Market Update July 7, 2021

GIG HARBOR PRICES SLOWING

Gig Harbor’s housing prices have taken a breather in their linear price appreciation trajectory.

We saw median prices in the Harbor increase by $5,990 since May ($734,000 to $799,000). While this is nothing to scoff at, it is only any increase of 0.8%.

Comparing this to Pierce County’s average increase of 1.5% (see right hand column) we can appreciate the difference.

In fact, the average home price in Gig Harbor fell by $8,500 since their last month’s high ($839,500 to $831,000).

This divergent trend between median and average prices shows there is still strong demand for housing priced between $500,000 and $600,000. Most likely, buyers are unwilling to stomach over- paying for houses whose prices have risen so rapidly, but their quality has not. Prices will most likely continue to stabilize as sellers become aware that their “as-is home” will no longer fetch multiple offers.

Mirroring the buyer appetite reduction for over-priced homes, the number of showings per listing has been steadily decreasing since the beginning of the year.

The all-time high of showings per listing (on average) was 23.7 in January of this year. We are now at an average of 13.2 showings. This decrease of nearly 45% clearly indicates buyer’s are continually dropping out of the market (due to price, fatigue,on-hold, or bought). Giving us further evidence prices will stabilize in the near future.