The sales volume for homes is very high including a record number of homes sold in September. The median price held at $231K, but inventories are down to a 9 year low! Raw land is showing some signs of life – hopefully next year we see some sort of meaningful turn around there.
After 31 years in the Army and 23 years a Realtor, Mike Sr. has spent the past few months in his new Mercedes RV driving around the country with my mom, Lynn. The photos of them driving around the country visiting old friends and family have been fantastic including a few shots of my dad washing and waxing his new rig in some poor hosts driveway. They are in D.C. now to cheer on family members running the Marine Corp Marathon and to celebrate the birth of their 13th grandchild.
Let me know if you have any questions regarding the quarterly report or if we can help you in any way. Enjoy the Fall!
Residential Report – Home Sales in the Sequim Area*
Median Price – The median price for the 3rd quarter held at $231K. The average price however was up to $273K. September in particular, with a huge sample size of 64 home sales, saw significant gains with a median sale price of $267K. Homes sold on average at 96% of the last asking price this past quarter.
Home Sales over $500K – 10 homes sold for more than $500K in the third quarter. That makes 36 sales over $500K this year! I was happy to have represented 3 of the buyers and 3 of the sellers of those 10 sales this past quarter and 15 of the sides from the 36 sales above $500K over the entire year. We’ve been busy – just the way we like it.
Number of Sales – The sales volume is now at a record pace. There were 186 home sales in the 3rd Quarter. That was just one home sale shy of the all-time record of 187 home sales from Q3 of 2004. Further, the 64 home sales in September was the most EVER in a September. Being that the median price of those 64 sales was all of the way up to $267K, we are obviously feeling positive about our local market going forward.
The percentage of the market that fell into the “distressed sale” category continued to fall, down in the 3rd quarter to 9% of the overall market. Compare that to the scary 41% of the market comprised of distressed properties in Q1 of 2011 and you really begin to appreciate how far we’ve come.
(Foreclosure sales, bank owned properties and short sales are all considered “distressed sales”.)
We check the number of homes on the market at the beginning of each month. Traditionally, there are more homes on the market in the 2nd and 3rd quarters so comparing similar quarters in different years is the best indicator for inventory trends.
The housing inventory in Sequim has fallen sharply. The 428 homes on the market on average to begin a month was the lowest for a 3rd quarter since 2005. There were only 388 homes on the market to begin September. For perspective, consider the fact that there were 589 homes on the market to begin September of 2010 and 611 on the market June of 2009. If you’re a property owner in Sequim, read this paragraph again. It feels good.
Volume and Median Sales Price: The median price for land rose slightly to $75K. There were 39 land sales which is not great, but much better than the dry spell between 2008 and 2012. 25 of those 39 land sales were over one acre.
Inventory: Inventory fell to an average of 477 on the market to begin each month this past quarter – that is the lowest average in a 3rd quarter since 2006. That is certainly encouraging. We believe that as the home prices rise, consumers will eventually consider buying raw land and building – something our local builders have been waiting on for far too long.