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!
Sunday, June 14, 2009
Tuesday, May 19, 2009
Bainbridge 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
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 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.
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
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