2023 Olympic Peninsula Saltwater Waterfront Real Estate
Olalla to Raft Island
Average sales price in 2022 = $1,699,900
Up 9.4% from 2021
Understanding this year’s real estate market requires last year’s data. That's because homes sold in 2022 are the comparable sales (comps) upon which 2023 listings are based.
To level the playing field, manufactured homes, condominiums, and land sales are not included in this calculation – only “single-family homes” sold in 2022. Yes, sale prices were up but so was discounting. Notice the "list to close price difference" – moving more to a buyers’ market.
2022 Home Sales in Gig Harbor Waterfront
Let's face it, some areas have bigger homes on average than others. That's because homes used for vacationing are smaller than full-time residents and this variation should not be a factor when comparing beaches. WHY? Because families wants a 2000 square foot home, not an "average sized" home for any given beach. For this reason, I calculate the average price per square foot.so you can compare apples to apples.
Each dot on the chart below is a 2022 waterfront home sale, placed on the chart by its price verses its square footage. The red line is a mathematical average calculated from these dots to determine the average sale price at any given size of home. From this, you can compare the price of a 2000 square foot home (or any sized home) on any given waterway. OR, if you have a set budget, you can see how large of a home your investment will buy on this beach when compared to others.
“Time to Close” is defined as the day a property is listed to the day it closes. That includes showings, negotiating the offer, inspections, and an average of 30-40 days of escrow. Remember, cash sales close faster because no bank appraisal is necessary. Also, some areas close quicker because of the availability of inspectors, appraisers, tradesmen, and escrow professionals. Still, this is a good judge of market activity.
To determine this area’s days on market, the same dots used on the other charts are now marked by the sale price vs. how much time it took to sell. I then draw a red line to indicate the average time to close. One sale in Gig Harbor however skewed this calculations by being on the market 1120 days.
Due to their proximity to services, some beaches are better suited for full-time residents. This changes real estate buying patterns. It’s true that waterfront properties are more of a summer purchase although it may be because more is available – a chicken or the egg conundrum. This buying pattern however is more typical of full-time residential ownership rather than vacationers.
Buying patterns take on additional significance in 2022. Interest rates started to tentatively rise in March, however after a .50 increase in May, the fed rate rose .75 for four of the remaining six months with another .50 in December. This affected all-around spending including real estate as the year went on. Every beach documented this year sold fewer homes than last year including Gig Harbor but 2021’s low interest Covid-driven buying was historically high. We are returning to normal.