October 2022 Vacant Land Reports

Windermere Real Estate/Orcas Island

PO Box Box 310 217 Main Street, Eastsound WA 98245 www.orcas-island.com orcas@windermere.com 360.376.8000

REAL ESTATE MARKET

VACANT

VACANT LAND

VACANT LANDVACANT LAND

attherealestatemarket.Currently thereare5salespendinginthe marketoverall,leaving18listingsstill forsale.Theresultingpendingratiois 21.7%(5dividedby23).Soyoumight beaskingyourself,that'sgreat...but whatexactlydoesitmean?I'mglad you asked!

Thependingratioindicatesthesupply &demandofthemarket.Specifically, ahighratiomeansthatlistingsarein demandandquicklygoingtocontract. Alternatively,alowratiomeansthere arenotenoughqualifiedbuyersforthe existing supply.

"Current inventory is described as mildly active."

Takingacloserlook,wenoticethat the$300K-$400Kpricerangehasa relativelylargenumberofcontracts pending sale.

Wealsonoticethatthe$100K-$200K pricerangehasarelativelylarge inventoryofpropertiesforsaleat4 listings.Themedianlistprice(or askingprice)forallpropertiesinthis market is $375,000.

Atotalof11contractshaveclosedin thelast6monthswithamediansold priceof$330,000.Breakingitdown, we notice that the $300K - $400K price rangecontainsthehighestnumberof sold listings.

Alternatively,atotalof6listingshave failedtosellinthatsameperiodof time.Listingsmayfailtosellformany reasonssuchasbeingpricedtoohigh, havingbeeninadequatelymarketed, thepropertywasinpoorcondition,or perhapstheownerhadsecond thoughtsaboutsellingatthisparticular time.The$200K-$300Kpricerange hasthehighestnumberofoff-market listings at 3

REAL ESTATE MARKET REPORT

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Lookingatthecharttotheright,you mightbewonderingwhyaveragedays onmarket(DOM)isimportant.Thisis ausefulmeasurementbecauseitcan helpustodeterminewhetherweare inabuyer'smarket(indicatedbyhigh DOM),oraseller'smarket(indicated bylowDOM).Activelistings (propertiesforsale)havebeenonthe market for a median time of 143 days.

Analysisofsoldpropertiesforthelast sixmonthsrevealsamediansold priceof$330,000and30dayson market.Noticethatpropertiesinthe $500K-$600Kpricerangehavesold quickest over the last six months.

Therecenthistoryofsalescanbe seeninthetwochartsbelow.The mediansoldpriceforthelast30days was $280,000 with a DOM of 27 days.

SincetherecentDOMislessthanthe medianDOMforthelast6months,it isapositiveindicatorfordemand.Itis alwaysimportanttorealizethatreal estatemarketscanfluctuatedueto many factors, including shifting interest rates,theeconomy,orseasonal changes.

"Themedianlist-to-salesratio for this area is 101.5%."

Ratiosaresimplewaystoexpressthe differencebetweentwovaluessuchas listpriceandsoldprice.Inourcase, wetypicallyusethelist-to-saleratioto determinethepercentageofthefinal listpricethatthebuyerultimatelypaid. Itisaverycommonmethodtohelp buyersdecidehowmuchtoofferona property.

Analysisoftheabsorptionrate indicatesaninventoryof9.8months basedonthelast6monthsofsales. Thisestimateisoftenusedto determinehowlongitwouldtaketo selloffthecurrentinventoryof propertiesifallconditionsremained thesame.Itissignificanttomention thatthisestimatedoesnottakeinto considerationanyadditionalproperties thatwillcomeontothemarketinthe future.

$361,250

$400,000$499,999

$262,500245,000 $ 89379,000 $ $342,000334,500 $

93% $295,000 230295,000 $ $262,500245,000 $ 93% $362,500$300,000$399,999

5 $327,500 101% $479,000

$549,500

$500,000$599,999

98% $325,000325,000 $ 23480,000 $ $480,000

1 13

$600,000$699,999

$700,000$799,999

167549,500

$480,000 $565,000565,000 $ $565,000

$480,000480,000 $ 100%

$500,000 13565,000 $ $500,000 528625,000

$480,000 100% 88% 88%

528625,000

$800,000$899,999

2 $1,200,000$1,299,999

3 $1,300,000$1,399,999

223850,000 $

$759,000

$740,000 97% 223850,000 $ $759,000740,000 $ 97% 1

$835,000 85% 84950,000 $ $980,000835,000 $ 85% 1 $900,000$999,999

$1,000,000$1,099,999

84950,000 $ $980,000

VACANT LANDVACANT LANDVACANT LANDVACANT LAND REAL ESTATE MARKET REPORT A M A A M M A A M M A A M M A A M M A M A M A M A M Date Range (Off-Market & Sold) = 04/03/2022 to 10/02/2022 Data believed to be accurate but not guaranteed. 9.8 0 1 1 $1,100,000$1,199,999

LANDVACANT LAND

1. PROPERTIES FOR SALE (ACTIVE)

a. Number Active: The number of listings for sale which are currently being marketed but do not yet have a purchase agreement.

b. Days on Market (DOM): The marketing period of currently active listings. This does not account for some listings which have had a previous listing period, but were re-entered as a new listing.

c. Current List Price: The price that a property seller is currently asking.

2. CONTRACTS PENDING

a. Number Pending: The number of current listings for which a contract has been signed but has not yet closed.

b. Pending Ratio: Sometimes called a “list-to-pending ratio”. This is a measure of how fast properties are going under contract vs. how fast they are being listed.

Pending Ratio = P (Number of Pending Listings)

A+P (Number of Active + Pending)

(P) represents properties that buyers have chosen (A+P) represents the entire pool from which they have chosen

3. OFF-MARKET

a. Number Off-Market: The number of listing agreements that have failed to close in the last 6 months. Some owners may choose to re-offer their property for sale

4. PROPERTIES SOLD (CLOSED CONTRACT)

a. Number Sold: The number of properties that have gone to a closing in the last 6 months.

b. Days on Market (DOM): The marketing time it has taken properties to sell in the last 6 months.

c. Original List Price: The price at which a sold property was originally marketed.

d. Final List Price: The price at which a sold property was marketed just prior to selling.

e. Sold/Closed Price: The price for which a property sold.

f. List to Sales Ratio: The percentage of the list price that the buyer ultimately paid for the property.

List to Sales Ratio = Sold Price Final List Price

5. ABSORPTION RATE / MONTHS OF INVENTORY

a. Absorption Rate / Months of Inventory: An estimate of how fast listings are currently selling measured in months. For example, if 100 properties sell per month and there are 800 properties for sale - there is an 8 month supply of inventory before counting the additional properties that will come on the market.