As we begin the New Year of 2014 , our brokers have provided some important insights as to the trends we might see this year.
It’s generally agreed that 2013 was the first full year of recovery since the huge market downturn. While many numbers in 2012 were impressive, more than 26% of the transactions on San Juan Island were bank-owned and other distressed property sales. Last year that number decreased to only 12%.
The 2013 market activity was fueled by several factors. One was historically low interest rates. Another was the pent up demand by buyers as they gained more confidence throughout the year.
Most of the indicators we track were in positive trajectory for 2013. As momentum continued to build throughout the year, the 4th quarter of 2013 scaled closely with the same period in 2006, considered to be near the peak of our market here.
For the past five years, the higher priced homes (above $800,000) continued to sell well and the median price of homes sold overall climbed at a sustainable pace.
Market time has decreased in nearly all price ranges as the average days-on-market for single family homes on San Juan Island decreased by 15% in 2013 over 2012.
Inventory has also been in decline during the past several years and fell again by 5% last year.
As the economy continues to improve, our brokers anticipate a continued improvement in the local market, but at a modest pace.