Real Estate Appreciation far Exceeds Depreciation

Real estate prices have stalled and dropped in some areas in and around Sequim and Port Angeles, Washington, but appreciation has far exceeded the minor price decreases as shown in this data from Standard and Poor’s:

City            App from        Change                2000           Oct 06-07

Atlanta         133.79          - 0.7%Boston          169.34          - 3.6%Charlotte       133.98          + 4.3%Chicago         163.12          - 3.2%Cleveland       115.93          - 4.5%Dallas          124.44          - 0.1%Denver          136.08          - 1.8%Detroit         108.15          - 11.2%Las Vegas       208.68          - 10.7%Los Angeles     249.50          - 8.8%Miami           244.35          - 12.4%Minneapolis     161.24          - 5.5%New York        205.48          - 4.1%Phoenix         200.72          - 10.6%Portland        185.10          + 1.9%San Diego       217.02          - 11.1%San Francisco   202.03          - 6.2%Seattle         189.86          + 3.3%Tampa           206.38          - 11.8%Washington      226.71          - 7.0%

Seattle is a substantially different market than the Olympic Peninsula, but the price history has been similar. Since 2000 home prices in the Seattle area have appreciated 189.86%, and even in the last year, Seattle prices have increased 3.3%. The winter months always slow down on the Olympic Peninsula, and the spring months will tell us how 2008 will turn out for home sellers in the area.

Inventory is up as expected in this market, but we simply have not seen a crashing of prices by any measure in Sequim and Port Angeles. We are on a plateau for home prices, and we’re seeing an increase in inventory, especially of lots, and greater competition among developers and builders. It is normal for developers to catch the first rogue wave, because developers must plan ahead for many years. To get a project to market is the culmination of a lot of hard work by the captain and deck hands, several years, and a hull full of money. When a market starts to slow, projects must be completed even if it takes longer to sell them out. There’s no turning back. That’s how it works.

As with many things, timing is everything if you’re selling, but for individual home owners, pricing your home at true fair market value (FMV) is a major key to get a buyer to sit down and make a written offer in any market.

In difficult times wisdom becomes a precious commodity in deciding what to do and how to do it. I would recommend home buyers and sellers select their professional Realtor very carefully. Wisdom is not common. It comes from many years of diligence, education, experience, and the school of hard knocks. Search for it like buried treasure, because only by making wise decisions will you rest in the comfort of knowing you got the best price at the right time in the right place.