Gig Harbor Real Estate Weekly Report
I wanted to take a look at year vs. year home sales in Gig Harbor for this week’s report. We hear of so many different statistics being thrown around regarding the real estate market, but rarely is there any practical applications for the statistics. The chart below shows YTD statistics for 2008, 2007, and 2006, respectively. All three years are January 1st-February 25th of the respective years.
Two of the most glaring numbers I see are # of homes sold and the comparison of List $ to SOLD price. In ‘08, you can see we’ve sold less than 1/2 of what sold in ‘07 during the same time frame, and less still than in ‘06. The other glaring number is the discrepancy between what sellers were asking and what they were getting. You can see in ‘06, the median SOLD price was 100% of the median asking price, versus 92% in ‘08.
When I look at these numbers as a seller, I’m not overly optimistic. HOWEVER, I believe it should be remembered that the average US homeowner owns their home for 5-7 years. So, looking at the same time period in 2002, we see that Gig Harbor sold 79 homes at a median price of $220,000 (average price of $215,000)! While it’s true that prices for Jan/Feb have dipped the past 2 years, they’ve still more than doubled since 2002! Would I recommend selling now if it was just a fancy and you were wanting to test the market? No. I don’t think this is your best time. If you are ready to sell (moving, need to downsize, having a baby and need more room) then know that you CAN sell your home in this market…BUT it must be in top condition, priced REALISTICALLY for today’s market, and marketed aggressively (click on the photo below). A sign in the yard and a photo or two on the MLS won’t cut it.
So, why if the prices are dropping do people keep saying it’s a bad time to buy, also? Those voices are generally the ones trying to time the market. Have we seen the slowest point? I don’t think so. I think all of ‘08 and possibly into ‘09 we’ll see this dragging market. So if you’re looking to simply invest in real estate and snatch up properties, is now the time? Probably not. But if you’re ready to move (being relocated to Gig Harbor, need more space, tired of renting), it’s a great time to buy. Less than 1/2 the homes are selling than in past years, our inventory is higher than it’s been in years, sellers are clearly taking less than what they’re asking…so remind me again why buying now is a bad idea if you’re ready? As a buyer, make sure you are well represented. Find out what homes are actually selling for, don’t be afraid to ask for repairs if the home needs them, request that the sellers pay your closing costs…buy the home on your terms.One thing that many people forget about buying a home is that there are people involved, not just properties. “Low balling” a seller isn’t something I practice. “Price Puffing” is also something I want my sellers to avoid. I’ve been called “nothing more than a used car salesman” more than once, which is fine with me because one of the men I respect the most in this world is the son of a used car salesman. He was a man of integrity and knew that he wasn’t just selling machinery, but that people were involved, too. You can be a salesman, car or home or otherwise, and still operate with integrity, treating people fairly and making sure that both parties involved feel good about the deal. When I sell a house, regardless of whether I’m representing the buyer or the seller, I like to pretend that the offer is laid on the table on a Lazy Susan. If the table was spun and all of the sudden I found myself on the other side, would I still be happy? If so, it’s a great deal; if not, let’s try to keep working!
If you’re needing to sell or wanting to buy a home in Gig Harbor or the surrounding area, please give me a call and find out just how easy of a transaction it can be.
February 25th, 2008 at 9:23 pm
can i ask something? how come SO many people are putting their homes on the market, if it’s probably a sure thing that they won’t get a great price for it? i am seeing for sale signs everywhere, and it makes me wonder… why? (is that a dumb question?)
btw, i recieved my gift certificate. thank you so much!
February 25th, 2008 at 9:47 pm
Not a dumb question at all. There are a ton of homes coming on the market (about 25 per week in Gig Harbor), and those people all have varying reasons as to why they are selling. Those can range from job change, divorce, new baby, taxes getting too high, struggling with loan payments, and many more.
The reality is, they can still get a great price for their home IF IF IF they price it well to begin with. Remember, most people who are selling now will have owned their homes for at least 5 years, and their value could have easily doubled or more in that time. Folks who have owned their homes for 2 years or less are the only ones who will really be hurt by selling.
Try the Choc-Peanutbutter-Banana yogachinno if you get a chance…GREAT stuff!
February 26th, 2008 at 10:37 am
i see. that makes sense! thanks for replying, and thanks for the recommendation… sounds yummy! i’ve never been to Kimballs, and am looking forward to trying it out
February 27th, 2008 at 11:33 am
What about my gift certificate? How do you earn one?
February 27th, 2008 at 12:54 pm
In my post with the video on “Community,” I asked what statement that Mike Bastian made struck me as most profound. I offered the first correct response a gift card to Kimball’s Espresso. Keep watching closely, I’ll do it again from time to time!