Gig Harbor Home Sales
Last week I wrote an article about the positives of the Gig Harbor real estate market, focusing on the decreasing days on market. In yesterday’s Tacoma News Tribune real estate blog, the broker from a local real estate company was quoted as saying, “If you’re going to sell a house in the Harbor, you’re going to have to be priced under $400,000.” His comment was in context of the huge inventory of homes that we have on the market right now. His inventory numbers are correct, his assessment of our market isn’t.
The following two charts show home sales from June 1, ‘08-present. The first chart is Gig Harbor and the Key Peninsula. The second chart is just Gig Harbor (zip codes 98335, 98332, and 98333 [Fox Island]). I included the first chart because I believe those are the numbers this broker was referring to. I included the second chart because I’ve found that when people tell me they are moving to Gig Harbor, they generally don’t mean Key Peninsula. KPN is a VERY different real estate market than Gig Harbor, although it has a Gig Harbor address.
52% of the homes that have sold in Gig Harbor and the Key Peninsula in the past 2 1/2 months are under $400,000. Only 37% of the homes currently listed are under $400,000.
Looking at just Gig Harbor (98335, 98332, 98333), that number drops to 40% of the home sales are below $400,000. 23% of the homes listed are below $400,000.
To make a claim that only homes under $400,000 will sell in Gig Harbor when 60% of the home sales are OVER $400,000 is simply wrong. Notice that homes in the $600k-$700k price range have the lowest days on market!
Positive thinking matters. Being realistic is great. I’m not advocating sugar coating or deception. I’m simply advocating positive thinking.
Let me illustrate with 2 quick examples. Your pregnant wife enters the hospital with severe pains. Doctor 1 tells you, “Mr. Jones, your wife has developed a very rare disorder and must deliver immediately to possibly save her life and hopefully the baby’s life.” Doctor 2 tells you, “Mr. Jones, your wife has developed a very rare disorder. We’re going to deliver her now. Fortunately, we’ve got a great staff and we’ve done this several times.” Or try this one…economy’s got you down and you’re trying to find a way to keep your house. Lender 1 tells you, “Mr. Jones, your income is just too low. You’re just not making enough money.” Lender 2 tells you, “Mr. Jones, I can see that your income has dropped and that’s making things difficult. Let’s look at the different options that are out there and see if we can find one that works.” Both doctors and both lenders are being realistic and telling the truth. Doctor and lender 2 are being positive, which I’d prefer.
Inventories are high. The real estate market has shifted. THAT’S OKAY! It needed to shift. Things had gotten out of control. There are great opportunities for home buyers all around Gig Harbor. Home sellers who price their homes well and have them ready to show will get their homes sold. Look at the actual numbers.
I don’t believe in wearing rose colored glasses. I don’t believe in wearing dark, smudgy glasses either. Positive thinking matters.
