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
Thursday, February 26, 2009
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.
Wednesday, December 31, 2008
Looking ahead to 2009...
Some of the headlines I’ve seen this week talk about an astronomical increase in foreclosure rates for 2009. One headline, “Massive Foreclosures in 2009” on Trulia.com, featured a story stating that foreclosure filings for the month of November were up 28% from one year ago. On Bainbridge Island, the number of foreclosure filings doubled from November 2007 to November 2008; from one filing in November 2007 to two filings in November 2008. Be wary of statistics…they can be misleading.
All this is not to make light of the stresses and strains on our current housing market and lackluster economy. While the Feds are trying to stem foreclosures, lower interest rates, stimulate the economy and shore up the housing market, we have yet to see the situation stabilize.
Yet, our housing market plugs on…people still want to move to Bainbridge Island for a number of different reasons: to be with family; to send their children excellent public schools; to enjoy the strong community atmosphere, to take advantage of an easy commute to Seattle, Bellevue or Redmond.
With Seattle Public Schools in the midst of closing a number of public schools, Bainbridge Island may see an influx of school-age families looking for great public schools with affordable housing and an easy commute to Seattle. Our entry-level home prices have moved into a price range that will allow young families to purchase their first homes on Bainbridge, and send their children to our great public schools.
See…there may be a silver lining after all…
All this is not to make light of the stresses and strains on our current housing market and lackluster economy. While the Feds are trying to stem foreclosures, lower interest rates, stimulate the economy and shore up the housing market, we have yet to see the situation stabilize.
Yet, our housing market plugs on…people still want to move to Bainbridge Island for a number of different reasons: to be with family; to send their children excellent public schools; to enjoy the strong community atmosphere, to take advantage of an easy commute to Seattle, Bellevue or Redmond.
With Seattle Public Schools in the midst of closing a number of public schools, Bainbridge Island may see an influx of school-age families looking for great public schools with affordable housing and an easy commute to Seattle. Our entry-level home prices have moved into a price range that will allow young families to purchase their first homes on Bainbridge, and send their children to our great public schools.
See…there may be a silver lining after all…
Sunday, December 14, 2008
Weathering the storms...
Will it be a White Christmas?
With temps predicted to hover in the mid-twenties through the week, and more precipitation due mid-week…we could be setting up for a White Christmas!
Yes, snow days mean traffic snarls, school delays and schedule changes, but snow also gives countless young children their first look at a winter wonderland. There will be snowmen, snow-angels, snowball fights and (with enough snow) toboggans and sleds. For snowboarders and skiers, the snow is a gift in itself for now ski resorts will open their doors.
Although I no longer ski (I’m more of an annoyance on the slopes than a skier), snow on Bainbridge is always an exciting prospect. Let’s all enjoy this time with friends and family, and be thankful to live in such a wonderful and vibrant community.
First time buyer?
Ah yes, exciting times in real estate these days…every bit as exciting as the prospect of snow.
We’re told the government is hoping to bring interest rates down from their current rate of (about) 5.5%...perhaps as low as 4.5%. Many first-time home buyer’s are entitled to a $7,500.00 Federal Tax Credit if they purchase before June 30, 2009. At this time, that credit is an interest-free loan, but there is talk of making it a credit that does not need to be paid-back.
Buyers are able to negotiate in this market, often getting loan points paid or other concessions helping to make their new home even more affordable. For some, buying now ends up being less expensive than waiting to see if the market will drop another 10%: the money saved on the lower interest loan and seller-paid closing costs save more over the course of the loan than buying the house at a lower price.
Even with historically low interest rates and the Federal Tax Credit, buyers are hesitant…stuck between low house prices and the possibility of lower home prices. Too bad none of us know where the bottom is for the market, or when it will turn around. With new housing starts on Bainbridge at a virtual stand-still, some predict that we will see a housing shortage when the economy recovers.
The future remains to be seen but remember, the basics are back (hopefully to stay). Consider paying no more than 28% of your pretax income on mortgage payments, taxes and insurance. Also, remember to keep track of your credit score and take steps to improve it if necessary…a good credit score can save you a lot of money when it comes to your new home loan.
All for now…
With temps predicted to hover in the mid-twenties through the week, and more precipitation due mid-week…we could be setting up for a White Christmas!
Yes, snow days mean traffic snarls, school delays and schedule changes, but snow also gives countless young children their first look at a winter wonderland. There will be snowmen, snow-angels, snowball fights and (with enough snow) toboggans and sleds. For snowboarders and skiers, the snow is a gift in itself for now ski resorts will open their doors.
Although I no longer ski (I’m more of an annoyance on the slopes than a skier), snow on Bainbridge is always an exciting prospect. Let’s all enjoy this time with friends and family, and be thankful to live in such a wonderful and vibrant community.
First time buyer?
Ah yes, exciting times in real estate these days…every bit as exciting as the prospect of snow.
We’re told the government is hoping to bring interest rates down from their current rate of (about) 5.5%...perhaps as low as 4.5%. Many first-time home buyer’s are entitled to a $7,500.00 Federal Tax Credit if they purchase before June 30, 2009. At this time, that credit is an interest-free loan, but there is talk of making it a credit that does not need to be paid-back.
Buyers are able to negotiate in this market, often getting loan points paid or other concessions helping to make their new home even more affordable. For some, buying now ends up being less expensive than waiting to see if the market will drop another 10%: the money saved on the lower interest loan and seller-paid closing costs save more over the course of the loan than buying the house at a lower price.
Even with historically low interest rates and the Federal Tax Credit, buyers are hesitant…stuck between low house prices and the possibility of lower home prices. Too bad none of us know where the bottom is for the market, or when it will turn around. With new housing starts on Bainbridge at a virtual stand-still, some predict that we will see a housing shortage when the economy recovers.
The future remains to be seen but remember, the basics are back (hopefully to stay). Consider paying no more than 28% of your pretax income on mortgage payments, taxes and insurance. Also, remember to keep track of your credit score and take steps to improve it if necessary…a good credit score can save you a lot of money when it comes to your new home loan.
All for now…
Subscribe to:
Posts (Atom)
