2020 promises higher land prices

The MLS database shows that Clallam land sales volume has remained consistent at about 35 million dollars per year, for the last three years. Volume shows us the strength of the buyers in the market and given the same amount of inventory, a increase in volume is good news for sellers. Our market has tripled in size over the last decade.

Importantly, the number of sales per year has steadily decreased; from 371 in 2017 to 318 last year. This helps to increase median sales-prices as shown on the chart. 2019’s median-price is $90,000, this strongly indicates that your lands value has been rising recently.

Inventory has been decreasing, only about 320 active parcels now, or a one-year supply and that’s as low as I’ve seen. There are still hundreds of vacant lots in Sequim and Port Angeles that can go on market at any time and this will happen if value continues to go up. Once inventory is absorbed, developers will create thousands of more lots if there is a demand.

Timing is critical; we can see from the chart what a disadvantage sellers had in the yearly 2010’s, back then sales volume flat-lined, only averaging about 12 million and by the end of this period the median-price collapsed to $55,000. As the “bottom fell out” sellers who had to sell, sometimes settled for half or less of what their property’s had been worth just a few years earlier.

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