Gig Harbor Undressed

Final Community Classes of the summer

The Gig Harbor Police Dept and Gig Harbor Community Empowerment group will be hosting their final classes of the summer on Monday, August 18th.  The teen class will be from 10am-11am, with a free lunch to follow, focusing on school safety.  The parent class will be from 6-8pm, and it is a breakdown of all of this summer’s classes (school safety, internet safety, and drug and alcohol awareness).  It’s a pretty cool thing that our community offers these classes.  If you are a parent or guardian of a teen or any school-aged child in Gig Harbor, I’d encourage you to attend.  Contact myself or the contact info on the flier below if you’d like more information.

Gig Harbor kids (and adults) enjoy the animals

Believer’s Fellowship in Gig Harbor hosted their annual Animal Fair Thursday evening.  Geared for kids pre-school through 3rd grade, it’s always a hit with babies (our 10-month old got to pet her first cow) through adults (there were some retired folks with painted faces playing with the water toys).  Although temps hit 90, the shaded lot and the ample water play made for happy kids, parents, and animals.  Here are some photos of the temporary Gig Harbor “zoo.”

For many kids, this is their first and only chance to ride a horse!

This guy actually climbed up the ladder, ran along the beam, and jumped down on the other side!  Amazing!

She also made the kids pretty happy!

Water bucket racing was a hit with the kids.

Come out next year and join us!

Gig Harbor Back to School HOME Sale!

There are lots of open houses in Gig Harbor this weekend (I’ll be holding one in my favorite neighborhood of Millbrooke Saturday from 2-4pm).  Keller Williams Realty is holding their inaugural Back to School HOME sale, featuring 16 Gig Harbor homes for sale at discounts up to $100,000!  Many of our sellers have agreed to cut their prices for this weekend only.  We don’t want to rush anybody, so any potential home buyers who visit any of our open houses this weekend or swing by the Keller Williams Gig Harbor office can pick up a coupon that allows them to buy the home at the discounted price for up to two weeks from this weekend. 

Consider this Keller Williams’ economic stimulus package to Gig Harbor home buyers!  Inman News has tagged Keller Williams as the nation’s most innovative real estate company, and this sale is just another example of how we do things differently!  For a complete list of open houses in Gig Harbor click here.   To see the 6 sale properties that will not be open this weekend, please give me a call.

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.

Bring your kids to the Gig Harbor Zoo!

Okay, there really isn’t a zoo in Gig Harbor, but for one night only your kids will think there is!  This Thursday evening (August 14th) from 6-8pm at Believer’s Fellowship Church on Hunt St in Gig Harbor, animals of all sorts will be on display.

The annual Believer’s Fellowship Animal Fair is a great time for kids pre-school through 2nd grade.  We’ll have horse back rides, a cow, Alpacas, and many other fun animals, as well as games, crafts and a hot dog BBQ dinner.  Kids are free, adults are asked for $1 if they eat dinner, free if they just enjoy the animals. 

If you are in the Gig Harbor area and have young kids who love animals, swing on by Thursday night and join us for some fun.  If you need more info or directions, give me a call.

This guy is from NW Trek, not our Animal Fair, but it was the only photo of a fun animal I had.

Safety forum for Gig Harbor’s Kids

If you’re a parent (or grandparent, or guardian) of kids and you live in Gig Harbor or the Key Peninsula, here is something that should interest you.  Safe St organized the Peninsula Prevention Forum, a chance for Gig Harbor residents and their children to talk about substance abuse among Gig Harbor’s youth.  There’s no question that Gig Harbor is a great place to raise a family, and for the most part Gig Harbor’s kids are a great group, but like anywhere drug and alcohol can be problematic.  This forum will be a great place to get together and share ideas.  Feel free to contact me or visit Safe St’s website for more information.  The forum will take place Tuesday, August 12th from 6-8pm at PHS. 

Canterwood Blvd Closes

Oh NO!  Canterwood Blvd is going to be closed…for a while.  In order to get the roads ready for the new Franciscan Hospital (set to open in March), they have decided to shut down Canterwood Blvd from the Burnham round about past the hospital.  What that means is that A LOT of traffic that is accustomed to driving along Canterwood Blvd will now be either re-directed through town and along Peacock Hill, or down through the already backed up Purdy off-ramp.

Be patient!

Mr Bill photo courtesy of Jahdakine on Flickr.

What is home equity?

I read an interesting post on another real estate blog this morning.  A guy whom I usually don’t agree with made a comment that too many people place monetary value in their home’s equity.  I agree.  It doesn’t take much searching to find talk about how home prices have plummeted, but I wonder if people really get what that means.

Sure, if you bought a home in the past 2 years and are being forced to sell now, home depreciation hurts.  I don’t want to discount that.  How many of you have lived in your home for less than 2 years and are thinking of selling?  Not many is my guess.  Let me review home equity from a different standpoint, using real numbers as examples.

I randomly picked 2 houses that sold in the past month here in Gig Harbor and looked at their sales history on the County Tax Assessor’s site.  Home #1 was purchased in September of 2005 in a nice neighborhood in South Gig Harbor.  They bought the home for $411,000.  They then listed their home for sale for $550,000, and it eventually sold in July ‘08 for $512,500.  Home #2 is another home in a nice neighborhood in central Gig Harbor.  It was purchased in November of ‘00 for $255,000, listed for sale for $455,000 and eventually sold in August of ‘08 for $417,000.

My question regarding equity is this.  Did the first home lose $37,500 or did it gain $111,500?  Did the second home lose $38,000 or did it gain $162,000?  In the case of home #1, their house gained $111,500 in 2 years, 10 months!  Is that bad because it sold for $37,000 less than they thought it would have?  Home #2 gained $162,000 in 7 years, 8 months!  Isn’t that a good thing?  Home #1 gained over $37k per year, home #2 gained over $20k per year. 

Yes, there are things such as home maintenance, mortgage, and other expenses that I’m not able to put a price on, but I do know this.  Had those folks been renting, their landlord would not have paid them over $100,000 as a parting gift for moving out.  They would have paid their rent, some upkeep costs, and left with nothing.

I know the housing market has slowed.  It had to.  Homes weren’t affordable anymore.  I still contend that it’s a GOOD thing that our market is correcting.  I know that it’s not good if you bought recently and are being forced to move, and I’m sorry for those circumstances.  But those few folks don’t override the millions of others who have built strong equity in their homes while making memories in them as well.  A few unfortunate cases don’t create a national crisis.  None of this overshadows the fact that home ownership is becoming affordable again for the average folks.  Those are GOOD things. 

Investors are using this market to increase their wealth.  Astute buyers are using this market to move up into homes that they previously couldn’t afford.  Sharp first-time buyers are using this market to get out of a rental and into their own home.  What are you doing in this market?  Is it hurting you, helping you, or are you indifferent?

Photos courtesy of Evaonne Hendricks, John Baeyens, and Cupcakes for clara on Flickr.

Open houses in Gig Harbor & Fox Island

Light load of open houses this weekend in Gig Harbor and Fox Island.  Only 8 of them.  Keller Williams Realty is gearing up for the first ever “Back to School Home Sale” next weekend!  Many of our sellers have agreed to significant price reductions for 2 days only!  August 16th and 17th several homes listed with Keller Williams Realty Gig Harbor will be “on sale.”  The homes will be open for viewing, and most agents will have coupons that will allow buyers to get the sale price for up to 2 weeks after the event if they attend the open house (we realize that buying a home is a big decision not to be entered into lightly, so we’re not trying to rush anyone.  Our sellers, however, are making HUGE concessions to hold this sale, so we want to reward them with quick sales). 

Click here for an interactive map of this weekend’s open houses.  For a list of the Keller Williams houses that will be on sale next weekend, you can swing by our office, pick up a copy of next Wednesday’s Peninsula Gateway, or email me and I’ll get you the list.

**Open house information is from the NWMLS and is reliable but not guaranteed.  Photograph has nothing to do with open houses or houses at all.  They are sail boat masts, so I guess somebody could live on a sail boat making it somewhat like a house.  I took the shot last week in Gig Harbor and thought it was pretty.  My thoughts are necessarily the thoughts of Gig Harbor Undressed, as I’m the only author for Gig Harbor Undressed. 

Gig Harbor homes selling quickly

 I read a lot of news pertaining to real estate.  I spend more time than I care to admit scanning real estate blogs and articles online.  I recently found a blog written by another Gig Harbor real estate agent that seems to be nothing but bad news.  She’s not alone…a majority of the blogs I read tend to be bad news.  Nothing false, nothing made up, no distorted facts, but nothing positive either.  True,  July wasn’t a great month for home sales in Gig Harbor. 

But I want to keep this website focused on the good, so I’ll say this:  Buyers have a great inventory of homes to choose from, and a pretty good bargaining chip.  I’ll also throw this in:  Sellers who chose to price their homes well sold their homes quickly this past month, with the average Days On Market being only 55 days.  In fact, 2 properties sold in less than 25 days in the $750k+ price range!  I’m not looking to put on rose colored glasses, I don’t want to ignore what our economy and housing market are doing, but I do like to find the good in situations, and in this situation it’s not that hard to find some good.

Most great investors make their wealth in markets such as this.  While our media reports nothing but the gloom, investors are out finding opportunities and growing their portfolio.  If you’ve ever wanted to buy some rental properties to help with long term wealth, now’s your chance.  If you’ve got a child heading off to college and the dorm prices make your eyes bug out, look into buying a place near the campus they can rent (I’ll bet you it appreciates in the 4 years your child is there, and their roommates will help pay your mortgage).  If you’ve always wanted to move to Gig Harbor but didn’t think you could afford it, now may be your chance.  Already live in the Harbor but thought a view home or waterfront home would be nice?  Check out some of the opportunities you have now!  If you bought your home more than 3 years ago, chances are you have great equity in the home and will come out just fine selling now.  What sellers may “lose” in today’s market, they can make up for in their next purchase.  I can’t believe a seller will “lose” any money if they’ve owned their home for more than 3 years.

Whether you believe in Karma, The Law of Attraction, or the Biblical principles of whatever is true, noble, right, pure, think about such things, there’s no question that the power of positive thinking is real.  My college track coach used to tell me that your body will follow your mind’s last most dominant thought.  Gary Keller’s (founder of Keller Williams Realty) best selling book focuses on mind-set for the first 170 pages!  It takes practice, but work on your mind-set and find the positive.  Did Gig Harbor’s home sales decrease 50% this month from last?  Yep.  Is that the only story?  Nope.  Use this market to find an opportunity and grasp it!

Click here or on the photo below to view an interactive home sale map, showing the most recent asking price, the sales price, and the total days on market of each of the homes.  If you’d like to keep up with home sales in any local area, sign up for my free SOLD Homes email report found along the right toolbar.

**Information is from the NWMLS and is reliable but not guaranteed.  I know that the picture of the boat has nothing to do with home sales in Gig Harbor, but I think it’s prettier than a picture of a map or even a house.  I took this photo this weekend and wanted to show it off.