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.
Wednesday, July 29, 2009
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 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.
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