Our sales volume has stabilized over the past several months and inventory is down from last year. We have 242 available homes listed for sale on Bainbridge Island, last year we had 254 at this time of year. We have 47 homes under contract right now; one year ago we had 31 homes under contract …a 51.6% improvement!
October continued the trend: In October 2009, Bainbridge Island saw 24 closed sales. In 2008 we had just 10 closed sales in the month of October.
We are not back to the days of 2006/2007, but our trends are improving month over month when compared to 2008.
Nationally, home foreclosures have dropped for three straight months; another trend helping to stabilize our housing market.
Monday, November 16, 2009
Monday, September 28, 2009
Some Green Shoots to Grab
According to Standard & Poor’s S&P/Case-Shiller U.S. National Home Price Index, real estate values increase this past quarter over the first quarter of 2009. This is the first quarter-on-quarter increase in three years. The Case-Shiller Index of 20 major cities also rose for the three months ending June 2009 over the three months ending in May 2009 (only Detroit and Las Vegas are continuing to experience declines).
Locally, our real estate volume has increased since the beginning of the year with July posting 21 residential sales and 20 residential sales in August (compared to 12 sales in January and 11 in February, 2009).
The quietest price point? Those homes over $2M (although agents report that serious interest is up for the upper echelon of home prices).
Perhaps the biggest surprise right now? Even though it is a buyer’s market, Bainbridge only has 249 active residential listings right now, far below the 300 plus often seen at this time of year.
Locally, our real estate volume has increased since the beginning of the year with July posting 21 residential sales and 20 residential sales in August (compared to 12 sales in January and 11 in February, 2009).
The quietest price point? Those homes over $2M (although agents report that serious interest is up for the upper echelon of home prices).
Perhaps the biggest surprise right now? Even though it is a buyer’s market, Bainbridge only has 249 active residential listings right now, far below the 300 plus often seen at this time of year.
Wednesday, July 29, 2009
Bainbridge Real Estate Holding Steady...
That is if you’re not selling raw land.
A glimpse of our current market activity shows that we are just about the same as last year for volume.As of Tuesday, July 28th, Bainbridge had 293 active residential listings with 40 of those listings under contract (13.7%). Last year at this time we had 338 active residential listings with 43 of those listings under contract (13%).
The condo market is moderately improved this month: 128 active with 9 under contract (7%). Last year we had 124 condos on the market with 5 under contract (4%).
Land is another story. Land loans are expensive and harder to find. There are good, solid lenders with land loans available, but the loan rates are several points higher than conventional residential loans.
We have 81 land listings on Bainbridge right now with 0 under contract. Last year we had 89 land listings with 7 under contract (8%).
Well, our real estate market isn’t as hot as our weather (101degrees today?!), but it is perking right along.
Speaking of the weather…please take special care to drink plenty of fluids and do not leave children or pets unattended in cars or any place they can over heat. Check in on elderly friends and neighbors to be sure they are OK.
Stay cool…take care.
A glimpse of our current market activity shows that we are just about the same as last year for volume.As of Tuesday, July 28th, Bainbridge had 293 active residential listings with 40 of those listings under contract (13.7%). Last year at this time we had 338 active residential listings with 43 of those listings under contract (13%).
The condo market is moderately improved this month: 128 active with 9 under contract (7%). Last year we had 124 condos on the market with 5 under contract (4%).
Land is another story. Land loans are expensive and harder to find. There are good, solid lenders with land loans available, but the loan rates are several points higher than conventional residential loans.
We have 81 land listings on Bainbridge right now with 0 under contract. Last year we had 89 land listings with 7 under contract (8%).
Well, our real estate market isn’t as hot as our weather (101degrees today?!), but it is perking right along.
Speaking of the weather…please take special care to drink plenty of fluids and do not leave children or pets unattended in cars or any place they can over heat. Check in on elderly friends and neighbors to be sure they are OK.
Stay cool…take care.
Wednesday, July 1, 2009
Confidence up as housing prices stabilize
The stock market ended its best quarter in years yesterday and pending home sales rose 0.1% in May, according to the National Association of Realtors. Hopes are high that sales will hold steady after rising 7.1% in April; April was the fourth straight month of gains.
Locally, our inventory of unsold homes is lower than in recent years. Bainbridge Island has 298 homes on the market today with 38 of those homes under contract (13% of homes are under contract.)
Not surprisingly, our most active segment of the market is first time homebuyer’s and entry-level homes. Buyers in this price range are often eligible for the $8000 first time homebuyer’s credit. These buyers generally enjoy much better interest rates with conforming loans.
Today’s statistical breakdown:
23% of the 66 homes priced up to $500k are under contract. Of the 150 homes in the $500k-$1M range, 13% of the homes are under contract. Bainbridge has 82 homes priced over $1M of which 5% (4 homes) are under contract.
Clearly, statistics favor homes priced less than $500k, but we are seeing increased activity in the upper price ranges…hopefully another sign of recovery.
Locally, our inventory of unsold homes is lower than in recent years. Bainbridge Island has 298 homes on the market today with 38 of those homes under contract (13% of homes are under contract.)
Not surprisingly, our most active segment of the market is first time homebuyer’s and entry-level homes. Buyers in this price range are often eligible for the $8000 first time homebuyer’s credit. These buyers generally enjoy much better interest rates with conforming loans.
Today’s statistical breakdown:
23% of the 66 homes priced up to $500k are under contract. Of the 150 homes in the $500k-$1M range, 13% of the homes are under contract. Bainbridge has 82 homes priced over $1M of which 5% (4 homes) are under contract.
Clearly, statistics favor homes priced less than $500k, but we are seeing increased activity in the upper price ranges…hopefully another sign of recovery.
Sunday, June 14, 2009
Home Inventory Shrinking
Waiting to purchase a home may not be the best strategy for those looking for bargains in residential real estate. Interest rates are beginning to rise and there are fewer homes on the market this year than last. As of today, Bainbridge Island has 261 active residential listings; last year at this time we had over 300 active residential listings.
In the past few weeks, interest rates have climbed from record lows of 4.5% to over 5% for a conventional, 30-year fixed-rate mortgage. While interest rates under 6% are still historically low, every tick upward impacts your mortgage payment. There are still good deals in home financing, but conventional wisdom predicts that interest rates won’t stay low forever.
Parts of King County are showing signs of price stabilization, with a few areas in the Seattle area posting price gains. System-wide, prices for single-family homes and condominiums that closed last month were up about 2.6% since January of this year.
Don’t let these historically low interest rates, lower prices and the $8000 tax credit (available to ‘first-time’ home buyers) pass you by!
In the past few weeks, interest rates have climbed from record lows of 4.5% to over 5% for a conventional, 30-year fixed-rate mortgage. While interest rates under 6% are still historically low, every tick upward impacts your mortgage payment. There are still good deals in home financing, but conventional wisdom predicts that interest rates won’t stay low forever.
Parts of King County are showing signs of price stabilization, with a few areas in the Seattle area posting price gains. System-wide, prices for single-family homes and condominiums that closed last month were up about 2.6% since January of this year.
Don’t let these historically low interest rates, lower prices and the $8000 tax credit (available to ‘first-time’ home buyers) pass you by!
Tuesday, May 19, 2009
Bainbridge Island Real Estate Now
As of May 16, 2009 Bainbridge Island had 270 residential listings; 30 of which were under contract giving us an 11% listing/pending ratio. Last month, on April 15th, Bainbridge had 252 residential listings with 33 homes under contract for a 13% listing/pending ratio.
Our most active segment of the market is in the $300k-$400k price range. 32% of homes in this price range are under contract. One of the reasons so many homes sell in this range is the availability of money at low interest rates for loans up to $417k. Loans in this range are much easier to qualify for than larger (jumbo) loans and come with historically low interest rates.
Need another incentive? For the next several months, first time home buyers may qualify for up to an $8000 home buyer credit.
Our most active segment of the market is in the $300k-$400k price range. 32% of homes in this price range are under contract. One of the reasons so many homes sell in this range is the availability of money at low interest rates for loans up to $417k. Loans in this range are much easier to qualify for than larger (jumbo) loans and come with historically low interest rates.
Need another incentive? For the next several months, first time home buyers may qualify for up to an $8000 home buyer credit.
Wednesday, April 29, 2009
Some good news
Good news for sellers: Yes, homes are selling. In fact, more homes sold in the first quarter of this year than in Q1 last year (37 vs. 34). As of April 7, there were 13.8% more homes pending (under contract) than on that date last year (33 vs. 29). Pending condominium sales are up substantially: there was only one pending at the beginning of the year vs. ten condos in contract now.
Good news for buyers: House prices are low. On Bainbridge, the median home price has dropped 17.2% since March 31 of last year (see chart below). Condominium prices have not statistically dropped, but with only five condo sales on the books so far in 2009, not enough have sold to make a valid statistical model. The same is true with land, of which there have only been three sales this year with one pending at the time of this writing.
Good news for borrowers: Loans are available, and rates are great! If you have 20% to put down with good credit, loans for less than $417,000 are readily available at rates ranging from 4.75% to 5.4%. Jumbo loans (packaged for $417K to $700K, and from $700K to $1.5M) are also available at rates as low as the high 5s and low 6s; with down payment requirements ranging from 20% to 35%. Interest rates for jumbo loans will likely decrease over the next few months.
Good news for buyers: House prices are low. On Bainbridge, the median home price has dropped 17.2% since March 31 of last year (see chart below). Condominium prices have not statistically dropped, but with only five condo sales on the books so far in 2009, not enough have sold to make a valid statistical model. The same is true with land, of which there have only been three sales this year with one pending at the time of this writing.
Good news for borrowers: Loans are available, and rates are great! If you have 20% to put down with good credit, loans for less than $417,000 are readily available at rates ranging from 4.75% to 5.4%. Jumbo loans (packaged for $417K to $700K, and from $700K to $1.5M) are also available at rates as low as the high 5s and low 6s; with down payment requirements ranging from 20% to 35%. Interest rates for jumbo loans will likely decrease over the next few months.
Wednesday, April 1, 2009
Consumer Buying Power vs. Confidence
There is a recent consumer report by Nielson Online that produced some unexpected insights on consumer buying power resulting from the economic downturn.
As expected, consumer confidence is way down. The unanticipated consequence of this economy is that some of us actually have increased purchasing power. The increase in purchasing power is due to a dip in gas and energy prices, tax rebates and historically low financing rates for those refinancing or purchasing within the conforming loan limits.
The report provides some hidden good news about our economy. You can read it for yourself; copy and paste the following into your web browser.
http://windermere.com/index.cfm?fuseaction=content.libraryHTMl&contentID=105898
Enjoy!
Bank Woes
If you perused the Business Section of the Sunday Times this weekend you found a wealth (no pun intended) of information about our local banks, and local banks under stress. The article is interesting and informative. It explains the criteria for determining a troubled bank and identifies local banks under stress. Perhaps not a 'feel good' read, but useful and practical information. To read the entire article, copy and paste the following into your browser.
http://seattletimes.nwsource.com/flatpages/businesstechnology/comparingwashingtonsbanks.html
As expected, consumer confidence is way down. The unanticipated consequence of this economy is that some of us actually have increased purchasing power. The increase in purchasing power is due to a dip in gas and energy prices, tax rebates and historically low financing rates for those refinancing or purchasing within the conforming loan limits.
The report provides some hidden good news about our economy. You can read it for yourself; copy and paste the following into your web browser.
http://windermere.com/index.cfm?fuseaction=content.libraryHTMl&contentID=105898
Enjoy!
Bank Woes
If you perused the Business Section of the Sunday Times this weekend you found a wealth (no pun intended) of information about our local banks, and local banks under stress. The article is interesting and informative. It explains the criteria for determining a troubled bank and identifies local banks under stress. Perhaps not a 'feel good' read, but useful and practical information. To read the entire article, copy and paste the following into your browser.
http://seattletimes.nwsource.com/flatpages/businesstechnology/comparingwashingtonsbanks.html
Saturday, March 21, 2009
New Consumer Website for Mortgage Relief
There is a new government website with online tools that can help troubled borrowers determine whether they are eligible to participate in a loan modification or refinancing program.
The site, MakingHomeAffordable.gov, is designed to help consumers understand how the ‘Refinancing and Loan Modification Program’ works and determine who is eligible for the program. In the press release , Housing Secretary Sean Donovan said this site provides the tools for American families to quickly access the help they need.
A number of lenders, both large and small, have already agreed to work within these guidelines and actively participate in the Making Home Affordable program.
JP Morgan Chase (including current WAMU and EMC customers) has introduced several new procedures, including proactive solicitations to eligible borrowers regarding the MakingHomeAffordable program.
If you think you may qualify for some mortgage relief, go to www.MakingHomeAffordable.gov and follow the instructions to determine eligibility.
The site, MakingHomeAffordable.gov, is designed to help consumers understand how the ‘Refinancing and Loan Modification Program’ works and determine who is eligible for the program. In the press release , Housing Secretary Sean Donovan said this site provides the tools for American families to quickly access the help they need.
A number of lenders, both large and small, have already agreed to work within these guidelines and actively participate in the Making Home Affordable program.
JP Morgan Chase (including current WAMU and EMC customers) has introduced several new procedures, including proactive solicitations to eligible borrowers regarding the MakingHomeAffordable program.
If you think you may qualify for some mortgage relief, go to www.MakingHomeAffordable.gov and follow the instructions to determine eligibility.
Sunday, March 15, 2009
Home sales up!
Perhaps we’re seeing the light at the end of the tunnel (let’s hope!).
In the first two months of last year 16 homes sold on Bainbridge Island; this year we had 23 residential sales. During January and February of last year, our median price was $700k, this year the median price fell to $528k. That price drop is a bit deceiving. Included in the first two months of last year’s statistics is a sale of $6.2M, the highest price ever paid on Bainbridge Island for a residential listing. If we remove that sale from the median price, the median sale price drops to $590k for Jan/Feb of 2008…much more in line with our reality.
It is encouraging to see sales volume up. Other parts of the country are reporting increased volumes too. This is may be a sign that the market has adjusted, that banks are beginning to lend, and that buyers are seeing value in real estate. By most accounts, real estate has been much less volatile and more stable than the stock market in recent months.
Comparing the beginning of last year to the beginning of this year shows us a few more trends. The ratio of sold price to list price in 2008 (with or without the sale of $6.2M) was over 99%; this year that ratio drops to 94.05%. This seems to show that buyers are more powerful than in previous years and sellers are giving a bit during negotiations.
Just a few more numbers to chew on…
Last year’s average sale price during January and February was $752k (without the $6.2M sale); this year’s is $626k. As I mentioned, the highest priced residential sale of a listed property ever sold on Bainbridge is $6.2M and occurred in the first two months of 2008; the next most expensive property to sell during that time period last year was $1.55M. This year January and February saw a high sale price of $1.25M.
Clearly, our prices have adjusted. The good news is that buyers are coming back to the market. We are not close to the volumes seen during the ‘boom years’ but we are seeing movement…buyers taking advantage of low interest rates and lower prices.
In the first two months of last year 16 homes sold on Bainbridge Island; this year we had 23 residential sales. During January and February of last year, our median price was $700k, this year the median price fell to $528k. That price drop is a bit deceiving. Included in the first two months of last year’s statistics is a sale of $6.2M, the highest price ever paid on Bainbridge Island for a residential listing. If we remove that sale from the median price, the median sale price drops to $590k for Jan/Feb of 2008…much more in line with our reality.
It is encouraging to see sales volume up. Other parts of the country are reporting increased volumes too. This is may be a sign that the market has adjusted, that banks are beginning to lend, and that buyers are seeing value in real estate. By most accounts, real estate has been much less volatile and more stable than the stock market in recent months.
Comparing the beginning of last year to the beginning of this year shows us a few more trends. The ratio of sold price to list price in 2008 (with or without the sale of $6.2M) was over 99%; this year that ratio drops to 94.05%. This seems to show that buyers are more powerful than in previous years and sellers are giving a bit during negotiations.
Just a few more numbers to chew on…
Last year’s average sale price during January and February was $752k (without the $6.2M sale); this year’s is $626k. As I mentioned, the highest priced residential sale of a listed property ever sold on Bainbridge is $6.2M and occurred in the first two months of 2008; the next most expensive property to sell during that time period last year was $1.55M. This year January and February saw a high sale price of $1.25M.
Clearly, our prices have adjusted. The good news is that buyers are coming back to the market. We are not close to the volumes seen during the ‘boom years’ but we are seeing movement…buyers taking advantage of low interest rates and lower prices.
Thursday, February 26, 2009
American Recovery and Reinvestment Act 2009
This announcement came out a bit earlier than expected, thanks to the newly signed American Recovery and Reinvestment Act of 2009.
FHA has increased the maximum (conforming) loan limits in all areas, essentially to match the maximum (conforming) loan limits that were phased out at the end of last year.FHA loan amounts greater than $417,000 now have an interest rate of about6.00%. FHA loan amounts less than or equal to $417,000 have a rate of about 5.50%. (Loan rates fluctuate constantly, so talk to your loan broker for current rates.)
NEW MAXIMUM LOAN AMOUNTS FOR KITSAP COUNTY
Single Family $475,000
Duplex $608,100
Triplex $735,050
Fourplex $913,450
FHA has increased the maximum (conforming) loan limits in all areas, essentially to match the maximum (conforming) loan limits that were phased out at the end of last year.FHA loan amounts greater than $417,000 now have an interest rate of about6.00%. FHA loan amounts less than or equal to $417,000 have a rate of about 5.50%. (Loan rates fluctuate constantly, so talk to your loan broker for current rates.)
NEW MAXIMUM LOAN AMOUNTS FOR KITSAP COUNTY
Single Family $475,000
Duplex $608,100
Triplex $735,050
Fourplex $913,450
Friday, February 20, 2009
Looking toward Spring
Last I wrote I was waiting for the January foreclosure numbers from the County Records. Well, they came in…a lot higher than our December numbers. Kitsap County saw 110 foreclosure notices issued to homeowners; Bainbridge Island received 8 of those foreclosure notices.
There is good news for Bainbridge. Our great schools, desirable lifestyle and proximity to Seattle continue to attract buyers from Seattle, the Eastside and beyond. Movement to Bainbridge has slowed as the general market has slowed because buyers are having trouble selling their homes. But homes are selling and buyers are taking this opportunity to own a home on Bainbridge that was previously out of their reach.
I have heard from a few agents, and seen the stats to prove it, that Bainbridge prices are now more attractive than comparable properties in West Seattle; something that couldn't be said in recent years. The price adjustments weren't pleasant, but it may be to our benefit to be a bit more affordable that other Puget Sound neighborhoods. Spring should tell us more...
There is good news for Bainbridge. Our great schools, desirable lifestyle and proximity to Seattle continue to attract buyers from Seattle, the Eastside and beyond. Movement to Bainbridge has slowed as the general market has slowed because buyers are having trouble selling their homes. But homes are selling and buyers are taking this opportunity to own a home on Bainbridge that was previously out of their reach.
I have heard from a few agents, and seen the stats to prove it, that Bainbridge prices are now more attractive than comparable properties in West Seattle; something that couldn't be said in recent years. The price adjustments weren't pleasant, but it may be to our benefit to be a bit more affordable that other Puget Sound neighborhoods. Spring should tell us more...
Monday, February 2, 2009
Market time increases
This past January (2009) Bainbridge Island had 12 residential properties close (sell) out of a total of 197 residential listings. In other words, 6 % of the available homes on the market sold last month. The average Days on Market in January 2009 was 166 for those sold properties, in January 2008 the average Days on Market was 95, over a 50% increase in market time…time for seller’s to be patient.
Although Bainbridge has a few distressed properties, we do not approach the levels of foreclosures seen in other parts of the country. December 2008 saw only one foreclosure notice served on Bainbridge Island. Data for January 2009 will be available later this week.
Although Bainbridge has a few distressed properties, we do not approach the levels of foreclosures seen in other parts of the country. December 2008 saw only one foreclosure notice served on Bainbridge Island. Data for January 2009 will be available later this week.
Friday, January 23, 2009
Bainbridge Island Vacant Land - Market Snapshot
In the last 6 months, out of 138 vacant land listings (zoned residental), 5 have sold with 1 sale pending.
SOLDS:
1 acre sold for $110k at 100% of list price
1 acre sold for $125 at 100% of list price
.55 acre sold for $185 at 79% of original list price ($235k)
.74 acre sold for $212k at 88% of list price ($240k)
1.25 view acre sold for $320k at 72% of original list price ($445)
PENDING SALES:
.22 acre listed for $119k
Of the 138 listings tracked during this period, 61 properties have cancelled or expired. That leaves 71 properties (priced from $89,500 to $2,940,000) currently listed for sale as vacant land on Bainbridge Island. (Approximately 1% of the current 71 listings are under contract.)
Mortgage rates for vacant land are always higher than owner-occupied mortgage rates because banks assess a greater risk to a loan whenever the owner does not use a property as a primary residence. With banks and lenders being even more risk adverse than normal, land loans are expensive and hard to find.
On the flip side...housing starts on Bainbridge Island have been extremely low for months. As the economy begins to right itself and demand grows, we expect a shortage of new homes, which will put pressure on prices and vacant land. It's all a matter of time.
SOLDS:
1 acre sold for $110k at 100% of list price
1 acre sold for $125 at 100% of list price
.55 acre sold for $185 at 79% of original list price ($235k)
.74 acre sold for $212k at 88% of list price ($240k)
1.25 view acre sold for $320k at 72% of original list price ($445)
PENDING SALES:
.22 acre listed for $119k
Of the 138 listings tracked during this period, 61 properties have cancelled or expired. That leaves 71 properties (priced from $89,500 to $2,940,000) currently listed for sale as vacant land on Bainbridge Island. (Approximately 1% of the current 71 listings are under contract.)
Mortgage rates for vacant land are always higher than owner-occupied mortgage rates because banks assess a greater risk to a loan whenever the owner does not use a property as a primary residence. With banks and lenders being even more risk adverse than normal, land loans are expensive and hard to find.
On the flip side...housing starts on Bainbridge Island have been extremely low for months. As the economy begins to right itself and demand grows, we expect a shortage of new homes, which will put pressure on prices and vacant land. It's all a matter of time.
Friday, January 16, 2009
A Brief Review of 2008
As anyone who is even vaguely aware of the real estate market (either nationally or locally) knows…the past year was challenging for sellers, especially if they had purchased within the past 3-5 years.
Here at Windermere we’ve been keeping statistics on average annual Bainbridge Island market sales since the early 80’s. You have to go back to 1982 to find a larger correction in average home prices than the 8.6% decline in 2008. (That 8.6% decline was tempered by the largest residential land sale on Bainbridge on MLS records of just over $6M in early 2008.) Our median price declined 13.3% bringing our median price close to the median in 2005.
In 1982, prices declined 17.63%. In all the intervening years, the next largest average price decline experienced was -3.52% in 1985. Even though this year’s drop was unusual in island history, an 8.6% decline has certainly outperformed the stock market, most regional real estate markets and the national market. In the years leading up to this year’s slide we saw increases of 13% in 2003, 14.5% in 2004, 21.5% in 2005, 12.26% in 2006 and we were up 10.7% at the end of June 2007 when the our current market decline began.
Nevertheless, 2008 showed a marked decrease in the number of folks successfully selling their houses or condominiums. Although 188 houses sold, this was a 43.4% drop from the prior year’s 332 sales. Condominiums have faired even worse, with a total of 44 sales in 2008 versus 133 in 2007 (a 67% decrease) and average prices slipping 11%. The real story is that a record 372 sellers removed their homes from the market without selling during the course of the year.
Here at Windermere we’ve been keeping statistics on average annual Bainbridge Island market sales since the early 80’s. You have to go back to 1982 to find a larger correction in average home prices than the 8.6% decline in 2008. (That 8.6% decline was tempered by the largest residential land sale on Bainbridge on MLS records of just over $6M in early 2008.) Our median price declined 13.3% bringing our median price close to the median in 2005.
In 1982, prices declined 17.63%. In all the intervening years, the next largest average price decline experienced was -3.52% in 1985. Even though this year’s drop was unusual in island history, an 8.6% decline has certainly outperformed the stock market, most regional real estate markets and the national market. In the years leading up to this year’s slide we saw increases of 13% in 2003, 14.5% in 2004, 21.5% in 2005, 12.26% in 2006 and we were up 10.7% at the end of June 2007 when the our current market decline began.
Nevertheless, 2008 showed a marked decrease in the number of folks successfully selling their houses or condominiums. Although 188 houses sold, this was a 43.4% drop from the prior year’s 332 sales. Condominiums have faired even worse, with a total of 44 sales in 2008 versus 133 in 2007 (a 67% decrease) and average prices slipping 11%. The real story is that a record 372 sellers removed their homes from the market without selling during the course of the year.
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