Residential Report – Home Sales in the Sequim Area*:
Although slight, the median sale price of homes actually rose slightly comparing Q1 of 2012 to last quarter and Q1 of 2011. That was a bit surprising being as though the volume of sales actually fell and the percentage of distressed sales in the overall market rose again as well.
Median sales price – rises slighty.
The median sale price of a home in Sequim rose 5% from last quarter to $220K the 1st quarter of 2012. That is the highest median price for home sales in Sequim in 5 quarters. Team McAleer did its part in helping get that median sales price up a bit as we were responsible for the two highest priced sales of the quarter and 3 of the 6 highest sales. Go Team.
Number of Sales – second slowest quarter in terms of volume since we began tracking this data.
The first quarter is traditionally the lowest in terms of sales volume, but this quarter was surprisingly low. With only 19 home sales/month, this quarter was second only to the first quarter of 2009 (when it looked like our economy might never recover). This was a bit surprising considering the positive news from other markets around the country and an overall improvement in consumer confidence. Until we looked at the data for this quarter, Team McAleer would have told you “things are great!” but that’s because our business is doing well. We make up two of the 187 Realtors in Sequim and Port Angeles but were responsible for 16% of Sequim’s home sales this quarter. Go Team again.
Portion of the market taken up by Distressed Sales – slightly up again.
14 of the 56 sales this past quarter were classified as “distressed sales”. That is a slight increase from the 24% clip we saw all of last year, but is frankly less than we expected going into this year. Bank of America has yet to put their back log of bank owned properties on the market, and according to the CEO of one of our biggest local banks here on the Peninsula, 60 day delinquencies are peaking in our area right now. That leads us to believe that we are not out of the woods as far as the distressed properties go and they put downward pressure on prices – mostly the properties in the lower price ranges of course. The current 11.1% unemployment rate in Clallam County (well above the state and national rate of 8.2%) won’t help matters either.
LAND REPORT – 1st Quarter of 2012 sees modest increases in volume and sale prices.
Number of total land sales: The 20 land sales this first quarter was up slightly compared to the 15 sales last quarter and the 18 sales in the first quarter of 2011. It will be interesting to see how recent decisions by the city of Sequim and Washington State DOE will affect raw land and existing home values. The city changed their impact and hookup fees for new construction from $6,500 to $22,000. Later this year, the state DOE will impose new rules on NEW wells outside the city limiting the daily use to 350/gallons/day (down from the current 5,000 gallon/day). It’s quite possible that these decisions will increase the value of existing homes while doing serious economic harm to many raw land owners. We’ll have to wait and see how the market reacts.
Median Sales Price of all land sales: The median sales price in Q1 of 2012 was $66K. That is slightly up from the $64K median sales price of the previous quarter but down from the overall 2011 median sale price of $74K. We made the decision to NOT INCLUDE in our data 14 sales in the Diamond Point Beach area that were unbuildable, recreation lots that sold for between $2,200 and $4,000 each. The assessor and/or appraisers may consider them, but we don’t think they are valid sales for the purpose of this analysis.
Median asking price of all Active parcels: What has been a very interesting trend is the drop in the median asking price or raw land. As of 4/1/2012 there were 499 parcels on the market. Of those active listings, the median asking price was down to $90K which is an 18% drop from the median asking price seen in 2011. We expect that price trend to continue as well.
We hope everyone has a great Spring!