Monday, June 15, 2009

Current Scenario for New Construction in Ocean Shores

New construction sales in Grays Harbor County are certainly not immune to our economy. In fact, it's pretty obvious here that not only are sales down, but selling prices are also down as well. What's this mean? In means what we already know, buyers are scared to pull the trigger on writing offers because buyers are scared that they're going to lose their job or the ecomony will totally collapse, etc. It's what they're fed by the media so of course they believe it.

What I believe it means is that now is the time to buy as builders are now flexible with their pricing in order to get the inventory of their homes sold and so they can get on with building more as we all wait for the next boom to happen. Here are some numbers from the NWMLS:

Year to date New Home Sales

1/1/09 - 6/15/09 - Grays Harbor County

Pacific Beach, 1 Sale 

Ocean Shores, 13 Sales

Ocean City, 1 Sale

McCleary, 6 Sales

Westport, 1 Sale

Current Pendings

Pacific Beach, 1

Ocean Shores, 5

Aberdeen, 1

McCleary, 1

Breaking down the pending homes in Ocean Shores....

1  little cabin is pending at $137K

2 little 2/2 cabins at $155K average

1 Canal 2/2/2 at $121K

1 Interior 3/2/2, 1500 sq ft at $178,500

Breaking down the Solds in Ocean Shores....

4 little 2/1 cabins have sold for an average price of $149,875

1 little 2/1 cabin with a garage sold for $169,000.

2 little 2/2 cabins have sold for an average price of $150,500 (one bad resale/firesale)

1 2/2/1 little cabin for $172K

2 3/2/2 interior ramblers for an average of $181,700

2 2/2/2 small lake chalets for an average of $225K.

The numbers are Pretty dreary.... I know of two more sales that are coming in today (1 small lake chalet 2/2/2 for $230K and one smal 2/2/2 interior for $165K). It's hard to predict where the action is going to be this summer. It seems that all areas of new construction are getting action, the hope is that once July hits, all areas will continue to get it. 

Current inventory of New Construction: IT'S TOO HIGH!

47 New Homes on the market.

12 of those are Presales

35 are either completed or under construction

Out of the 35 New Homes

9 are 2/1 Little Cabins

1 Little 3/1

5 are 2/2 Little Cabins

3 are 2/2/2 Little Cabins

2 are 2/2/2 Interior Homes

7 are 3/2/2 Interior Homes

2 are 2/2/2 Freshwater Homes

2 3/2/2 Freshwater Homes

1 4/3/2 Interior

1 2/2.50/2 Small Lake Home

1 3/2/2 Bayfront

1 3/2/2 Ocean Front

2008 Comparison Numbers

Year to date New Home Sales 1/1/08 - 6/15/08 - OCEAN SHORES

27 New Homes sold in 2008 for an average price of $212,207/Average $/SqFt; $160.25, Average SqFt: 1,311, Average CDOM: 194 Days

2009 Comparison Numbers

Year to date New Homes Sales 1/1/09-6/15/09

13 New Homes sold in 2009 for an average price of $192,535/Average $/SqFt, $159.37, Average SqFt 1,097, Average CDOM: 142 Days

Conclusion: Inventory is too high. Builders need to keep building to earn a living. A high inventory will keep prices down. Best case is for a super summer with lots of sales. This certainly wouldn't be surprising since nearly 35% of all real estate sales out here on the beach take place during July & August.

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