Our market is still in flux, however, there are still showings and interest in homes here.  Inventory of homes is still low helps maintain lot sales.  Activity was slow all quarter until just before Christmas and then it picked up. 

 

 

This third quarter report has been on hold as we keep watch on what has lately been called a "nuanced" market.  Motley Fool, along with many economists have made various predictions including the article at the end of this report.

 

Basically, what we are seeing is a correction to the price surge of the last couple of years.  Even though prices are not going up at the same rate as previously, they are still mostly higher than they were a year or so ago.  

 

Regarding Hartstene Pointe, we still have buyer demand and will continue to do so due to low inventory.  However, currently there is push back from buyers seeing mortgage rates at a 20-year high and inflation at a 40-year high.  This especially applies to those looking for a second home.  In the last quarter we saw list price reductions and homes staying on the market longer and the absence of multiple offers.

 

Our market is still a magnet for investors and with every listing, most phone inquiries are to confirm that short term rentals are allowed. 

 

 

 

It's a new season for our local real estate market! The red-hot market with double digit appreciation and record low interest rates (2.68% in December, 5.52% in June) has come to an end we have officially shifted markets.  It had to happen, it was unsustainable to continue at the pace we've been going. In order to get to the calm of a more balanced market we had to go through a messy couple of months.

The change in market means more houses on the market, longer market times, stabilizing home prices, fewer showings and open house visitors, fewer offers at one time, and more price adjustments.

 

 

Raising interest rates!  Runaway inflation!  Fear of housing bubble! Increasing prices! Recession!  Etc.!  These are some of the issues and fears buyers and sellers are grappling with these days.  What does this mean for the housing market at Hartstene Pointe?  What we are seeing now is that our historic buyer base has given way to real estate investors purchasing homes here as a vacation rental business.  80-90% of the calls I receive with every new listing is from potential buyers asking only one question:  "Can you have vacation rentals there?"  About the same percentage represents the current buyers.  

 

That being said, Pointe properties are still in demand.  As you can see from the First Quarter Summary of Sales, the three homes that were listed in that period were the three homes that sold.  A home priced appropriately will sell within days or weeks. Appropriate pricing is more important than ever.  Even though prices are still rising, they are going up more slowly, and increases are expected to drop from double digits to single digits.  Multiple offers, which have been common here in the last few years are no longer common.  Buyer pushback may be the new norm as it becomes more difficult for buyers to purchase a home, much less a second home.   However, economists are not expecting a housing bubble for a number of reasons.

 

What most economists are saying now is that this is a perfect time to sell

but that this window of opportunity is slowing closing.

 

 

Hartstene Pointe continues to be plagued by lack of inventory.  For each listing posted, there are several potential buyers, and most homes are receiving multiple offers within days.  This is a region-wide dilemma. 

 

Some of you have notified me that you are receiving letters from out of area agents stating they have a buyer ready to pay fair market value for your home.  This is a common strategy for getting listings.  Most agents in the Shelton area have lists of buyers looking for homes.  (There are about 50 on my list.) This is a result of low inventory. 

 

What is fair market value?  Can a Comparative Market Analysis or appraisal give the answer.  We can be close, but with multiple offers, homes are likely going to go above any market-value estimate.  Listing is the best way to get the best price/buyer for your home.

 

Note:  Summary Sales for 2021 have been updated to include homes sold off-market.

 

 

Third quarter has been another busy period for Hartstene Pointe.  We are still seeing prices rising, homes/island houses and lots often receive multiple offers above list price.  There is a huge backlog of buyers.  My list alone has close to sixty buyers looking for property here.  As of this writing (11/17/21), we have no island houses or homes listed for sale, and only two lots remain.  

 

According to Windermere chief economist, Matthew Gardner, price increases will trend lower.  Hartstene Pointe real estate activity is not seasonal as other markets, and often January brings out buyers.  Many of the renters coming of our vacation rentals fall in love with this community and decide to start looking for their own retreat in paradise.  Here is a link to the latest Gardner report on YouTube: https://www.youtube.com/watch?v=ebq2E6TgQ-M

 

 

What would your home sell for today?  This is a question everyone asks?  The answer?  Until your home is listed for a reasonable price and receives multiple offers, you probably cannot guess the purchase price.  Most homes listed at the Pointe are getting multiple offers above list price within a few days.  The purchase price is mostly based on buyer motivation.  Our inventory is so low that we cannot meet the current demand.  People are buying here for a multitude of reasons, but many buyers are specifically looking for homes to use for vacation rentals as a business.

 

Since 2020, lots have received the most sales because there have been more lots than homes available.  Most purchasers are planning to build in the near future. 

 

 

We just completed the first quarter in my history with not one home listed for sale.  The only listing/sale was for one island house which was purchased by a buyer who viewed it the morning it was listed! There are still many buyers waiting to purchase a home or island house here, and any listings will likely have multiple offers within days or hours.  If you are considering selling this is the time!

 

Due to lack of homes, the lot sales picked up and by March 31, four were sold and one is pending, leaving us with only two for sale.  This is great news for anyone who might want to sell a lot they no longer intend to use.

 

The buyers of these lots are all planning to move ahead with building projects as soon as possible, so we can expect a big building boom in the next couple of years.