To: Boating Community Home Owners -Puget Sound
From: Joseph Michael Marvin
Subject: Update on Our Real Estate Market
Hi everyone! Hope this letter finds you and your loved ones in good health. Needless to say, we are in difficult financial times when it comes to our investment portfolios and home values. No matter where we turn, the air is filled with the reality of the moment, which seems to have nothing positive to say about today or tomorrow. And it is still unknown which way our portfolios and home values are headed from this date on, whether up or down. Enough said.
The purpose of this letter is to update you on what has happened over the last few years with home values in the Puget Sound Boating Communities, homes that have moorage rights or private docks. Saltwater properties and properties that have saltwater access like Lake Washington and Lake Union. As most of you know, I live in a Boating Community, Mariners Cove on Whidbey Island, work for Windermere Real Estate and manage my web site, http://www.boatcommunities.com/ and blog, http://waterfront-real-estate.blogspot.com/ Our goal is to promote and enhance our Boating Community Lifestyle. And, since my BoatCommunities.com associates and I are real estate agents, we also want to be of help listing and selling boating community homes and properties.
To start, I would like to divide the Greater Puget Sound area into four markets:
1) Metro Seattle including Lake Washington – the area that is less than a 30- minute work commute to the Seattle Metropolitan job market. Like the community of Newport Shores in Bellevue.
2) The Puget Sound area that is within an hour’s commute to the Seattle Metropolitan job market. Like the community and City of Bainbridge Island.
3) The outlying boating communities that are not really commutable daily to the Seattle Metropolitan job market. Like Mariners Cove on Whidbey Island.
4) The San Juan Islands – the main Islands with ferry service, San Juan, Orcas, and Lopez.
Of course, the ability of workers to commute to work has a major effect on property values, including our waterfront homes with moorage rights or private docks and this is reflected in the following statistics compiled from the Northwest Multiple Listing Service (NWMLS).
Home Sales with private docks / moorage statistics for the years 2006, 2007 & 2008:
Market #1 – Less than 30 minutes commute:
Homes Sold Average SqFt Days on Market Average Sales Price $/SqFt
2008 63 4083 147 $3,327,584 $815
2007 96 3830 110 3,249,787 859
2006 97 4143 192 2,991,435 725
Market #2 -Within an hour’s commute:
Homes Sold Average SqFt Days on Market Average Sales Price $/SqFt
2008 9 3803 156 $2,192,778 $570
2007 5 3372 148 1,606,400 450
2006 11 2901 118 1,342,295 527
Market #3 -Not really commutable on a daily basis, more than 1 hour:
Homes Sold Average SqFt Days on Market Average Sales Price $/SqFt
2008 12 2313 233 $711,500 $307
2007 22 2251 175 819,916 345
2006 27 2446 160 840,602 324
Market #4 – The San Juan Islands:
Homes Sold Average SqFt Days on Market Average Sales Price $/SqFt
2008 7 2771 316 $1,632,000 $625
2007 13 2799 191 1,598,781 656
2006 12 3335 248 1,817,500 580
Remember that the quality, location, setting, view, waterfront footage, dock or community moorage specifications and many other things ultimately determine what someone is willing to pay for a property.
So what do the above statistics tell us?
1) Home sales with docks were down 33% in 2008 compared to 2007.
2) Selling prices were up 8% compared to 2007. The only market to go down in average sales price was Market #3.
3) Based on the Days on Market, homes did not sell as quickly as they did in 2006-2007.
4) It shows that Market #1 is not only one of the most expensive areas to live in Metropolitan Seattle, but also in the United States.
5) It also tells us that waterfront homes with moorage for yachts are a valuable asset even if it takes an hour or more to commute to work.
6) It tells us is that for some unknown reason, homes with private docks or community moorage in the outlying areas of Puget Sound (like Whidbey and Fidalgo Island) have sold at bargain prices compared to the other markets.
7) Look at the difference in cost per square foot and the fact that the average home size is 2,000 to 3,000 feet in Market #3 and #4 versus 3,000 to 4,000 feet in #1 and #2.
Looking at homes currently for sale on the NW Multiple Listing Service with private docks / moorage (saltwater or saltwater accessible):
Market #1 - Less than 30 minutes commute:
Listings Average SqFt Days on Market Average List Price $/SqFt
107 4542 211 $4,908,631 $966
Market #2 -Within an hour’s commute:
Listings Average SqFt Days on Market Average List Price $/SqFt
5 4440 212 $2,869,780 $541
Market #3 -Not really commutable on a daily basis, more than 1 hour:
Listings Average SqFt Days on Market Average List Price $/SqFt
18 2961 298 $1,459,583 $521
Market #4 -San Juan Islands:
Listings Average SqFt Days on Market Average List Price $/SqFt
23 2597 389 $1,997,261 $806
So, what do the MLS Listings tell us about our current market?
1) The market for saltwater and saltwater accessible properties with boat docks around Puget Sound is relatively stable, and while 2008 produced slower sales, asking / list prices are not falling through the roof.
2) There are 107 homes with docks for sale within 30 minutes commute with an average list price of $4,908,631! If they sell for last years selling price of 91% of list price, then the average sales price should be $4,466,854…
3) There is not much for sale in Market #2.
4) The average Active list price in Market #3 is $1,459,583. That is over twice the average sales price in 2008. More than likely, this under-valued area should have higher appreciation or less depreciation during the next few years.
5) Days on Market for Market # 1 and 2 considerably less than 3 and 4.
6) Average home size is much larger in metro Seattle versus outlying areas and the San Juan’s. 4400 versus 2961
7) Look at and compare the Dollars Per Square Foot ($/SqFt).
Other statistics for Whidbey and Fidalgo Islands:
Current Active Listings for Whidbey and Fidalgo Islands with moorage or private dock: (this includes Mariners Cove, Skyline Marina, Shelter Bay, Lagoon Point and Sandy Hook)
Listings Average SqFt Days on Market Average List Price $/SqFt
15 2370 270 $881,090 $381
Whidbey Island 2008 Home Sales with private docks / moorage:
Homes Sold Average SqFt Days on Market Average Sales Price $/SqFt
5 2270 262 $525,800 $254
Additional Commentary:
Seems that homes with private docks on Whidbey and Fidalgo Islands sell for unbelievable low prices. Shouldn’t they be priced equal to the San Juan Islands? I love the San Juan’s and boat there every summer. But in most cases, the moorage afforded by homes in the San Juan’s is not year-round due to a lack of protection from winter storms and wind. On Whidbey and Fidalgo Island, most moorage is year-round in the boating communities Mariners Cove, Lagoon Point, Sandy Hook, Skyline Marina and Shelter Bay. Services such as shopping, healthcare, and conveniences are also an advantage for extended stays or for full time residence.
To end, I hope this information is useful for those of you that own Boating Community homes or property or are considering buying or selling. I enjoy compiling it from time to time. If you would like BoatCommunities.com to do a custom analysis on your community or property, please call or email me. Questions? just call….
Best regards, Joe Marvin
Joseph Michael Marvin, REALTOR
Boat Community Specialist, e-PRO
Windermere Real Estate / Whidbey Island
Off: 360 675 5953 Cell: 206 605 1436
Website: www.BoatCommunities.com
2 comments:
How will be Real Estate market in the coming days?
This article is very timely and relevant. As I quote Cameron Muir, an economist, "Home sales are unlikely to fall much further..That being said we expect home sales not to decline much further."
But it's never too late, with the right business plan set up, it will lead to valuable outcome. This is what most counselors would give as an advise.
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