We live in Diamond Point, but also have a house on the market in Sequim (Sun Meadows). We built our house here in 2004, got in just before the cost of lumber went up. Houses out here tend to be more expensive in Diamond Point, but they are also high in town the higher up on Bell Hill you get.
We are not on well water, we have Aquarius water, which isn't much better. But lately it hasn't been too bad. We don't use propane at all. We have a wood burning fireplace and electric heat.
We also have Direct TV and cable for the internet, so we aren't quite in the boonies as we use to be. However, power goes out quite a bit in the winter. The Blyn power station isn't efficient enough for all of the new houses out here.
The closer you get to town, unless the house is by the water, you'll find house rates are a bit cheaper.
Yes, this is a good time to buy, because it's definitely a buyers market right now.
Tourists in the summer really is only a problem during Lavender Festival. Any locals who are not working at the festival either leave town or stay at home. Highway 101 is the the only road in and out of town, and you can be sure there will be at least one car accident to tie up traffic during that weekend. The rest of the summer it's not too bad. They are working on widening the highway in places and that has helped.
4th of July in Diamond Point can be a pain, because we are not in the city limits fireworks are shot off for a couple of weeks. If it's been a dry summer, we always worry about fires. So far we've been lucky.
As far as buying vs building, we've done both; we built this house and we bought the one in town. I like building better since you can customize it the way your want. Of course, dealing with builders brings it's own headaches. We lived in a mobile home for 2 years while our house was being designed and built, but it was worth it. We lived in town last year and moved back here and I was so glad. I'm never moving from this house again. It's definitely our dream house.
You can see pictures of both houses on my blog:
Sequim Magick