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.
Saturday, March 21, 2009
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 (because that's all we can handle!)
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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