Boston Harbor Market Update for October 2013

Here is the Boston Harbor Market Update for October 2013 (area 445 on the map below).

Boston Harbor is a desirable area of Thurston County and offers residents lots of waterfront activities including Priest Point Park and Boston Harbor Marina as well as a direct route to downtown Olympia.  Most residents are in the Olympia School District and the North Thurston School District.  Boston Harbor has a mix of waterfront homes and condos, mid-century and vintage homes.

Market Snapshot:   

Average home prices for Boston Harbor are up slightly - 1.3% - from last year at this time.  Thurston County overall has seen incremental home sales price increases (2.6% last month).  Thurston County's average home price is currently $238,799, whereas the average sales price in Boston Harbor is much higher at $350,152.

The number of homes sold is stable for Boston Harbor.  Slow and steady wins the game!  Buyers are coming back and sellers are pricing appropriately and accordingly with the market.

The absorption rate has also remained stable and steady, and is on the cusp of improving over the next several months.  (A balanced market is if all the inventory sold in 4-6 months; a seller's market is anything less than 4 months; a buyer's market is anything over 6 months.)  The average absorption rate for Thurston County is 5 months.

What does this mean for Sellers?

The bottom has hit and we are moving passed the lowest point of the market.  This doesn't mean prices will skyrocket upward.  The market still has many months of recovery but the downward spiral has stopped.

Sellers still need to price appropriately with the market.  No matter if it's a "hot" seller's market or a slow buyer's market, sellers still need to price right according to the conditions of the market in order to have a successful sale.

Less inventory.  This is good for sellers as there is less for buyers to choose, and we have seen multiple offer situations with several buyers competing for the same property.

Overall, it's been a long time coming, but the market has improved enough for many sellers to consider their next move.

What does this mean for Buyers?

Buyers need to act - no more fence-sitting.  The luxury of waiting and watching the market are over for buyers.  With less inventory and more buyers entering the market, buyers may find themselves competing for a property.

Pay attention to where interest rates are heading.  Even though interest rates below 6% are considered very low, many buyers over the last five years have enjoyed rates at half that - 3% to 4%.  At some point, interest rates will need to rise.  Buyers will need to stay on top of where interest rates are heading.

Be prepared.  Buyers need to be prepared financially to purchase a property.  That means working with a quality local lender and getting pre-approved so that you are ready to make an offer when you find the right house.  Secondly, buyers need to be prepared that a seller may not agree to pay a buyer's closing costs.

Here are the homes that have sold within the last 3 months:

   See all the homes currently listed for sale in 445 Boston Harbor.

Local statistics compiled by Francine Viola from NWMLS data. Statistics not compiled or published by  NWMLS (Northwest Multiple Listing Service).

Originally posted and written by Francine Viola at www.InTuneRealEstate.com.