Gig Harbor home sales start to equalize in Key Peninsula

Gig Harbor home sales start to equalize in Key Peninsula

A snapshot of Gig Harbor home sales shows a nearly balanced market for Key Peninsula mailing addresses. Zip codes 98329 and 98394(Wauna, Vaughn and Key Center) have just slightly more than a seven month supply of homes in inventory.

A balanced-or neutral market-is generally considered six to seven month home inventory, based on number of sales in that month. When the number drops below six months it generally becomes a seller's market.

6.3 months of inventory was normal in this area during the strong sales years of 2002-2007 so the current seven months supply is a very strong number. A high of 40 months was reached last January.

Median prices are still dropping-over 10% in third quarter compared to the same period last year, with 15 closings-a high percentage of "bank-involved" sales pulling prices down. A perspective on prices over the past few years--the current median sales price--$209,000--equals first quarter 2005 when homes were selling for 99% of listed price.

The median price will only increase when buyers have an appetite for something other than foreclosures and short sales and when consumer confidence is restored. Unfortunately, locally there are still many foreclosures in the pipeline.

The zip codes of 98349 and 98351 (Longbranch, Lakebay and Home) have only an 8.9 month inventory of homes, based on the sales pace in September. This is looking positive for an area that experienced a 6.9 month supply of homes during the boom years of 2002-2005 but has been running double digits and a high of 49 months supply last November.

The median sales price is down for third quarter by 15.4% representing 10 sales. In this area the median price has been "reset" to prices established the first nine months of 2005 when homes were selling for 98.5% of listed price.  

This table shows Key Peninsula zip codes 98329/98394 and 98349/98351 for Gig Harbor home sales for September 2009 and 2008.                                             

Readers must be careful not to read too much into a single month comparison but these figures are encouraging to local Realtors. The 17-month graphs below show the bigger picture in Gig Harbor home sales in these zip codes. With the median price hovering at and below $200,000, homes in these areas have been snapped up by first-time buyers as they receive the $8000 tax credit. This tax credit is expected to be extended. Month-to-month figures will continue to fluctuate as the market continues to stabilize. And expect inventory to climb as winter takes it toll on sales

   98349 and 98351

 98329 and 98394

Throughout the entire Gig Harbor and Key Peninsula market area, sales for October are on track to close higher numbers than last year. Several price ranges are showing the first signs of strength in a year, namely in the low $500's and the mid $400's and $600's.

Carole Holmaas is an Associate Broker at Windermere Real Estate, licensed since 1967. She may be reached at Carole@ISellGigHarbor.com or 253.549.6611. Her real estate blog may be read at http://blog.ISellGigHarbor.com