The end of March closed the first quarter of 2013 with continued sales
growth. With eleven of the past twelve
months posting greater units sold than the prior year, homes are selling in
less time, many within the first week of listing. This is partly due to the decline in Active
listings (nearly 23% fewer homes currently listed than just six months ago),
and from an amazing affordability level.
As a comparison; remember back in the early 2000’s when prices were
rising and interest rates were in the 6% range?
The average cost of housing then consumed over 21% of the household’s
monthly income. Now fast forward to
today’s home prices and once-in-a-lifetime interest rates, the cost of owning a
home now takes a mere 12% of the household income. This greater
buyer demand and the reduction in Active inventory is quickly turning this into
a sellers’ market.
Now, let’s take a look at our area sales for the month of March 2013:
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.
How can you not smile with the positive activity in our market area?
Average and median prices continue their up one month, down the next activity
but are holding steady overall, with some areas posting slight
appreciation. The Average Days on Market
(DOM) for closed sales fell from the prior month and year to 88 days, or just
under three months. Compared to March of
2012 this decline reflects a reduction of 20% from the date listed to offer
acceptance, or simply put; homes are selling faster!
Key Points in Gig Harbor and KP Market:
-
Closed sales totaled 63, or an increase of 5%
over the prior month and 3.28% over March 2012
-
Inventory of Active listings down 2.94% to 490
-
Pending Sales up 30% to 280
-
12 month absorption rate at 4.8 months (down
from 5.0 from last month)
-
Average Days on Market (DOM) down 16.19% to 88
days from Feb (down 20.72% from March 2012)
-
Average DOM for current Active listings down
10.20% to 132 days
-
Sold Median Price rose 7.60% to $297,795 and
also increased 5.60% from March 2012
-
Sold Average Price decreased 12.90% to $321,628
and 1.85% from March 2012
-
With over 55% of sales, the most active price
range rests between $200,000 and $350,000
Looking into April there are currently 280 total Pending sales with 166
Owner Occupied, 25 Bank Owned and 89 Short Sales. Considering the
increase in Pending sales, I anticipate that we see closed sales increase in
April by nearly 20% and reach a total near 80, if not above, and an increase in
both Median and Average closed sale prices.
Gig Harbor Market K
Gig Harbor posted a fair March with increased closed sales from the prior
month and year, plus a decline in DOM of over 20% also from the same
periods. Seems good, but then prices
stumbled a bit and posted decreases in most sales types in both month and year
comparisons.
Key Points in Gig Harbor Market:
-
Closed sales totaled 48, or an increase of 4.35%
over the prior month and 6.67% over March 2012
-
Inventory of Active listings had a slight
increase of 2.40% to 341
-
Pending Sales posted a strong increase of over
37% to 201
-
12 month absorption rate decreased to 4.5 months
-
Average Days on Market (DOM) down 22.77% to 78
days
-
Average DOM for current Active listings dropped by
10% to 135 days
-
Sold Median Price increased 4.89% to $344,566
but fell 1.51% from March 2012
-
Sold Average Price fell over 16% to $344,566 and
5.68% from March 2012
-
The most active price range fell between
$200,000 and $350,000
Of the 201 Pending sales 133 are Owner Occupied, 9 Bank Owned and 59
Short Sales. From this increase in activity, I anticipate April will post
an increase in total sales nearing 60, with a slight increase in the Median
price with little change in the Average price.
Key Peninsula Market
J
I have to smile with the sales activity on the Key Peninsula. Why? Well, March closed one more sale than
the prior month. And considering the
recent flat-line of sales in other preceding months, as a whole, the KP has
still managed to outpace the prior year in closed sales. While not strong, sales are steady. Owner Occupied sales prices fell from the
prior month, but overall prices posted a nice gain in March, mostly due to
great increases in sales prices of Bank Owned and Short Sales. Although slight, Owner Occupied sales continue
to outpace distressed sales, which was a problem not all that long ago. Days on Market decreasing, Prices trending
upward and an increase in the number of Pending sale all indicate an improving
KP market.
Key Points in the
KP Market:
-
Closed sales totaled 15, one more than the prior
month, and one fewer than March 2012
-
Inventory of Active listings increased by 3.5%
to 148
-
Pending Sales increased sharply ny over 27% to 79
-
12 month absorption rate decreased to 5.8 months
-
Average Days on Market (DOM) down 3.31% to 117
days
-
Average DOM for current Active listings decreased
10% to 125 days
-
Sold Median Price increased nearly 30% to $250,000
and 51.52% from March 2012
-
Sold Average Price increased 8.67% to $248,227
and 11.86% from March 2012
-
With nearly 47% of sales, the most active price
range was between $250,000 and $350,000
Looking forward to next month, of the 79 Pending sales 33 are owner
occupied, 16 are Bank Owned and 230 Short Sale. I anticipate that the KP
will reach into twenty-plus closed sales in April, with a slight decline in
both Median and Average prices.
And in closing . . .
As we head into spring and summer the Gig Harbor and KP market typically
heats up. This should be an interesting
year as interest rates remain low, with low inventory levels and increasing
buyer demand. Buyers are actively
shopping for their new home and prepared to make a quick buying decisions if
the home is priced right and in good condition (hence the decline in the
DOM). Sellers are feeling this change in
the market and are beginning to list with higher prices and are less giving in
negotiations.
This is a time of great opportunities in real estate for a primary
residence, second home or investment properties. I’d appreciate it if 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 all over the country including Alaska and Hawaii, and parts of Canada.
How about an evening out with dinner, some laughs and a glass
of wine or other favorite libation. This Saturday evening the KP Civic Center
will be presenting a full evening with all this and more. The evening begins with door opening at
6:30pm, with a no-host bar, dinner at 7:00 and Comedians starting at 8:00. Tickets and dinner are $20-25, or show only
at $15, available at Blend Wine Shop, Sunnycrest Nursery, Drive Thru Feed or
at the KP Civic Center office. This is an eighteen or over event, so come by
for an entertaining evening and support our KP Civic Center. Additional information is available at www.KPCivicCenter.org,
Facebook.com/KPCCA or by calling 253-884-3456.
Aside from the unsurpassed education and technical innovations provided, another of the many reasons I have chosen to work at
Keller Williams is the generous and supportive culture that exists throughout
the entire company. This is exemplified
in the KW Mission Statement of ‘Careers Worth Having, Businesses Worth Owningand Lives Worth Living’ which truly defines this amazing culture. As the Culture Chair in the Agent Leadership
Council of the Gig Harbor office, Keller Williams RED Day is a day I
look forward to every year. KW RED Day (Renew
– Energize – Donate) is when Keller Williams brokers throughout the country spend
the day contributing in some way to their community. KW Red 2013 will be celebrated on May 9th.
Each KW office throughout the nation determines how they will spend the day. 
This year the Gig Harbor Keller Williams office will erect a courtyard
greenhouse at Purdy Elementary (generously donated by the Purdy PTA). This will be complete with shelving units in
the green house as well as replacing surrounding beds with raised garden
spaces. The greenhouse and raised beds
will provide much needed space to enhance and encourage students’ education in
plants sciences while giving them hands on experience. This is sure to be a fun day with many of the
Gig Harbor KW Brokers volunteering for this project. We have the tools and we aren’t afraid to use
them!
It’s no secret that I love Spring. Longer days with warming temperatures signal an
end to our yearly hibernation and my addiction to gardening kicks into full
gear. The scent of freshly turned soil
as I prepare my gardens for planting and the aroma of a freshly cut lawn are events
I treasure each spring. Other events I try not to miss is touring the SkagitCounty Tulip Festival, followed by a delicious Salmon BBQ put on by the MtVernon Kiwanis Club. If you have not had
the opportunity to witness this spectacular floral event, make a point to visit
this year. Hundreds of acres in the
Skagit Valley are blanketed with a multitude of brightly colored tulips. Touring the Tulip Farms with its dazzling array
of colors is truly amazing and will remain in your memory for years. The Tulip Festival runs through April, but
keep in mind that the tulips bloom on their own schedule. To witness the full
impact of this event, as you plan your trip check to make sure that they are
nearing full bloom. This event does get
a lot of attention and during the height of the festival the roads can be very
busy. Drive carefully with patience and
watch out for bicyclists and pedestrians who are also trying to take in the
beautiful sights. I have toured this
many times on bicycle and can recommend this, but be aware that you may log in
many miles of peddling as the farms are not necessarily close together. Click here for more festival info including tour map, lodging, dining and other areaof interest.
After a full day of touring the participating tulip farms
treat yourself to a delicious Alder Grilled Salmon BBQ sponsored by the Mt.
Vernon Kiwanis Club. Running Saturday, April
6th through Sunday the 28th, This is the 26th
year the Kiwanis Club has been serving a full tantalizing meal, including alder
grilled salmon with baked potato, coleslaw, garlic bread, beverages and ice
cream. Clickhere for directions, hours of operation, and other information on this tasty wayto close a beautiful tour.
