Sequim, WA

People from around the Western United States often ask, "What is the secret of the weather in Sequim?" We have a rain shadow, and it's a big attraction to the area.

But it also does not rain on the Northern Olympic Peninsula as much as people think, unless you climb up into the mountain rain forest south of us. But if you like water, mountains, sun and a wonderful community of generous retired people, all basking in this rain shadow, you would love Sequim.

For a detailed weatherman's explanation, go to the "Secret of Sequim Weather."

The average price of Sequim homes sold in the first five months of 2008 (from January 1, 2008 to May 31, 2008) is $324,450.

The primary reason I compiled this data from our local MLS is because periodically I receive requests from someone outside the area who wants to purchase a stick built home for $50,000 to $100,000. In Sequim, the least expensive vacant lots start around $80,000 and many are $150 to $300,000. That's before a home is built on the lot. A home that is inhabitable and listed under $225,000 will be sold yesterday. They just don't exist.

A search of sold homes in the MLS will show a small list of homes sold under $200,000, but these are typically small lots with an old shack that may or may not be livable. I just sold a home in May for $210,000 in Carlsborg, often referred to as Sequim, and while it was not a shack, it was only about 730 square feet, and it was built in about 1937. It had the original electrical wiring still in the walls, and the only heat in the house was one small electric heater that plugged into the wall. For my clients, a young couple who were first time home buyers, this was the only home they could afford, and for this couple with no children, it is a good start. I haven't even seen anything else like this on the market.

The bottom line is that it is unrealistic to expect to find a listed home for sale in the Sequim area with 3 bedrooms, 2 baths, 1800 square feet, and a garage for anything less than $275,000. Okay, there's room to play with the numbers here, but the point is a home for $60,000 - no way. A home like this for $100,000 - no way. $200,000 - good luck finding it, because if it even popped up on the radar, it would be sold in days. But no one in their right mind would sell a house in days way below market value.

One important clarification I need to add. It is possible to find a mobile home or even a manufactured home for less than $100,000, but that will be on a leased lot in a mobile home park. In addition, most of the mobile home parks are for senior citizens only. The lot rental for these lots is quite expensive, so what appears to be an inexpensive option for retired seniors is often not so inexpensive in the long run when you add $400 per month for lot rental.

[To get a reasonably accurate figure, I weighted the data by eliminating everything below $100,000 and above $800,000, which left 112 homes. In this area, homes cannot be found for less than $200,000 (and that may not be inhabitable), and homes above $800,000 account for a very small percentage (less than 2%) of the market. Eliminating this data prevents the results from being skewed. Source of data: Olympic Listing Service]

Courtesy Sequim & Port Angeles Real Estate, LLC

Call McHugh Realtors for all your real estate needs. Alan, Paul, Rochelle, Jane and Patrick are ready for your call. If you are looking to retire or relocate, Sequim is a great place to live. With 300 sunny days a year, every day is a good day!

Home sales in May increased over April and prices continue to zero in on what the buyers are looking for. Numbers are average.

Homes Land

• Selling Price $277,769 $114,685
• Original List Price $292,176 $139,629
• List to Sale Ratio 95% 82%
• Days on Market 111 148
• Total Sold 46 7

The Sequim real estate market, as well as Port Angeles', is uniquely localized, but that is true of much of the country. National markets, trends, and regional economic variables impact, but do not determine local prices and sales. There is one market that impacts Sequim and Port Angeles home sales more than most, and that is the California market.

If California homeowners are not able to sell their homes, a significant percentage of buyers of homes and land in Sequim and Port Angeles go away. But there are signs of improvement.

"Despite all the dire headlines about the drop in real estate prices, 56 percent of the 292 metropolitan areas surveyed nationwide showed net price appreciation for the past year. . . . Kerry Killinger, CEO of Washington Mutual, said his company is seeing 'a slight improvement over the last month or so' in California -- the single largest and hardest hit segment of the U.S. housing market. 'There's (been) some pickup in demand,' Killinger said. '(We're) watching this very closely (because) this may be indicating a troughing of conditions.' That means that maybe -- just maybe -- the protracted real estate plunge in California is showing hints of finally flattening out." [RealtyTimes online]

In the first four months of this year, 168 homes sold in Sequim and Port Angeles. That's an average of 42 homes sold per month. Sales are down from the banner year of 2005, but buyers are clearly still buying, and that is good news for home sellers. In comparison, the first four months of 2007 had total sales of 200, or 50 homes sold per month. This is by no means a housing crash, certainly not in a small real estate market such as Sequim and Port Angeles.

[Source of data: Olympic Listing Service, homes sold are site built only]
Courtesy Sequim & Port Angeles Real Estate, LLC

Sequim is proud of its Recreation Center known as SARC. It's a great place to get some cardio exercise, do a little weightlifting, play some basketball or racketball, swim in the pool, or relax in the jacuzzi or steam room.

When my own children were young, we spent a lot of time in the pool, including the kittie pool. When my daughter was about 3 years old, she was walking toward me on the little shelf that you sit on, and with the water boiling, she did not know their was a drop off. She stepped off and disappeared. Of course, I immediately lifted her up, but it was like one of those funny home videos that just made us laugh. One minute she was there looking at me expectantly, and the next moment she was out of site. If I was surprised, she was really surprised. Too funny!

After a hard day, come and relax at SARC. Enjoy the positive ions in the air and the great conversation in the hot tub. Look for me. I'm the bald guy.

See the SARC website.