Home Sales in the Sequim Area*:
Overall the 4th quarter and 2011 as a whole saw drops in the number of home sales and median price. We saw some signs of life from the upper end of the real estate market in 2011, while seeing an extreme increase in the portion of the market taken up by distressed sales, mostly in the lower and middle sections of the market. It seems as though a painful, yet necessary cleaning out of the distressed sales is occurring which we feel had to happen before we could hope to return to a balanced real estate market.
Median sales price- trending down but largely due to the distressed sales.
The median price of home selling in Sequim fell 9.5% going from $230K in 2010 to $210K in 2011. With the number of distressed sales increasing so dramatically (we’ll get to those numbers later) this is no surprise.
Number of Sales – down again slightly, but an interesting trend down as far as the number of Active homes on the market.
There were 95 home sales in the 4th quarter which was an 8.4% drop compared to the 4th quarter of 2010. Overall in 2011 there were 341 homes sales, down 11.1% from 2010. Interestingly the number of homes on the market actually dropped this year compared to 2010. On average there were 455 homes on the market at the end of each month in 2011, compared to 498 homes on the market at the end of each month in 2010. This is a good sign that we could be working through our inventory.
Number of Distressed Home Sales – 2011 saw 81 homes classified as “distressed sales” compared to 41 in 2010!
That is obviously a 98% increase year over year but even more daunting is when you consider that in 2010 they made up only 11% of the overall sales whereas in 2011 they made up 24% of the sales – an increase of 118%! We point to that increase as a major factor in our median sale price drop and as a painful step towards our market’s recovery. (Distressed sales are made up of short sales, foreclosures and bank-owned repo sales.)
Team McAleer’s 2012 Real Estate Forecast- Please don’t share this valuable information!
We have no idea. The real estate forecasting business is for wizards and people who like to guess. What we can point to is the necessary process of selling off distressed homes, 30 year-fixed interest rates at 3.87% currently, a slight yet encouraging drop in the nation’s unemployment rate and the fact that we live in a beautiful place desired by many. We believe there are more distressed properties that will come on the market affecting values but with that, more buyers who will recognize that there are some great values to be had in Sequim.
*Sequim Area is defined as the Sequim School District Boundaries stretching east to the Jefferson County line and west to Blue Mountain Road and Lewis Road.
Courtesy of Team McAleer @ RE/MAX Fifth Avenue in Sequim, WA