years absorption rate. An absorption rate above nine months indicates a buyer's market.

The amount sellers are garnering for their properties, when compared to their asking prices, has dropped slightly. Normally we see an average of 94% - 96% of the list price as the sold price.

Year-to-date, the average has been at 93%; although, homes in the lowest price point are selling for about 96% of list. Homes selling in the $250,000 - $299,999 segment are also faring well with a 95% average.

Homes in both the $200,000 - $249,999 and $300,000 - $349,999 ranges have sold for 92% of asking price, on average. The three homes in the $500's have averaged 91%. The three segments of $300,000 - $349,999, $400,000 - $499,999 and $600,000+ have had no sales so far this year.

Although market activity is increasing (with eight sales currently pending in the first week of February), there were only eleven closings of residential properties in Port Angeles in January. Consequently, the absorption rate (the amount of time it would take to liquidate all of the inventory at its current rate of sales) has risen to slightly more than a year from the eleven months last reported at the end of 2008.

There are currently 285 homes available. Fifteen new listings came on in the last week and 21 expired.

Bargain hunters are looking and finding good deals in all levels of the market, but with 180 of the homes being offered at $299,999 or less many first-time buyers and investors are also finding plenty to choose from.

There are curretly 57 homes priced under $200,000, 63 priced from $200,000 - $249,999, and 60 in the $250,000 - $299,999 range.

Those looking for homes in the $300,000 - $349,999 listings will find 27 to peruse. There are 22 priced from $350,000 - $399,999 and 21 offered at $400,000 - $499,999.

In the $500,000 - $599,999 segment we have nine to look over. Stepping over that threshold, you'll find twelve homes priced from $600,000 - $699,999, four offered in the $700's, five from $800,000 - $899,999 and one in $900,000 - $999,999 listings.

We have one property offered at $1.1million, two at $1.2million and one at $1.8 million.

There is a six month inventory of homes priced at $199,999 and under. Those listed from $200,000 - $249,999 have an absorption rate of 13.7 months. It would take about a month longer to deplete either the $250,000 - $299,999 or the $300,000 - $349,999 listings.

The $350,000 - $399,999 range has just 13.2 months of inventory. At their current sales pace, homes priced from $400,000 - $499,999 have a 25.3 month absorption rate.

It would take 27.3 months to deplete the nine homes priced from $500,000 - $599,999. And with no recent sales in the upper register of the market -- homes priced above $600,000 -- the current absorption rate is four-and-a-third years.

The one home that sold for $550,000 in January sold for 86% of the original price. There were four homes that sold in the $350,000 - $399,999 range. One sold for 99% of the original price; one for 96.4%; one for 90% and one for 88 percent. One in the $250,000 - $299,999 range sold for 92% of the original price.

There were two that were purchased in the $200,000 - $249,999 price point; one for 92% of original list and one for 68.25 percent. The two lowest priced sales were under $199,999. The first went for 100% and sold in three weeks. The second sold at 85% after 61 days.

Over the course of 2007, 427 homes sold in the Port Angeles market. In 2008 the number dropped by 31% to 295 sold. At the end of 2007 we had 241 homes on the market and we had about six-and-three-quarter months of inventory. It took about two-and-a-half months to move a house back then.

Now we have 276 homes on the market - because 67 expired last week; although some will be back. The week before we had 333 on the market. Even at the lower number, we have about eleven months of inventory. This year, the average home sold in about three-and-a-half months. According to our in-house calculations the average home lowered nine-percent in value this year.

At the end of the first quarter of this year, sales were down ten percent from ‘07 and it was taking about 30% longer to sell a home, even though the inventory was virtually identical in total homes on the market (281 in ‘08 vs. 279 in ‘07).

By mid-year, sales were down 26% from the year previous and the time needed for a sale had crept to 32% longer than the year before.

The market had slowed by the end of September to where sales were down 32%, it was taking slightly more than four months to move a house and we had an absorption rate of one year, if all 329 homes were to sell.

As we begin 2009, this market is mirroring the national average, eleven months of inventory.

Of the 276 homes, 58 are priced under $200,000 with an estimated five-and-a-half months of inventory. There are 65 priced from $200,000 - $249,999 with a thirteen-and-a-half month absorption rate.

The next two price segments each have thirteen months of inventory. In the $250,000 - $299,999 range there are 56 homes with 26 in the $300,000 - $349,999 segment. The $350,000 - $399,999 grouping has just above thirteen months and a week's worth of inventory. After that, you might be in for a long haul if you're the seller.

The $400,000 - $499,999 group has almost 23 months of inventory with nineteen currently listed. The $500,000 - $599,999 bracket has two years of inventory with eight on the market.

Looking at the top of the pricing ladder, homes priced at $600,000 or better, there are 24 homes being offered accompanied by a four year absorption rate.

On the bright side -- this is a buyer's market, but if you are a seller, while you may not get this year what you might have gotten two years ago, you also won't be paying out like you would have two years ago if you'll be buying as well. And with better interest rates than we've seen in a long time, you'll probably make out better than you otherwise would have.

Two months ago, annual sales levels were down by about fifty percent. Last month they were down about thirty-five percent. This month, just 30% with 280 sales year-to-date versus 398 in 2007.

This is not a cause for alarm, despite what the national media are extolling. Annual sales were down in ‘07 from ‘06 and they are again lower this year from last. Bear in mind that real estate markets are similar to lumbering beasts, they don't speed up or slow quickly. They are more cyclical in nature. After a dramatic upswing (‘05 - ‘06) there is always a time when the pendulum swings back.

Some buyers are concerned that prices may continue to lower. And not to dismiss that concern, but housing is not like a consumable good. Buying a turkey during the week before Thanksgiving is wise because stores take a loss (this year of 72 cents a pound) to get you in the door.

Homes, on the other hand, will continue to appreciate; although the growth will vary from year to year. You may end up spending more in sales price now than you might six months from now, but you won't be losing money if you buy now.

The home you're looking at may not be there in six months. Even in this slower market, last week seven sold, four went under contract, five came on and eighteen were withdrawn or expired as listings. Read that as inventory down 29, up five.

Interest rates are also very low right now, allowing you to get even a better deal than just a lower price.

If your budget is in the under $200,000 range there are 72 homes currently available, up twelve percent from last year.

The $200,000 - $249,999 level also has 72 homes available, 42% more than a year ago. The selection of homes in the $250,000 - $299,999 range is up 30% in the number of offerings with 77 currently listed.

If your budget falls into the $300,000 - $349,999 or $350,000 - $399,999 price level, there are 31 homes in each, with a three percent and six-and-a-half percent increased inventory respectively.

There are fifteen percent fewer offerings in the $400,000 - $499,999 segment with 23 homes listed for sale. Last year we had twice as many homes priced from $500,000 to $599,999. There are now nine to choose from.

In the top level, homes priced from $600,000, there are 23; which is up seventeen percent from last year's levels.

It's taking an average of four-and-a-half months to sell a home and we have almost thirteen months of inventory. Last year it was taking almost the same amount of time to sell a home (slightly less) during this time of year, but we had 44% fewer homes and only about seven months of inventory.

If you're thinking of selling, we have almost seven months of inventory priced under $200,000. The $200,000 - $249,999 and $250,000 - $299,999 segments have fourteen and fifteen months, respectively. Whether you're looking at the low or upper $300,000's, there's almost seventeen months of inventory.

Homes priced above that have much longer waiting times. The $400,000 - $499,999 homes have 27.7 months of inventory and those priced from $500,000 to $599,999 are in a segment that would take over four-and-a-half years (56.3 months) to sell out. The top-priced homes ($600,000+) have 46 months of inventory.