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Home prices for single-family homes in the Gig Harbor metropolitan area fell in September, dropping 0.9% to $827,492, as housing affordability reached its worst month since the beginning of this century. New home prices rose by 0.8% in September, limiting the decline slightly. Home prices for all single-family homes have fallen 4.5% since October 2022, to $866,835, and have fallen 3.4% since September of last year, according to Northwest MLS data.
Even though median sales prices are down, inventory is historically low, so there is still competition and price gouging for the most desirable and well-priced homes.
Opportunity for luxury home buyers
The impact of rising mortgage rates is felt throughout the real estate market. This is having a significant impact on luxury homes in Gig Harbor as homebuyers’ budgets tighten and luxury homes sit on the market for longer periods of time, creating an opportunity for qualified buyers to consider and negotiate.
A year ago, single-family luxury homes in Gig Harbor, between Purdy and Narrows Bridges, were priced at $1.5 million or more and accounted for 20.5% of available inventory. Currently, they account for more than a third of his total housing inventory. His median time on market was 27 days, and he remained on the market longer than any other price point in September.
Inventory growth brings the supply of single-family luxury homes to 6.2 months, making them the only buyer’s market segment in Gig Harbor by traditional measures. All other price points remain within the parameters of a seller’s market. Luxury homes accounted for 25.9% of all new properties in September, up from just 13.6% a year ago, and this trend is expected to continue.
It’s a buyer’s market for luxury homes in Gig Harbor. This home is listed by Neil Bender of PropertiesNW.
While there may be opportunities for buyers in the luxury market, homes priced under $1 million, especially those priced between $400,000 and $700,000, remain in limited supply and are likely to be driven off the market. It’s accelerating. In fact, as of September, there were only 13 single-family homes available between $400,000 and $700,000, and they had been on the market for a median of just seven days. Looking at the pipeline of new listings in this price range, the number of new listings in September was 41% lower than the five-year average, and this trend is likely to continue.
New construction inventory is decreasing
The number of new homes available for sale from Purdy Bridge to Narrows Bridge, which includes Fox Island, is significantly lower than a year ago, with many large new construction neighborhoods running out of inventory. As of the end of September, there were only 11 new homes for sale, but only a small portion of them were available for occupancy. A year ago, 32 new homes were sold, a decrease of 65.6% from the previous year. This is the highest number of new homes on the market since mid-2013, excluding the long period of construction that effectively halted construction a year after the COVID-19 pandemic began. It will be less.
Many buyers rushed into new construction over the past year as some major home builders offered financing incentives that effectively lowered interest rates for years. With fewer options for new construction, homebuyers are becoming more aware of other ways to lower interest rates on non-new construction, such as purchasing at a seller-paid interest rate or, in some cases, assuming an assumable loan. You will need to discuss this with your intermediary or financier. Available and eligible. Buyers may be able to get a deal that’s as good or better than what a major home builder is offering.
Other areas of interest
Median sales price for single-family homes:
Alison Paoli is a real estate broker with Properties NW in Gig Harbor. Her long-standing love of real estate includes having played an integral role in helping build Zillow from the ground up, and working closely with economists and analysts investigating the collapse and recovery of U.S. real estate for many years. Includes what you did. Gig for 10 years She has lived in the Harbor and is a local insider who loves sharing her tips with newcomers, all with solid data to help you make informed real estate decisions. of clients. Highly energetic, Allison is a mother, wife and volunteer in her local community, raising her three girls who are active in athletics and the arts.
