Key Peninsula home prices are on a roller coaster
Key Peninsula home prices are higher one month and lower the next, compared to 2008. While sales prices were lower in December they followed three months of higher prices.
Key Peninsula home prices are down 10% from 2008 and 14% from 2007. That compares to Gig Harbor that bumped up 1% over 2008 and the 4-county Puget Sound area that dropped 7% decrease in prices.
On the other hand, sales of Key Peninsula homes have been showing a tidy increase, with 33% over 2008 and 29% from 2007 year-over-year. The change from 2008 is on a par with Gig Harbor but sales in Gig Harbor are a whopping 160% better than 2007.
At the same time the 4-county Puget Sound area reported 54.7% more sales than last year so both Gig Harbor and Key Peninsula are some distance behind regional figures for this measure.
Realtors have been pleased with the relatively strong market for December and the momentum appears to be continuing with sales activity in January. Much of those sales are being driven by the first-time home buyer tax credits and low interest rates. Interest rates are starting to tick upward and are expected to peak around 6.5% during 2010.
Inventory continues to drop-down 33% from last year at this time. This is helping stabilize prices as the home supply dwindles. Key Peninsula is currently experiencing just an 8.8 month supply of homes on the market. For the homebuyer, that means if no new homes were listed, it would take about nine months to sell the current inventory. I would expect the supply to drop even more as January sales activity continues to hum.
Carole Holmaas is an Associate Broker at Windermere Real Estate/Gig Harbor, licensed since 1967. She may be reached at 253.549.66 or Carole@ISellGigHarbor.com. Her blog may be followed at http://blog.ISellGigHarbor.com