Gig Harbor & Key Peninsula Closed Home Sales Report for March 2013

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.

Another driving force in the resurgence of buyers is the stability of the market and reports show that on a national level home prices are predicted to increase over 3% this year and continue to rise for the next few years.  Click here for detail and informationon National home prices presented by RISMedia.

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.