Remodeling Projects and ROI

Many homeowners interested in updating their home often consider what it will cost, the benefit of the upgrade, and mostly which will net them the greatest value in return on the investment (ROI).  Costs and ROI are very important, but also keep in mind that not all renovations bring the same percent of return and, aside from a total remodel or ‘flip’, rarely will the ROI equal the initial investment.  Those who are not considering selling undertake these upgrades to improve their comfort and overall livability of their home.  Those looking to sell make upgrades so their home will be more inviting, net a greater price and attract more buyers.  There are many upgrades that won’t necessarily add value to a home, but these tend to support the listing price as compared to other homes in the same market.  Click here to view a report on improvements and their ROI published by DSNews.com -or-  Check out percentages in your area in the 2013 Remodeling vs Cost Report published by Remodeling Magazine by clicking here.

Low Listing Inventory Challenges Housing Recovery

The real estate market has certainly turned the corner.  With sales up to levels we have not seen since 2007, affordable prices and record low interest rates, the real estate market is nourishing the overall economic recovery.  But the one obstacle we are challenged with now is the lack of active listing inventory, and this inventory shortage may actually stall our recovery.  The National Association of Realtors reports that we currently have a 4.4 month supply of inventory. This is down two points from a year ago and nearing levels in 2005 from the midst of the housing boom.

This low inventory may be good for prices and sellers may be holding off listing until prices go up so they can net more on their sale.  But this may actually cost more in the long run.  Yes, sellers may net a little more on their sale as prices increase, but they will now have to pay more for their new home.  Basically, sell for a lower price - buy for a lower price, sell for a high price – buy for a high price.  Even with the low interest rates if your principle loan value is greater, your mortgage will also be greater.  Factor this by the term of the mortgage and this can easily eat away any monies made by waiting for a higher selling price.  The best time to sell a home is when buyers are active and buying.

Click here for more on this inventory shortage posted by the KCM Blog and a link to the National Association of Realtors on Existing Home Sales Report.

If you or someone you know have been waiting for the right time to sell a home . . . contact me and we can discuss.  Out of Washington State - No worries; I have associates all over the country who can help.

Peninsula Youth Orchestra Free Winter Concert

The Peninsula Youth Orchestra is a non-profit association that offers professional string instruction and performance opportunities for budding artists to advanced musicians.  Based in Gig Harbor, the PYOA’s four youth orchestras feature young musicians from the Gig Harbor/Key Peninsula area to Bremerton and Puyallup.  String instrument music is a area often overlooked in public education, and led by state certified music instructors the PYOA fills a need currently lacking in the Peninsula and South Kitsap school districts.  Please show your support of these young musicians by attending the Peninsula Youth Orchestra Free Winter Concert on January 27^th at 3:00pm in the Peninsula High School Auditorium. Click here to view a performance of these young artists. For more information, additional performances and photos, visit their website at: www.harborpyo.org or email info@harborpyo.org.  

New Lake Minterwood Listing

Welcome home to Lake Minterwood, a lakeside community with private lake access, playground and neighborhood activities. This single level home is nicely updated featuring kitchen with sold granite counters, breakfast bar, custom cherry cabinets, stainless appliances and easy care laminate wood flooring. Spacious Family room boasts warming fireplace and easy access to deck and inviting Hot Tub. Pleasing Living and Dining rooms welcome entertaining on any occasion. Easy access shopping and Hwy 16.  Click here for additional photos and info on where you could be enjoying this coming summer!  Feel free to call me with any questions.  I'm here to help you realize your home ownership dream.

Key Peninsula Civic Center's Annual Crab Feed

Reserve the date and get your tickets soon, this annual event is always fun and very tasty.  Dinner includes fresh Dungeness crab, spaghetti, salad and garlic bread (yum!).  Make it twice the fun by stopping by the Blend Wine Shop to pick up your tickets and sampling some great wines, or you can also get tickets at Sunnycrest Nursery while you plan your spring gardening.  Tickets are also available at the KP Civic Center, but they don’t have garden supplies or wine and I like wine and am addicted to gardening!

Gig Harbor & Key Peninsula End Year With Robust Home Sales

Welcome to a New Year and all the great opportunities ahead for us when we choose to see them.  In the real estate market, 2013 looks to be a pivotal year as low listing inventory at rock-bottom prices with amazing low interest rates create a shift to a sellers’ market.  December 2012 sales highlights for Gig Harbor and the Key Peninsula are listed below.  Feel free to contact me if you would like to receive my complete statistic spreadsheet or if you have any questions.  

I believe that 2013 will be a very busy year in Real Estate.  Personally, 2012 posted my best year in Real Estate so I have now set some lofty goals for myself and my business for 2013.  With that in mind I would appreciate that you keep me in mind when someone you know is considering buying or selling a home.  With an extensive network of professional Realtors, I can help clients in every state including Alaska and Hawaii, and even parts of Canada.

Gig Harbor & Key Peninsula Closed Home Sales Report for December 2012 

Gig Harbor and Key Peninsula Combined Market J

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

The Gig Harbor and Key Peninsula real estate market finished off 2012 posting some impressive numbers.  Total sales increased from the prior month and year, Days on Market declined from the prior month and year, and aside from a small decline in the Median price from November, overall prices showed nice increases as well.  Continuing a nice trend, the final month in 2012 ended posting stronger unit sales than those of the prior year.  This marks nine of the last ten months where sales increased over the prior year.   This is a trend I anticipate will continue well into 2013.

Key Points in Gig Harbor and KP Market:

-        Inventory of Active listings down 9.46% to 496

-        Pending Sales down 9.62% to 190

-        12 month absorption rate at 5.1 months (down from 5.6 from last month)

-        Average Days on Market (DOM) down 16.5% to 86 days from Nov (down 14% from 12/2011)

-        Average DOM for current Active listings up 3.59% to 161 days

-        Sold Median Price fell 3.04% to $312,685 but increased 12.07% from 12/2011

-        Sold Average Price increased 6.64% to $416,393 and 11.81% from 12/2011

-        With 58% of sales, the most active price range remains between $200,000 and $450,000

Looking forward to January there are currently 190 total Pending sales with 98 Owner Occupied, 15 are Bank Owned and 77 as Short Sales.  Looking towards January, I anticipate total sales will take a minor fall to the near 70’s with the Median price relatively the same and a decrease in the Average price.

Gig Harbor Market J

Gig Harbor posted a fair rebound from a lackluster November with 56 closed sales, posting a 3.7% increase and continuing the trend of increased monthly sales over the same period of 2011.  Overall prices showed some minor increases but mixed results by sales type (owner occupied, bank owned and short sales)

Key Points in Gig Harbor Market:

-        Inventory of Active listings down 9.56% to 331

-        Pending Sales down 11.95% to 149

-        12 month absorption rate decreased to 4.8 months

-        Average Days on Market (DOM) down 6.8% to 96 days

-        Average DOM for current Active declined by .58% to 172 days

-        Sold Median Price increased 3.09% to $358,225 from 11/12 and 2.35% from 12/2011

-        Sold Average Price increased 5.51% to $469,482 from 11/12 and 7.76% from 12 /2011

-        Controlling over 62% of sales, the most active price range remaine3d between $200,000 and $450,000

-        Nearly 27% of homes sold were priced over $500,000

Of the 155 Pending sales 98 are Owner Occupied, 10 are Bank Owned and 47 as Short Sales.  Considering these, I anticipate January sales will decline from December and post a total in the lower fifties, but will continue the trend of increased numbers as compared with 2011 monthly sales, but will post slightly lower average and median prices.

Key Peninsula Market J

December posted some great recovery numbers for the KP reversing many of the negative numbers from a depressed November.  The overall numbers were fed strongly by a dramatic increase in Owner Occupied home sale prices where both average and median prices increased by over 81% and 60% respectively.  These were fueled by increased sales priced over 350K and up to higher $900K mark (a range that has been slight, if at all, in many prior months).  I hope that this becomes a trend and buyers continue to explore the natural beauty of the KP and see it as a desirable destination over a commute.

Key Points in the KP Market:

-        Inventory of Active listings down 9.8% to 138

-        Pending Sales down 1.96% to 50 (ok, that’s only one less than last month)

-        12 month absorption rate at 6.0 months

-        Average Days on Market (DOM) down 43.14% to 58 days (Price it right and it’ll sell fast)

-        Average DOM for current Active listings down 11.76% to 135 days

-        Sold Median Price increased 31.67% to $217,250 from 11/12 and 19.04% from 12/2011

-        Sold Average Price increased 48.49% to $267,743 from 11/12 and 43.44% from 12/2011

-        With 45% of sales, the most active price range increased to $180,000 and $350,000

Looking forward to next month’s sales, of the 50 Pending sales 20 are owner occupied, 7 are Bank Owned and 23 Short Sale.  From these I anticipate that we will start off the New Year with closed sales equaling December’s with a modest decline in prices to the lower and mid $200K’s.  

And in closing . . .

Gig Harbor and the KP ended 2012 with some great numbers and it appears that we are trending up with the beginning of 2013 showing continued growth.  With the continuing decline in active listings and increased buyer demand we are starting to see prices actually inch upwards in many areas. With affordable prices and interest rates for buyers, and rapid sales for sellers, we are currently in a market that benefits both, or a Balanced Market.  Many potential sellers fear selling at a time with such affordable prices, but if planning to make a subsequent purchase it could not be a better time  . . .  sell in a lower market and buy for less, sell in a higher market and subsequently pay more for a new home.  Even if these incredible interest rates remain, waiting to sell and buy when prices increase would only increase monthly payment amounts, which could cost more in the long run.

This is a time of great opportunities in real estate for you primary residence, second home or investment properties.  If you’ve been considering making a move, don’t miss out.  Give me a call to discuss if the market is right for you.