Residential Report – Home Sales in the Sequim Area*
Sales Volume– There were 100 home sales in the month of August – that is the highest number of home sales in any month ever in Sequim, besting the previous record of 82 home sales recorded in June of 2015. The flurry of August sales contributed to the record breaking 3rd Quarter sales volume.
Quarterly Sales Volume- The 53 sales in July, 100 in August and 69 in September were enough to make the 3rd Quarter of 2016 the highest in terms of sales volume for any quarter in Sequim. There were 222 total home sales or an average of 74 sales per month.
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. Our housing inventory continued to fall along with the increase in sales volume. 3rd quarter inventory was the lowest for any 3rd quarter since 2005. The 312 average homes on the market was 23% lower than Q3 of 2015.
Median Price – The median price rose to an 8 year high of $276K. The average sale rose from $292K in the 2nd quarter to $312,450 in the 3rd quarter.
3rd Quarter Median Sale Profile – asking price rose $10K to $279,900, 1778 SF on 0.4 acres, built in 1995, on the market for 30 days, sold at $155/SF and at 98% of the last asking price.
Notes regarding the current inventory – as of the date of this report, there are 307 homes on the market in Sequim with a median asking price of $349,900 (almost $20K higher than the median asking price 90 days ago). Of the current inventory, 37% of the homes are either under contract or pending sales. 50% of the homes listed under the median asking price of $349,900 are under contract or pending while 24% of the homes over the median asking price are under contract or pending.
The trend line of “distressed sales” continued to fall. Despite healthy sales volume this past quarter, there were only 6 home sales deemed “distressed”.
(Foreclosure sales, bank owned properties and short sales are all considered “distressed sales”.)
Housing Outlook: We expect these high sales volumes and price increases to continue. Buyers coming from our feeder markets of Seattle and California continue to find the values incredible compared to where they are coming from and the traffic is reportedly lighter here as well. Mortgage interest rates remain incredibly low with the average 30 year mortgage sitting at 3.41%.
Median Sales Price, Volume and Q3 Inventory: The median sale price for land rose slightly to $70K. The inventory fell to an 8 year low and the sales volume remained steady. Local building contractors are very busy with remodels and even new construction presumably for clients who bought their land prior to 2008. Of the 54 land sales last quarter, 11 were in the city of Sequim. The median days on market for these sales was 120 days while the average was 243. The National Association of Home Builders asserts that a consumer will be willing to pay 10% more to buy land, and hire a contractor to get exactly what they want when deciding on building a new home or buying an existing home. We believe our housing prices are rising to a point where the buy land and build option will become very attractive to consumers sooner than later.