Is the Sequim real estate market now at a bottom?  This is the ultimate question.  Sequim is largely dependent upon markets in California, Arizona, Oregon, and Texas believe it or not.  Are these markets and the national market showing signs of bottoming out?

If anyone needs hard evidence that the real estate market cycle is flattening out and turning around, check out the latest pending home sales index numbers.

On a national basis, the index jumped by 5.3 percent last month. But more importantly, it rose in every region of the country, suggesting that the turnaround underway is broad-based — even if it’s likely to proceed slowly and modestly in the months immediately ahead.

The index — which measures signed sale contracts that haven’t yet gone to closing — is a leading indicator of home sales for the coming two to three months. You can bet on solid increases in sales in the South, where the index was up by 9.3 percent, and in the West, up by 4.6 percent. Pending sales in the Northeast states were up by 3.4 percent and in the Midwest by 1.3 percent.

[Source:  Realty Times]

These are good signs.  Whether we are at the precise bottom or not, this is still a very good time for buyers to take advantage of low prices and the power they have to negotiate a great price.   In my opinion, prices will not go lower, or they will not go significantly lower in Sequim.  But when they do start to rise again, when the pent-up demand kicks in, prices will bounce upward, and any buyers hoping for a super price will be sadly disappointed.

Enjoy this post? Subscribe to my RSS feed.

Sequim and Port Angeles real estate listings have seen some reductions in prices recently.  Realtors love to use euphemisms.  Just as a used car is a “pre-owned car,”  so a price reduction is a “price improvement!” True from the buyer’s perspective, but certainly not from the seller’s perspective.

In the last three months, there have been 298 properties (homes and land) in the Sequim area that have had the listing price reduced.  In Port Angeles, 220 properties have had a price improvement.  Here’s a graphic showing the reductions.

In Sequim listed prices have been reduced in the past three months to about 90.39% of the orginal listed price, and in Port Angeles listed prices have been reduced to about 89.59% of the original listed price.  This represents an average price reduction of 9.61% for Sequim properties, and 10.41% for Port Angeles properties.

These are significant reductions, but certainly not the 30% or more that cities like Las Vegas are experiencing.  Still this is significant for our area.  These numbers are meaningful, because anyone who has their home or land listed for sale must realize that they are not in the driver’s seat to bargain like they were in 2005.  This is a buyer’s market.  Sellers are not in control, at least not until the market begins to come back stronger.

NOW, do you want to see some actual numbers?  Below is a list of 167 listings that have been reduced in price, and I’ve only included the major buyer’s range from $200,000 up to $460,000.  Look at the last column to see the actual dollar amount of the reductions.  There are many $25,000 reductions, $40,000, $65,000, and up from there.  I haven’t included the million dollar home price reductions, because the majority of the buyers are just not there.  But if you’re thinking a $5,000 price reduction might move your house, think again.  Many have reduced the price 10 times that amount and more.

Read the rest of this post to see the full table of price reductions below.

(more…)

Enjoy this post? Subscribe to my RSS feed.

Price reductions for real estate listings in Sequim and Port Angeles in the month of June, 2008 are revealing.  There were about 95 properties that were either sold for less than the listed price or are still listed for sale but had a price reduction.  The average price reduction in June is 91%.  [Source of Data:  Olympic Listing Service].

This is valuable information, because it tells us where the market says prices are with respect to the listed prices.  While each property is unique, whether you are buying or selling, it is good to know that prices have been generally reduced in the month of June by 9.0%.

To view the entire data, view the rest of this post.

(more…)

Enjoy this post? Subscribe to my RSS feed.

Sequim real estate prices are reasonable but not as low as some areas of the Midwest United States. I often receive email requests or telephone requests for a stick built home with 3 bedrooms, 2 baths, and a garage under $125,000. The average price of homes sold in Sequim in the first five months of this year was $324,450.

I’ve talked with many builders in the area, and they all express the same sentiment. They cannot build a home and sell it for less than $279,000, and with a few upgrades most people want in their homes, that boosts the price of a new home to above $300,000. That’s pretty much rock bottom pricing.

Most new homes, including the price of the land, site preparation, and home construction are $350,000 to $450,000. A significant number of retirees to the area are spending a total of $550,000 to $750,000 on land and construction. Those are not even luxury homes. Luxury homes are much higher.

You can find an older stick built home for less, but you can’t replace it today at that price. Homes that are inhabitable and listed under $225,000 are gone. In a heartbeat.

Here is some real data in the form of listings that you can view in the Sequim market for homes priced under $200,000. In fact, here is a complete list as of this date of all homes listed for sale in Sequim for $200,000 and under. There are only seven, and you can click on this link and view these listings. There maybe one in here that is ideal for you, and if there is, you can email me or call me. I’d be glad to either get you more information or show you this house at your convenience.

These listings are best viewed in Internet Explorer, so if you are using Firefox, click on the link below but then switch to Internet Explorer if all your images are not showing correctly.

Click Here to View Listings

Courtesy Chuck Marunde and Sequim & Port Angeles Real Estate, LLC

Enjoy this post? Subscribe to my RSS feed.

Enjoy this post? Subscribe to my RSS feed.

What has been happening with real estate prices in Sequim and Port Angeles recently? During the month of December, 2007, there were 72 price reductions for residential properties.

Click on the image to enlarge it for viewing.

Enjoy this post? Subscribe to my RSS feed.