Market Update – Spring 2012

Bouncing Along the Bottom
Orcas Island home prices in the 1st quarter were down significantly. In fact homes have now reached their lowest prices yet on Orcas: the median sale price was 56% of assessed value. Yikes!

Of course the sample size is small; only 11 homes sold (13 sold in 1st quarter 2011.) Three of the homes were bank-owned. The majority of homes sold under $250k, but there were sales in higher price ranges too.

One of the most amazing deals was a 5,000 sq.ft. view home on Buck Mountain which sold for $775k; its assessed value was $1.7mm. It was bought by a local couple.

We saw six sales of vacant land, most at giveaway prices. The highest priced sale was $200k for a .5 acre high bank waterfront parcel near Eastsound. It sold for 41% of assessed value.

One of the lowest priced sales of vacant land was $55,700 for nearly 2 acres in Spring Point. It sold for 29% of assessed value after 525 days on market (original price was $189k.)

Despite the sluggish start, the prevailing attitude among Realtors here is optimistic. We’re busy with showings andas of this writing the NWMLS indicates 18 properties in escrow. Teri and I even encountered a bidding “war” on one of our listings. Serious buyers know now is the time. Stay tuned for my next Report!

Note:  I compiled this information from County records and NWMLS.  I believe it to be reliable but cannot guarantee its accuracy. Excluded from the assessed value figures are irrelevant taxable values such as properties not assessed prior to land division,  properties with special tax status such as Designated Forest Lands (DFL) and inter-family sales. 

2011 Sales Summary

One Step Forward…
One step back. After an encouraging 19% increase in number of sales in 2010 vs. 2009, in 2011 we saw a 16% decrease over 2010. There were 92 transactions for homes and land in 2011, down from 128 in 2010 and 95 in 2009.

This despite the increasing affordability of homes: last year the median sales price to assessed value ratio for homes dropped to 70% (in 2010 it was 76%, in 2009 it was 80%.) In 2011, the median sales price of a home was $282,500, compared to $367,500 in 2010 and $450,000 in 2009.

Fifty-one percent of homes were inland, 32% were waterview and 17% were waterfront. The total number of homes sold was 65; at least 11 of those were bank-owned compared to four in 2010.

Land made up 20% of sales in 2011. The median sale price of vacant land was $120,000.

So where are the buyers? Trying to stay afloat, delaying plans for retirement, trapped in a home they can’t sell… you know the story. Those that are in a position to buy seem to be in no hurry to do so.

The properties sold for an average of 90% of their final list price. So the same rule applies as in years past: If you want to sell your property, you need to price it not much higher than its true market value. It’s better to price your property lower and hold tighter to your number than it is to overprice.

And Buyers, when you find what you want at the right price, you should jump on it! Even in this market, some ultra-desirable properties that are well-priced are seeing multiple offers.

Note:  I compiled this information from County records and NWMLS.  I believe it to be reliable but cannot guarantee its accuracy. Excluded from the assessed value figures are irrelevant taxable values such as properties not assessed prior to land division,  properties with special tax status such as Designated Forest Lands (DFL) and inter-family sales. 

Market Update – Fall 2011

What’s Up with Higher Sales Prices?
In the 3rd quarter the median price of a home on Orcas Island rose to $345k, up from $200k in 2nd quarter. And the median price of vacant land rose from $170k to $273k.

But those statistics only indicate what price range properties are selling, not that values are increasing. In fact the median “sales price to assessed value” (SAV) ratio was down this quarter for both homes and land — 68% compared to 79% for all of 2010.

This is due in part to the continued pressure of foreclosures. In the 3rd quarter, three bank-owned homes sold on Orcas and another four came on the market. There were 10 foreclosure filings, three of which were properties assessed at over $1.5mm. Ouch!

With interest rates still hitting record lows, are buyers stepping up? Not exactly. The number of transactions were about the same as 3rd quarter last year, but year-to-date they’re down 8% compared to 2010. Homes outsold land by more than 3 to 1.

One noteworthy trend: an increasing number of buyers are out of state (primarily California), which could indicate the leading edge of a recovery about to hit our shore. Will it be a  ripple or a wave? Stay tuned!

Note:  I compiled this information from County records and NWMLS.  I believe it to be reliable but cannot guarantee its accuracy. Excluded from the assessed value figures are irrelevant taxable values such as properties not assessed prior to land division,  properties with special tax status such as Designated Forest Lands (DFL) and inter-family sales. 

Market Update – Summer 2011

Locals Drive the Market in the 2nd Quarter
The “Buy Local” campaign has spilled over to real estate. Fifteen of our 24 sales were made by local islanders! And thank goodness…without them our slim quarter would’ve been less than a dime.

Home sales (including four condos) made up 75% of transactions. The median price of a home dropped to $200,000 – the same as our median vacant land price last year. The median price of vacant land (four sales) this quarter was $170k.

The median sales price to assessed value ratio was 74%, down from 79% in 2010.

Homes and land sold for an average of 87% of their final list price, down from 92% in 2010. Properties are taking longer to sell; the average days on market was 431, up from 311 in 2010.

In general, buyers are cautious, taking their time. But locals remember when most homes were unaffordable here. They’re seizing the opportunity to invest in the San Juan Islands. Will that continue? Stay tuned!           

Note: I compiled this information from County records and NWMLS.  I believe it to be reliable but cannot guarantee its accuracy. Excluded from the assessed value figures are irrelevant taxable values such as properties not assessed prior to land division,  properties with special tax status such as Designated Forest Lands (DFL) and inter-family sales. 

Market Update – Spring 2011

More Of The Same, But A Few Suprises Too
When I finally tallied our 1st quarter sales, I thought surely there must be a mistake. Only 18 sales? Yikes! Then I looked at first quarter last year and found there were 19 sales. Ok, not so bad, and still better than the 15 in 2009. Glass half full.

What’s selling? Homes (including 2 condos) made up 72% of our sales, topping the 72% we saw in 2008. The median price was only $280k and 3 sales were bank-owned. The shocking sale that’s affecting values was a  remodeled 3 bedroom, 3 bath home with 2-car garage and shop AND marine view near Bayhead Marina. It was on the market for 288 days, starting at $559k. It was a bank-owned home.

Overall, the average and median sale price to assessed value for homes was 72%, a little lower than last year’s 79%.

Are you a land owner? Sit tight for some scary news. (If you’re a buyer, it’s time to get off the couch!) The average sale price to assessed value for vacant land was 40%; the median was 39%. Granted this is based on only 5 sales, but the ratios were 13%, 37%, 39%, 56% and 58%. The 13% was a building circle in Eagle Lake that sold for $24k and was assessed at $184k-this assessment seems high and is throwing off the average. But still…these are lowwww.

Four of the five land sales were inland (no water view). And more than half of the home sales were inland, followed by waterfront.

Stay tuned for my mid year report.           

Note: I compiled this information from County records and NWMLS.  I believe it to be reliable but cannot guarantee its accuracy. Excluded from the assessed value figures are irrelevant taxable values such as properties not assessed prior to land division,  properties with special tax status such as Designated Forest Lands (DFL) and inter-family sales.