Residential Report – Home Sales in the Sequim Area*
There were an average of 47 home sales/month over the first quarter of 2016. The 141 home sales was the most ever for a first quarter in Sequim.
*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.
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 is very telling. Our inventory was down 16% compared to Q1 of 2015 and was the lowest for a first quarter since 2005.
An interesting note regarding the current inventory – as of the date of this report, there are 274 homes on the market in Sequim with a median asking price of $329K. Currently, 43% of the homes for sale under the $329K median asking price are under contract or are pending sales whereas 25% of the homes listed above $329K are under contract or pending.
Median Price – The median price rose to $270K. That is the highest median sale price in 30 quarters going all the way back to Q3 of 2008. The median sale profile looked as follows: asking price of $275K, 1850 SF on 0.67 acres, built in 1992, on the market for 56 days, sold at $146/SF and at 98% of the last asking price.
Housing Outlook: We expect these high sales volumes and price increases to continue, considering a home buyer with good credit can get a 30 year fixed mortgage today at a ridiculously low 3.88%. Also, the price of a home here is a fraction of what people are paying for homes in Seattle and our other feeder markets. Of course, there are high paying jobs in those areas whereas Sequim still relies on people making money elsewhere before moving to Sequim where they then get to enjoy world class views, fresh air, low traffic, and a pristine national park in their backyard.
Volume and Median Sales Price: The median price for land fell slightly to $76K. There were 38 land sales in the first quarter and there are 402 parcels currently listed in the MLS. Only 4 of the 38 sales were in the city of Sequim, the rest were in the county. The median days on market for those 38 sales was 259 days.
Inventory: Inventory is down to 402 parcels on the market. The current median asking price is $79K and the days on market for the active inventory currently sits at 332 days.