Buying Real Estate on Orcas Island: Buying

SPRING 2006 MARKET UPDATE

The Market is somewhat quieter this spring than last year with fewer, but more serious buyers. I believe this is due in part to less inventory than our previous norm of 350 listings at any one time, and higher prices. As you will see from the numbers below, the dollar volume is 10 Million dollars more than the same period last year! This is one indication of the tremendous appreciation these past few years, with last year being 20-30%, and the significant increase of Properties selling in the over 1 million price point.

Below is the comparison of this year to last for the first six months of each year.

Year	2006	2005 ( same time period)
Listings	172 Listings	150 Listings
Active listings	141 Active listings	141 Active listings
Sold	62 Sold	73 Sold
Properties sold over 1M	9 over 1M	3 over 1M
Properties sold under 500K	37 under 500K	60 under 500K
Total $ Volume sales	$36,140,782	$26, 444,226

Is it a good time to sell? Yes, we have serious, qualified buyers looking for specific properties, and the number of people retiring will grow each year. In fact 4 out of every 10 home sales were vacation and investment homes this past year. If you are thinking of selling, we'd be happy to give you a price opinion.

Is it a good time to buy? I also think yes, we will continue to see strong appreciation on Orcas. We purchased 4 parcels last year, and are in the process of building 3 homes; we very much believe in investing in this market.

I have been hearing for quite a while now about the "collapse of the real estate market" . Having gone thru this back east, when the stock market collapsed in '87, I hope they are wrong. I was selling Real Estate in the Hopewell/Princeton, NJ market and it went totally flat. We had a very hot market prior to that, when we were experiencing multiple offers and over asking price offers..and then, wham, and the market came to a screeching halt.

The east coast market has definitely softened. The Naples Fl market which was one of the hottest places in the country has been slow for about 9 months now. Many parts of the country are experiencing quieter, more normal markets. In the past the Orcas market has sometimes flattened, but falling prices have not been my experience. I have been involved in real estate on Orcas for 18 years. As for Orcas we are seeing a small increase in listings, but more are under contract than this time last year. Our price point is higher, and as you can see 10 million more in sales volume. Our market continues to be strong. To some extent we follow the market in California and Seattle, but since we are primarily a second home market and retirement market, we are somewhat buffered. This past year 40% of home sales nationwide were second homes and investment properties. That bodes well for Orcas.

If you are wondering if there are still "good buy's" available, I believe there are. Give me a ring, and I will share my favorites with you. And if you are considering listing, we would be happy to give you a free price opinion and discuss our marketing stradegy.

Kate Wood

Archived Market Reports: December 2005