Existing-home sales post gain

The attached article from Inman News reports good National real estate activity and news. We often hear, and I agree, that all areas are different in Real Estate.  Pricing and sales stats from Arizona or Florida have no bearing on what to expect in the Gig Harbor and Key Peninsula area real estate market. National sales stats should be considered as information only, or a guide to the overall confidence and condition of the national housing economy.  But, you ask, do these reports affect your neighborhood market?  Although limited, yes they do.  When the national reports show strengthening markets this increases consumer confidence this improves market activity and sales.  Unfortunately, the opposite can also be said when the reports are not so promising.  Now, while the Gig Harbor/Key Peninsula market for January closed sales was anything but rosy (see my earlier post), nationally we witnessed the third increase in four months of closed sales.  This helped reduce the number of active listings which, in turn, lowered the national absorption rate to just over six months of inventory.  This reduction brings us closer to what economists consider a balanced national market, or “a good balance between supply and demand”. This balanced market favors buyers and sellers equally and brings stability to home pricing.  This is good news as we near the spring of 2012.  Click here to see the entire article.

Another Gig Harbor Waterfront Home - SOLD!

Congratulations to Chris and Barbara.  We just closed the sale of their luxurious Gig Harbor waterfront home.  The market is heating up with 2012 predicted to be a year of recovery and is forecast to have appreciation in many areas.  If you have questions about your real estate options please give me a call for some honest answers and guidance.  I make no exaggerated claims to be the best area Realtor - just possibly the best for you.

Two Waters Arts Alliance Spring Fling 2012

Celebrating 10 years of community support, Two Waters Arts Alliance is a non-profit community organization committed to providing opportunities for Key Peninsula residents of all ages to create and experience art at many levels.  TWAA focus in 2012 and 2013 will be in supporting Key Peninsula Schools.  Through this partnership with the Peninsula School District the Artists in Schools Program will bring much needed and greatly appreciated programs supporting areas often reduced by financial restrictions. 

The TWAA is supported by Donations, Memberships and their many Volunteers.  One of the events put on by the TWAA is the annual Spring Fling.  This is a fun filled evening of amazing art, auction, wine tasting and community support.  Click here for additional details and information on the TWAA and where you can purchase your tickets for this wonderful event.  Make a plan to attend the 2012 TWAA Spring Fling.   We’ll see you there!

Victoria BC's Hanging Baskets Assembly - Updated Link

I just found that the website for the City of Victoria has been updated and the link I posted previously led to a 'Page Not Found' message – frustrating to say the least.  Well, I searched through the new site to locate the article on the history of these beauties and the assembly instructions brochure.  Click here to go to the new City of Victoria website and instructions.  The assembly instruction brochure, in pdf form, is at the bottom of the page under ‘How to Make Your Own Sun Basket’.  These are simple, step by step instructions that, with a little effort and care, will provide vibrant colors throughout the summer.   Don’t be afraid to give this a try, and please keep me posted with your success.  I will do the same.

Victoria BC's Hanging Baskets

If you have traveled a little north from Gig Harbor and visited Victoria BC during the summer you could not have missed the beautiful baskets hanging throughout the city.  Many streets are lined with these colorful beauties.  This display enhances the Old English charm you’ll experience in British Columbia’s capitol city.  I have tried to mimic these baskets many times resulting in a pretty, but wimpy, outcome which has never come close to their full, head on, beauty.  I am addicted to gardening so I will try once again this year, but now am armed with directions, plant list and a new confidence.  If you are also up for a challenge, click here for the City of Victoria’s website.  At the bottom of the page is a link to a PDF flyer with directions, plant list and schedule.  I am a little tardy in starting this project, but will still have plenty of summer to enjoy them.  If you do choose to try this, please keep me posted with your progress and success.

Coastal Livings Top 10 Harbors

Many residents in the Gig Harbor and Key Peninsula area subscribe to Coastal Living for travel or recreation information.  Coastal Living also provides many Top 10 picks including Romantic Retreats, Bike Trips, Public Gardens and Exotic Beach Destinations.  When it comes to the best harbor we were pleased to have Gig Harbor chosen as the Best Harbor town in the country.  This article was heavily distributed in late 2011, but it deserves another round for those who may have missed it.  Please click here to see the complete Top Ten Harbor standings.

This is not a report Costal Living takes on every year and this was first published back in 2007.  This may seem dated; but it is their most recent report, and as it just keeps getting better here, we still hold this to be true.  Come to Gig Harbor and witness first hand why it was chosen as the #1 Harbor in the country. 



Education Wins Throughout Pierce County

The unofficial results posted on the Pierce County Auditors Elections webpage show a clean sweep of School Levy’s throughout Pierce County (not including multi-county district levys).  This is a clear sign that Pierce County supports education and that it remains important to our communities future.  I am personally thankful that the Replacement Levy for the Peninsula School District passed.  There were many inaccuracies in the campaign against this levy, but I am happy that most saw through the misdirection and made a sound choice for our community.  Click here for up to date results.

Education is the most important service our state provides, and is vital to our economic growth.  It is always the first to be reduced but should be the last.  I don’t want to get too political here, but we must now not let our elected officials and leaders(?) continue to cut away at our states education funding before making likewise adjustments in their own programs, inflated salaries or benefits (where else is there more wasted tax dollars than there?).  Please write, call or email your representatives to let them know that further cuts to education are not an acceptable solution to their inability to balance a budget.

Federal grant restores transportation services to the Key Peninsula

Earlier cuts to the transportation budget led to reductions/cancellation of bus services for those with special needs on the Key Peninsula.  A portion of these services has been restored through an $80,096 federal grant awarded to the Puget Sound Educational Service District (PSESD) from the Washington State Department of Transportation.  Special thanks go out to PSESD, Peninsula School District (another reason to vote YES on the replacement levy) and The Mustard Seed Project for working together to get this service up and running.  Click here to learn more about this wonderful community service, links to bus schedules and those who made it possible.

Gig Harbor and the Key Peninsula Closed Home Sales Report Highlights for January 2012

We’ve closed the door on the first month of 2012 so let’s examine how we did in real estate. 

Gig Harbor and Key Peninsula Combined Market L

This reflects the combined markets of Gig Harbor and the Key Peninsula.  Sales activity for these individual areas are reviewed below.

The snow and ice storm created a wild week for everyone and contributed greatly to the reduced unit sales for the month.  With only 38 closed sales, total unit sales in the combined Gig Harbor/Key Peninsula market were down nearly 40% from the 63 units sold in December 2011.  Yes, January is typically a slower month but when compared to January of 2011 we still realized over a 9.5% decline.  The Average Price of $327,005 took a double digit decline for Owner Occupied and Short Sales, with Bank Ownedposting a 35% gain.  The Median price of $314, 750 for the combined area and sales type fluctuated with nearly a 13% increase, with the Short Sales realizing an 18% drop in price.  The recent trends don’t support a drop in unit sales of this magnitude, so I would predict that we will likely see a correction next month.

This large percentage drop in total units sold also has a negative impact on the absorption rate, which estimates how many months it will take to sell the current active properties.  January did post a 3.23% reduction in active listings from 588 to 569, which often helps in lowering the absorption rate.  However, due to the nearly 40% drop in closed sales, the opposite occurred and the three month sales absorption rate increased from 8.9 months to 11.3.  Now, keep in mind that this is calculated on the narrow time frame of three months where one poor month can have a great effect on the stats.  If we look at a broader absorption rate that includes the last twelve months unit sales average, we get a little more positive view.  Here for the past three months (Nov., Dec., Jan.) we have seen the rate decline from 9.6, to last month’s 8.8 to the current 8.6 months.  Basic Supply and Demand; the fewer homes on the market creates more stable or increasing prices.  This declining trend steadily inches us toward a healthy market of the five to six month absorption rate. 

Let’s now take a look at pending sales which is a great indicator of the coming months sales numbers.  Currently there are 153 homes under contract as 31 Pending Inspection, 92 Pending and 30 Pending Short Sale in the combined Gig Harbor Key Peninsula area.  This equates to an increase of 17%, or 22 units, over last month.   With over 50% of these pending sale priced between $200 and $400K this remains the strongest market price area.  Keep in mind that these are ‘Pending’ sales and that not all of these will close in February, or at all.  This is only an indicator of what the sales numbers may be in the months ahead.

Gig Harbor Market L

No other way to say it; Gig Harbor had a terrible month in closed homes sales in January.  Total units sold dropped from Dec. by over 53% to a mere 22 total units sold, and down nearly 30% from Jan of 2011.  Sales also posted an increase in days on market (DOM) of 63% to 178 days from the prior month.  Median and Average prices also dipped into negative territory with nearly 7% and 18% declines or $326,150 and $357,807 respectively.  Bank Owned sales, also down in units, posted the only positive activity with gains in both Median and Average prices to $236,750 and $267,613.  But with a total of only 4 sales in this category the numbers can be swayed easily by a single sale.  

Active listings decreased by over 5% to 397, which would normally cause the absorption rate to also fall, but with the lower units sold in January this caused the three month absorption rate to increase to 11.5 months inventory. Overall, listing prices had a very modest increase in both Median and Average price by 2.26% and 2.61% respectively.

Of the 153 homes pending mentioned above, 117 of these are in Gig Harbor as 25 Pending Inspection, 66 Pending and 26 Pending Short Sale.  Of the 117 pending homes in the Gig Harbor market, 76% are price between $200 and $400K which remains the strongest market price range in the area. 

Owner Occupied homes continue to outnumber the Bank-Owned (foreclosure) and Short Sales in Gig Harbor closed sales.  This dominance of owner occupied closed sales will provide greater stability in Gig Harbor Market in coming months.

Key Peninsula Market K

Key Peninsula sales held steady posting 16 closed sales for the second month in a row.  This is fairly good news because the sales didn’t decrease as with Gig Harbor, and this is actually an increase over Jan 2011 units sale of only 11 closed sales.  Another positive note is that in total sales, both Median and Average prices posted increases of 18.77% and 52.50% to $216,750 and $284,653 respectively.   

Of the 16 closed sales, 9 were bank owned or short sales.  This distressed home sales majority has had negative effects on owner occupied home pricing in the last few months. But January posted very nice increases in owner occupied of 24.76% ($264,500) and 81.68% ($343,857) to the Median and Average prices respectively.  This is the sixth consecutive month where distressed properties have outnumbered or equaled owner occupied sales, but a welcome reversal of recent declining prices. 

Active listings had a slight increase of just over 2% to 172 listings.  With these we also received a slight increase in the median and average listing prices of 1.10% ($232,425) and 2.92% ($276,776) respectively.  With the increase in listing inventory, the three month absorption rate increased to 11 months of inventory.  This remains a high factor and with inventory at this level it remains a buyers’ market on the KP.

Looking towards coming months, 36 homes are pending as 6 Pending Inspection, 26 Pending and 4 Pending Short Sale.  This remains about average with the past few months, but with only 4 homes pending short sale we may be seeing owner occupied sales outnumber distressed in the near future.  If this does materialize there should be a corresponding increase in Median and Average prices as well.  In these Pending categories, the most active price range had a small increase to between $140K and $350K.

Recap

2012 did not start out with great numbers.  Gig Harbor posted very poor closed sales with a decrease in prices and increase to DOM.  The KP had one of its better months with steady sales, an increase in prices and a decrease in DOM.  It has been a while since I have been able to post positive activity for the KP, and it is very welcome news.

There are some amazing values in the market right now and interest rates are unbelievably low.  If you know anyone who may be able to take advantage of this market please let me know or have them get in contact with me. 

Are you curious about where I get the information for this report?  In preparing the market activity spreadsheet and recap, I look at single family residential and condominiums only.  I do not include Manufactured Homes (where the land is leased or rented) or multiple family units, as these sales are few but tend to skew the numbers greatly.  The units sold, DOM, and pricing figures are taken from Northwest MLS reports and entered into the spreadsheet where the percentages are calculated.  If you have questions regarding your specific location, feel free to contact me for a more defined report.

Narrows Bridge toll-rate discussion Tonight

Tacoma Narrows Bridge toll discussion and Open House will be held tonight at the Gig Harbor Civic Center, 3510 Grandview St. from 5:30 to 6:30.  This is a great opportunity to hear plans first hand and voice your concern or questions.  This is an important decision that will affect our community for years to come.

For additional information and links to details visit Washington State Department of Transportation.

Another beautiful morning on the Key Peninsula.  The KP and Gig Harbor are blessed with spectacular views and, surrounded by the waters of Puget Sound; views like this are not uncommon.  Many areas with eastern exposure are blessed with the majesty of Mt Rainier, while a western exposure has the benefit of overlooking sparkling waters to the Cascade Mtns.  Weather your preference is the beauty of an eastern early sunrise or the warm western sunsets this area has plenty of opportunities for you.  With the abundance of shoreline, there are many areas, lakes and parks where you can enjoy water activities, take a relaxing stroll or just marvel at the surrounding beauty.  Is it any wonder why I love this area?

Replacement Levy 2012 – Frequently Asked Questions (FAQ)

If you are one of the residents in Gig Harbor or Key Peninsula who are curious on what the passing of the Peninsula School District Replacement Levy may cost, relax and read on.  The following is taken from a list of FAQ’s on the levy addressing this and many other questions.  Click on the image or the following link to read the entire list:  

Replacement Levy 2012 – Frequently Asked Questions (FAQ)



Click on image to see entire FAQ list

 Q – How much more will this replacement levy cost the average homeowner? 
 A – The current levy approved by the taxpayers in 2009 will be assessed at $1.94 per $1,000 of assessed value in 2012. A homeowner with a home valued at $300,000 would pay $582 in property taxes to the Peninsula School District. The proposed replacement levy estimates tax rates to be $2.14 in 2013 or about $642 for a $300,000 home. This would be $60 difference annually, or $5 per month.



Most should agree that this is a very small price to pay for the highly regarded level of education students receive in the Peninsula School District.  Let's see now, highly saught after level of education at one of the least rates of property taxes in Pierce County.  Seems like a no brainer to me. 

Thank you for your YES vote.

Vote 'YES' for Education - Peninsula School District Levy Feb 14, 2012

Let’s dig a little deeper into the upcoming replacement levy for the Peninsula School District.  The key word here is ‘Replacement’.  This levy is not a new tax, but renews the expiring levy approved by voters in February 2009.  Yes, there will be a slight increase in the rate and I will pay this gladly.  I have no children but strongly feel that a quality education of our young is paramount to a sound, livable community and is an investment in our future citizens and leaders. 

This Replacement Levy funds over 20% of the district’s general fund.  For a breakdown of the services affected by this levy visit www.SupportGreatSchools.com. 

The rounds of cuts to education have created a great strain in the ability of Peninsula School District to maintain the current level of quality education.  Due to cuts in state funding staff, administrators and teachers have all experienced decreases in pay.  These are decreases in compensation for an already overlooked, overburdened and underappreciated group of professionals.  Failure to pass this levy would mean even further cuts.

I have read posts from those who are against this levy and as I read them the consensus is; they are unhappy with the way tax dollars are allocated or spent, or they already pay too much.  They say that a No vote will send a message and the system, or how monies are spent, will change.  I believe this is very narrow-minded and totally incorrect.  There are only two ways to make your point; 1) vote them out of office, or 2) get involved by actively attending school district meetings, joining a PTA or volunteer at a district school in your area.  If you think any other action will result in change you are sadly mistaken.

The second complaint is that we already paying too much.  I am uncertain where their numbers are derived, but by the signs I have seen posted the claim is that we currently pay $9459/student per year. In actuality, the correct amount from the states 2011 ‘A Citizens Guide to Washington State K-12 Finance’ is $10,035.  Of this 65.6%, or $6584, is funded by state resources; $1705, or 17%, is from local taxes with the balance coming from federal sources or other revenue.  Now that we have the actual amount per student paid from local taxes, let’s do the math; $1705 divided by the 180 days in a school year comes out to $9.47 per day.  Where else can you hire an educator, counselor, nursemaid, role-model, art, science and music instruction and coach for $9.47 a day?  As I mentioned earlier, I don’t have any kids but I see the value in a quality public school system and am happy to make this investment in my communities’ future. 

One final point I would like to make is that being in Real Estate, I work with many people who are considering relocating to the Gig Harbor area.  One of the first questions asked every time is ‘How are the schools in the area’.  People want to move here because of the quality of our education system.  The market value of homes is directly proportionate to the quality of schools.  If this levy fails it will be devastating to the quality of education that is currently provided.  This lower level of education will result in lower test scores and a subsequent downgrade of the Peninsula School District, which will make the area less attractive to buyers.  Fewer sales equal lower value and lower prices – Simple supply and demand economics.

As you fill out your ballot, keep in mind that the Peninsula School District is a top rated school district while, even with the proposed replacement levy, we pay one of the lowest tax rates in Pierce County.  Please vote YES in the upcoming election in support of our Great Schools.