— from Sandi Friel —
Property sales on Orcas Island are up—significantly. In fact, the number of sales on Orcas last year far exceeded pre-crash levels. The recovery, which began in 2012, has firmly taken root. Distressed property transactions (bank-owned or short sales) continue at a steady pace and are still affecting values in our market. But due to increased overall volume, they’re a smaller percentage of total sales.
Signs of a Seller’s Market? Yes and No.
A record 125 homes sold on Orcas Island in 2014, a healthy 24% increase over the previous year. The $200k to $400k price range remains the top-selling segment. Inventory in this category is slim, with less than three month’s supply, which makes conditions favorable for sellers in that range.
By contrast, last year we had only three sales in the $1m to $2m range. There are currently 22 properties for sale in that range, which at the present absorption rate works out to more than an eight year supply! Higher end properties are still a Buyer’s Market on Orcas.
Vacant Land Gaining Ground
Vacant land sales are growing at an even faster pace than homes. Forty-eight parcels sold last year—a 46% increase over 2013. While this is only about half the number sold back in 2005, it’s a significant improvement over the last few years. There’s still a glut of inventory with about a 27-month supply, so buyers have their pick of parcels. And prices are still low: in 2014, the median sales price of land was $115k compared to $286k in 2007. Since the vacant land market crashed harder than homes in both sales volume and value, it has a longer road to a recovery, but appears headed in the right direction.
Assessed Values are Not Market Values
In general, homes are selling for more than their assessed value, while vacant land is selling for less than assessed value. There are of course MANY exceptions. Overall for the last half of 2014, homes sold for a median of 115% of their new assessed value. However, the ratio of selling price to assessed value ranged wildly from 51% to 206%. The assessed value cannot be relied upon to determine market value – you need guidance from an experienced Realtor.
This data was compiled using information provided courtesy of NWMLS. You may follow Sandi Friel at OrcasReport.com.
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