2nd Quarter 2015 Sequim Real Estate Report
Residential Report: Home Sales in the Sequim Area*
Number of Sales: Sales volumes increased to record highs. There were 200 home sales over the quarter boosted by a record 82 home sales in June! As you’ll see in the next graph that is the highest in terms of sales volume for any month.
*Sequim area is roughly defined as the Sequim School District boundaries stretching east just past the Jefferson County line and west to Blue Mountain and Lewis Rd., excluding homes on leased land. Information is collected from the Olympic Listing Service database.
Record number of home sales: 82 home sales in June!
Median Price: The median price rose once again to $250K. That is the highest median sale price in 23 quarters going all the way back to Q3 of 2009. The median sale profile looked as follows: asking price of $250K, 1767 SF on 0.40 acres, built in 1990, on the market for 31 days, sold at $146/SF and at 97.7% of the last asking price. The average list price of these sales was $278,612 with an average sale price of $270,157.
Housing Inventory – Like most markets, Sequim’s housing market follows seasonal trends: more inventory and sales in the warmer months and fewer when it gets colder. Because of this we like to compare like quarters in terms of inventory and volume. The low inventory this past quarter was very telling. Our inventory was down 12% compared to Q2 of 2014 and was the lowest for a second quarter since 2005.
The trend line of “distressed sales” continues to fall. There were only 3 distressed sales out of the record breaking 82 home sales in June. The current housing recovery includes more strict guidelines in terms of lending, including some consumer protections that will be in place this fall called TRID (TILA-RESPA Integrated Disclosure). Although TRID may lengthen the time it takes to obtain bank financing, our hope is that it serves to help protect borrowers and keep the trend line of distressed sales pointing downward.
(Foreclosure sales, bank owned properties and short sales are all considered “distressed sales”.)
Housing Outlook: We expect these high sales volumes to level off but for appreciation to continue. The warm weather and beautiful days have made it easy for buyers to want to write offers on homes – hopefully the forest fires in B.C. will be put out so we can get our blue skies back. There has been quite a bit of worry recently in the local real estate community regarding our local school facilities, the future of SARC, and the shortage of physicians. Hopefully there will be enough political will to keep and improve our infrastructure so that buyers continue to see Sequim as a place they’d like to live.
Volume and Median Sales Price: There were 59 land sales in the 2nd Quarter – the highest of any quarter since the 4th quarter of 2005. The median price actually fell to $77K. The median days on market for those sales was 68 days. 10 of the 59 sales were in the City of Sequim, the rest were in the county, where the bulk of our growth continues to occur.
Inventory: Inventory rose to 438 parcels on the market which is just slightly higher than Q2 of 2014. The median days on market for the active inventory currently sits at 356 days. Hopefully the raw land sales volume will keep rising and in turn help our local builders.