Friday, September 28, 2007
Download the September Prowse and Company Waterfront Update
Download the September Waterfront Update. This is your guide to our latest waterfront listings and market statistics about waterfront sales in Kitsap County.
Monday, September 24, 2007
Kitsap Real Estate Local Markets in August
The Kitsap County real estate market has some significant variation between regions. The Bainbridge Island market has lost some steam in the past month, perhaps seeing some effect of higher cost of jumbo mortgages. Generally inventory turnover is slowing significantly in most areas. Listing inventory has started to stabilize. Here is a breakdown by area.
Bainbridge Island Real Estate
Homes on Bainbridge Island were selling for a median price of about $680,000 at the end of August, up about 9% from a year ago. Kitsap County median prices were up about 8% over the past year. The YTD number of Bainbridge closed sales is up 8% from a year ago, and the YTD number of pending sales is up 7%. These are comparatively good numbers though the market is showing signs of slowing. The number of closed sales is down 16% Countywide from a year ago. The number of active listings on Bainbridge (262) is up 37% from a year ago, and the inventory turnover (total homes on the market divided by number sold last month) is 7.1 months. Bainbridge Island is a buyers market.
Bremerton Real Estate
Homes in Bremerton were selling for a median price of about $215,000 at the end of August, up about 8% from a year ago. Kitsap County median prices were up 8% over the past year. The YTD number of closed sales is down 30% from a year ago, and the YTD number of pending sales is down 28%. One must recall that the Bremerton real estate market was much better than most other parts of the County last year - essentially it had the same numbers as in 2005 with 10% appreciation - so the decline in Bremerton still represents a healthier market than in some other parts of the County. The number of active listings (249) is up 45% from a year ago, and the inventory turnover (total homes on the market divided by number sold last month) is 7.3 months. Bremerton is a buyers market.
North Kitsap Real Estate
Using the example of Kingston - the largest housing market in North Kitsap - homes were selling for a median price of about $350,000 at the end of August, up about 4.5% from a year ago. The median price has fallen significantly in the past 2 months (from $382,154 in June). Kitsap County median prices were up 8% over the past year. The YTD number of closed sales is down 13% from a year ago, and the YTD number of pending sales is down 11%. The number of closed sales is down 16% Countywide from a year ago. The number of active listings in Kingston (107) is up 45% from a year ago, and the inventory turnover (total homes on the market divided by number sold last month) is 13 months, worst among areas in our sample.
Poulsbo Real Estate
Homes in Poulsbo were selling for a median price of about $355,660 at the end of August, up about 1.6% from a year ago. Kitsap County median prices were up 8% over the past year. The number of closed sales YTD has increased 16% compared to last year, and the number of YTD pending sales has increased 46%, though a large portion of that increase is from presales of one moderately priced new construction development - homes that never appeared as active listings. The Poulsbo listing inventory (143) has risen by 1.5% compared to a year ago. The inventory turnover (total homes on the market divided by number sold last month) is 10 months.
Silverdale Real Estate
Homes in Silverdale were selling for a median price of about $315,000 at the end of August, about the same as a year ago. Most other areas still show an increase in sales price from the previous year (up 8% overall). The number of YTD closed sales was down 2.4% from a year ago, compared to a drop in closed sales of 16% for the County as a whole. The number of pending sales YTD is about the same as a year ago. The number of active listings in Silverdale (151) is up 72% compared to a year ago, and and the inventory turnover (total homes on the market divided by number sold last month) is 8 months.
Wednesday, September 19, 2007
Mid September Kitsap Real Estate Outlook
The Federal Reserve cut the Federal Funds rate half a point yesterday, resulting in an immediate jump in the stock market and cheers from many investor circles. The rate cut exceeded what many thought would be only a quarter point reduction, and was an aggressive move to restore confidence in the business community and financial markets. It is not expected to have an immediate effect on our housing market. We look at mid month to see how much the tightening of lending standards and investor pessimism was affecting our Kitsap housing market.
Here are the current statistics for Subject To Inspection (STI) and Active Listings (comparing the number in mid September to the number in mid August). You'll recall that STI represents a newly signed around contract prior to the buyer and seller agreeing on the home inspection. Below we show the number of STI contracts signed around in the first 2 weeks of the month. The number of STI contracts is the best gauge for telling us in near real time how many sales are occurring. Some of these sales will fall apart before they become pending sales.
| Area | STI 9/15 | STI 8/15 | Active Listings 9/15 | Active Listings 8/15 |
|---|---|---|---|---|
| S. Kitsap W. of HWY 3 | 7 | 8 | 184 | 190 |
| S. Kitsap E. of HWY 3 | 4 | 3 | 175 | 159 |
| Port Orchard | 8 | 8 | 182 | 196 |
| Retsil/Manchester | 4 | 3 | 151 | 152 |
| Seabeck/Holly | 2 | 5 | 146 | 144 |
| Chico | 2 | 4 | 36 | 39 |
| Silverdale | 2 | 11 | 141 | 140 |
| W. Bremerton | 9 | 16 | 227 | 223 |
| E. Bremerton | 7 | 6 | 128 | 135 |
| E. Central Kitsap | 3 | 4 | 174 | 156 |
| Hansville | 2 | 3 | 51 | 50 |
| Kingston | 3 | 3 | 102 | 93 |
| Port Gamble | 1 | 1 | 30 | 26 |
| Lofall | 1 | 3 | 41 | 39 |
| Finn Hill | 2 | 3 | 78 | 82 |
| Poulsbo | 4 | 7 | 136 | 136 |
| Suquamish | 1 | 1 | 49 | 51 |
| Indianola | 3 | 1 | 38 | 42 |
| Bainbridge | 5 | 12 | 233 | 239 |
| Totals | 70 | 102 | 2302 | 2292 |
‘STI’ deals in September fell by 31% compared to the first two weeks in August. It is reassuring that the residential inventory has stabilized - rising less than 1% from last month. The ratio of sales to number of active listings fell from 4.5% to 3%. Unlike in the past several months, Bainbridge Island sales fell by 58%, showing that the upper end of the market, which has buoyed overall sales in spite of sagging sales in the lower price ranges, is now seeing the effects of the mortgage lending problems and financial market turmoil. Sales fell markedly in West Bremerton and Silverdale also.
Properties sales are very competitive. Homes priced for the market in January are often no longer competitive. Many sellers are choosing to reduce price to remain competitive, and we are seeing some homes come on the market at prices significantly below properties already listed in the same neighborhoods, reflecting that buyers are continuing to be more selective and only the best valued homes are being chosen.
September’s APR is 6.480% on a 30-Year and 6.126% on a 15-Year, both Conforming. August’s APR was 6.733% on a 30-Year and 6.505% on a 15-Year, both Conforming. Both rates are down significantly from last month and even more from our peak 2 months ago. These rates for loans that conform to the underwriting standards of Fannie Mae and Freddie Mac continue to be attractive. Buyers moving into our area with considerable equity after selling elsewhere or having sufficient funds for a 20% down payment can expect to purchase a new home here at an attractive price and close their transaction smoothly with few problems. Buyers expecting to purchase with a lower down payment or with poor credit history will pay significantly higher interest and be required to submit to more stringent lending standards than in the past. Also buyers who wish to purchase with a jumbo mortgage (more than the maximum lending amounts of Fannie and Fred) will pay a premium. If you qualify for FHA or VA loans, these programs have become much more attractive for low down payment buyers. Check with your lender to see if you qualify. To check the daily rate you can contact your lender or preview web sites such as this one - http://www.wellsfargo.com/mortgage/rates.
Statistics not compiled or published by NWMLS
