Residential Report – Home Sales in the Sequim Area*
Median Price – 2012 will likely be the year we look back at our data and call it the “rebound year” for home sales. The 2012 median price rose 9% from last year to $220K boosted by a December finish that posted a median sale price of $250K – the highest median price for a month in over 2 years.
Number of Sales – The 385 home sales in 2012 was an increase of 11% over the volume from 2011. The volume of sales was the highest, although just barely, since 2007.
Although we continue to track the data quarterly and even monthly, the chart below gives you the most clear sense for where we’ve been and the beginning of something positive from our 2012 numbers:
Number of Distressed Home Sales – 2012 saw a much less significant impact on our overall market by distressed sales. 16% of our sales were foreclosures, which is a vast improvement from 2011 when 24% of our home sales fell under the distressed sale category. (Distressed sales are made up of short sales, foreclosures and bank-owned repo sales.)
Team McAleer’s 2013 Real Estate Forecast
Besides our own local data showing what looks like a real turnaround, there are now reports nationwide that we have in fact made it through the worst. Nationwide home equity rose 20% over a 9 month period from $6.45 trillion to $7.71 trillion – that is significant as those home owners are our future buyers. Interest rates for a conventional 30 year fixed mortgage are at 3.75%. We continue to live in a beautiful place and our mild climate and seemingly lack of natural disasters (knock, knock) will bring more people our way.
Our land market is another story however…
Land Report – the laws of supply and demand continue to work against us.
Number of total land sales and median price – 2012 saw a 23% jump in the volume of sales as 119 land sales were closed. What was most interesting as illustrated in the chart below, the median price fell sharply to $60K from the previous year’s median price of $74K. Normally with a higher sales volume we see an increase in the median price but there are other factors at work here. The biggest drag on land values is the incredible inventory. We continue to sell just under 10 parcels/month yet there are just under 500 parcels to choose from in any given month. That does not include a “shadow” market of withdrawn listings, expired listings, and those sellers simply waiting for things to turn around.
The median asking price for land has fallen to $90K which is the first year it’s been below $100K since 2004. That fall in the median asking price is very likely the biggest factor for the increase in sales volume.
Adoption of restrictions on individual wells handed down 1/1/13 may have an impact on what a buyer is willing to pay for some parcels of land. We will be able to determine that impact after studying buyer preferences in the coming year.