Strong home sales and a busier-than-normal winter on South Whidbey has real estate brokers looking toward a vibrant market in the coming year.

The region appears to be in the midst of a swing from a buyer’s market to a seller’s market. Right now, brokers say it’s in that happy area in-between.

“I wouldn’t quite say it’s a seller’s market,” said Charlene Arnold, broker with Coldwell Banker Tara Properties in Freeland. “I’d say everyone is happy when the day is done.”

“It’s not there yet, but it’s turning into a seller’s market and sellers haven’t had that for a long time,” said Diana Campbell, owner/broker of John L. Scott Real Estate in Freeland.

The enthusiasm comes from a winter of sales that seemed to never slow down from the normal summer boost. Most brokers and agents used superlatives such as “phenomenal,” “pretty decent,” and “just super” when referring to the busy winter. Yet, figures from the Northwest Multiple Listing Service don’t show an increase in sales, just an increase in average property sales prices and a shorter times on the market.

During the first quarter of this year, 63 homes were sold on South Whidbey, one more than sold during the same period last year. But the types of homes selling were more toward the high end, with an average price of $277,000 this year compared to $232,000 last year.

Triggering brokers’ optimism is the fact that homes are selling significantly faster this year than last. According to MLS figures, the average time on the market for residential homes sold the first quarter of 2004 was 112 days, down from 164 days last year. Those numbers are still at least six weeks longer than homes selling on the central and northern ends of the island.

“The inventory is lower than it’s been in a long time,” said Barbara Mearing, broker for Windermere Real Estate. “The flip side of that is low inventory on Whidbey is high inventory in other places.”

The price of a typical home is going up slightly, but not drastically, she said.

Arnold points out that there are not many cash buyers like there were during the island’s big real estate boom in 1989. Cash buyers can pay above appraised value, which can drive up the price of homes.

“I don’t see the prices doing what they did in ‘89 and making double digit increases,” she said.

Home sales are being generated by low interest rates that have remained low longer than people expected. Buyers with good credit can qualify for interest rates of about 5.5 percent.

This is incentive for first-time buyers to move up to their second homes.

“It’s easier to buy a higher quality home,” said Windermere’s Mearing.

She estimated this accounts for about 25 percent of sales at her agency.

The other dynamic comes from the tourists who make the leap to seasonal home owner. Typically, they visit the island in summer and return in the winter to make a purchase, Campbell said. They go for the waterfront or the view property or the secluded cabin, she said.

“Whatever makes them feel good.”

Campbell advised potential buyers and sellers to watch home sales in the Seattle metropolitan area, which have been pretty strong. This will give islanders an idea what will happen here. The island, she said, is usually about three months behind the mainland.

“If they’re doing well, we should be doing well,” she said.