Gig Harbor waterfront homes sell at 2005 prices
Gig Harbor waterfront homes sold at a much faster clip this past year but median sales prices compare remarkably close to 2005-no where near the 2006-2007 peak. 2009's price for Key Peninsula and Gig Harbor waterfront homes was $683,000. This closely parallels the decline in sales of all homes in the area
Sales in 2008 were depressingly slow-only 22-the worst year for sales of Gig Harbor waterfront homes for the nearly three decades I've been recording waterfront market statistics. This year's 51 sales are a 128% improvement but it is still the second worse year of the past 15.
The ups and downs in median prices for Gig Harbor waterfront homes over the past six years:
2004 488,000
2005 680,000 40%▲
2006 850,000 25%▲
2007 900,000 6% ▲
2008 800,000 11%▼
2009 683,000 15%▼
Prices have held up the best in the areas close to the city where the median price was $953,000. And prices were nearly as high in Horsehead Bay/Arletta with sales finding a median at $910,000.
|
Location |
On Market |
Pending |
Sold |
Median List Price |
Median Sale Price |
| Gig Harbor |
8 |
2 |
4 |
$1,024,000 |
$953,000 |
| Wauna/Minter |
4 |
0 |
3 |
$515,000 |
$675,000 |
| Rosedale |
4 |
0 |
2 |
$1,373,000 |
$512,000 |
| So Key Peninsula |
12 |
2 |
9 |
$541,000 |
$475,000 |
| Fox Island |
18 |
0 |
9 |
$1,108,000 |
$690,000 |
| Wollochet/Pt Fosdick |
14 |
0 |
12 |
$1,045,000 |
$785,000 |
| Horsehead/Arletta |
31 |
2 |
5 |
$1,295,000 |
$910,000 |
| Gig Harbor North |
2 |
0 |
2 |
$512,000 |
$565,000 |
| No Key Peninsula |
8 |
0 |
5 |
$615,000 |
$417,000 |
|
101 |
6 |
51 |
$985,000 |
$683,000 |
The spread-more than 30%--between the median list and sale prices shows the huge disconnect between the homes currently on the market and the price range buyers are willing to pay to buy waterfront. Four years ago the spread between listings and sales of Gig Harbor waterfront homes was $50-100,000-not $300,000.
Closed homes experienced only four months, on average, of market time while the current inventory is nearing six months of exposure.
Just nine homes closed for over $1m. The most expensive was a Raft Island home with a deep-water dock. Five were purchased by boaters because of the docks, two will be torn down or substantially rebuilt, and three were purchased for second home use.
I anticipate prices to increase very gradually during 2010. But there are no signs that any part of the real estate market will show any but very minor improvement until 2011, and even then not robust growth. There will be a few more sales made and motivated sellers who prepare and price their home for the current market should see offers as some jumbo money becomes available. Several of these Gig Harbor waterfront homes were purchased with cash and I expect cash to remain king this year as well.
Inventory always builds in the spring and sellers should be aware that traditionally the best months for offers for Gig Harbor waterfront homes are March to June. Sellers who truly want to sell need to get the price right for this selling season. Buyers will have a wide selection of homes and can expect to buy at prices they haven't seen for several years.
Carole Holmaas is an Associate Broker at Windermere, licensed since 1967. She may be reached at 253.549.6611 or Carole@ISellGigHarbor.com.
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