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Gig Harbor Real Estate | Pending sales surge despite rate hike
Breaking typical seasonal trends, pending sales of single-family homes in the greater Gig Harbor area — spanning from the Purdy Bridge to the Narrows Bridge, including Fox Island — surged in October to their highest level in 19 months.
With 72 homes under contract, this matches the recent peak seen in March 2023. To find a higher level, we’d need to go back to August 2022. This marks a significant 67% increase from October of last year and an 18% jump from September 2024.
This surge in activity comes despite mortgage rates climbing nearly a full percentage point during the month, driven by uncertainty surrounding the presidential election. The strong increase in pending sales defies what we are seeing in some parts of the country, especially in the Sunbelt states, highlighting a robust demand in the greater Gig Harbor area.
Demand up, supply down
At the same time, new listings of single-family homes dropped by more than 25% compared to September and 4% from October of last year, while single-family home sales rose 10% year over year.
With demand for homes increasing and supply dwindling, the area’s months of supply fell sharply from 3.1 months in September to just 2.2 months in October. Although it’s common for demand to outpace supply in the fall months, the scale of this imbalance is highly unusual.
Earlier this year, months of supply had been steadily climbing, with August reaching a five-year high. However, the unexpected surge in sales activity over the past two months has reversed that trend entirely.
This uptick in demand has not yet translated into higher prices, but it’s likely only a matter of time. In October, the median sale price for a single-family home in the greater Gig Harbor area held steady at $900,000, unchanged from both August and September.
However, it’s worth noting that this represents a 7.8% increase from October of last year. With the growing imbalance between supply and demand favoring sellers, upward pressure on prices could emerge in the coming months if these trends persist.
A Canterwood community home sold for near asking price by Patrick Mercado, real estate broker with PropertiesNW.
Be prepared for competition
What does this mean for buyers and sellers as we head into the holiday season?
For buyers, while it’s typical to see fewer new listings during this time of year, the recent increase in competition means desirable new homes may attract multiple offers and waived contingencies.
For example, I recently represented a buyer on a home that escalated well above the asking price with multiple waived contingencies. The home, listed on a Thursday, was under contract by Friday night — illustrating how fierce competition can be for move-in-ready homes. However, for homes that have been on the market for some time, there may still be room for negotiation.
For sellers, if you’re considering listing a move-in-ready home with a desirable floor plan, this could be a surprising opportunity. Despite this typically being a quieter time in the market, buyer appetite is strong, and you may find your home selling faster and for more than expected.
Have a question about the data in this article or how the current real estate market impacts you? Connect with me at [email protected].
Alison Paoli 