It's a long stretch of the imagination to place John Steinbeck's world onto Bainbridge Island. He's all weathered faces on dust bowl refugees in gritty California neighborhoods. We're all rain on fleece-wearing California refugees hiding out amongst the cedars.
But, now's the time for all good Islanders to bring the worlds together. Our library is calling for submissions to its Bainbridge Island Sketches, a compilation of fictionalized depictions of life here. Change the names, stay under 2,000 words, and revel in the juicy details of your friends and neighbors, the quirkier the better. As the BI Review reported today, "Capture the essence of Bainbridge and its inhabitants in exact and signature details." The great Ann Combs is giving a free workshop on writing the sketches at Eagle Harbor Book Co. this Sunday afternoon at 3. Come on by. I hope to be there with a few of my favorite Bainbridge images and details.
The deadline is October 26th; send entries to Kathleen Thorne thornekm@gmail.com and prepare to win. Selected entries will be read at San Carlos November 1st. That's only fitting, since the majority of our quirkiest residents find their way to San Carlos, many on a regular basis.
I have an additional reward. If any of my clients who have moved to Bainbridge in the last ten years have their entries selected for reading, I'll treat you to your favorite margarita at the San Carlos bar. Get writing!
Friday, October 2, 2009
Thursday, October 1, 2009
Third quarter market analysis Bainbridge Island real estate~
We're just now getting the statistics for the end of September, and we're about to start on the final quarter of 2009. Everybody I talk to wants to know the same thing--how's real estate doing on Bainbridge Island.
One bit of information I've analyzed this past week is helpful. It's an Excel spread sheet that shows the listing/pending ratios that we've been tracking on Bainbridge for the last several years. Some real estate analysts believe that comparing the number of total listings to the number of listings in contract will give you a good view of the health of the marketplace.
At the end of September we had 289 total residential listings, with 47 of those houses in a contract to be sold. That's a 16% "absorption rate," which is significant for two reasons. The first is that conventional wisdom is that 16% is seriously a Buyer's market, and that's not news to anyone.
But, the other significance is that the last time we were close to 16% was July of 2007 at 19%. That's when we had crested the top of the market and had our skis pointed downhill. Little did we know then that this was going to be a black diamon run with moguls! By October of 2007 we real estate agents knew the market had dropped; few of us understood that it had fallen off a cliff. When we look back at the numbers, that free fall is apparent. The absorption rate in May of 2007 was 27%, and by October it was 9%. In one quarter we went from 52 homes in contract to 23 . We've pretty much been bouncing along that bottom ever since.
It was hard to know in the period from the summer of 2006 to the summer of 2007 that we were at the very peak of the marketplace. Some indicators were apparent, and looking back now we can see all the signs. It took courage and vision during that year to sell when everyone else was buying, when prices seemed to be rising with no end. But, nothing has no end.
It is hard now to know if we are at the bottom. Prices are still dropping. It takes courage and vision to buy when few are buying. But, prices are at 2005 level, or lower, interest rates are low, and Sellers are eager to sell. Perhaps a year or two from now we'll all know if indeed this is the bottom. If it is, those who buy now will be congratulating themselves.
One bit of information I've analyzed this past week is helpful. It's an Excel spread sheet that shows the listing/pending ratios that we've been tracking on Bainbridge for the last several years. Some real estate analysts believe that comparing the number of total listings to the number of listings in contract will give you a good view of the health of the marketplace.
At the end of September we had 289 total residential listings, with 47 of those houses in a contract to be sold. That's a 16% "absorption rate," which is significant for two reasons. The first is that conventional wisdom is that 16% is seriously a Buyer's market, and that's not news to anyone.
But, the other significance is that the last time we were close to 16% was July of 2007 at 19%. That's when we had crested the top of the market and had our skis pointed downhill. Little did we know then that this was going to be a black diamon run with moguls! By October of 2007 we real estate agents knew the market had dropped; few of us understood that it had fallen off a cliff. When we look back at the numbers, that free fall is apparent. The absorption rate in May of 2007 was 27%, and by October it was 9%. In one quarter we went from 52 homes in contract to 23 . We've pretty much been bouncing along that bottom ever since.
It was hard to know in the period from the summer of 2006 to the summer of 2007 that we were at the very peak of the marketplace. Some indicators were apparent, and looking back now we can see all the signs. It took courage and vision during that year to sell when everyone else was buying, when prices seemed to be rising with no end. But, nothing has no end.
It is hard now to know if we are at the bottom. Prices are still dropping. It takes courage and vision to buy when few are buying. But, prices are at 2005 level, or lower, interest rates are low, and Sellers are eager to sell. Perhaps a year or two from now we'll all know if indeed this is the bottom. If it is, those who buy now will be congratulating themselves.
Monday, September 28, 2009
Advantages of making Bainbridge Island home and playing in Seattle~
It doesn't take much to remind me of the advantages of living on Bainbridge Island. My dear husband and I had a date night in Seattle yesterday, and the reminders were everywhere. We had tickets to "Wicked," at the Paramount, and took an early ferry so we could do some shopping and have dinner before the show.
http://www.stgpresents.org/artists/?artist=910
We walked onto the ferry, and took a leisurely stroll through downtown Seattle. The Seahawks game was getting out, and when we caught a glimpse of the freeway, we could see that traffic was backed up and moving slowly. Event parking at the Paramount was $20 a car. We weren't affected by either of these things. When the play finished a $6 cab ride had us back to the ferry terminal in time for the 9:45 ferry.
Those of us lucky enough to live and work on Bainbridge don't commute into the city every day. Those Islanders who do experience all that Seattle offers, and through their work they are an integral part of that great city. Sometimes it takes an extra effort for the rest of us to make plans, buy tickets and get into the city, but it's such a luxury to have Seattle so nearby.
And, for all of us, it's a joy to return to the peaceful island at the end of the day.
http://www.stgpresents.org/artists/?artist=910
We walked onto the ferry, and took a leisurely stroll through downtown Seattle. The Seahawks game was getting out, and when we caught a glimpse of the freeway, we could see that traffic was backed up and moving slowly. Event parking at the Paramount was $20 a car. We weren't affected by either of these things. When the play finished a $6 cab ride had us back to the ferry terminal in time for the 9:45 ferry.
Those of us lucky enough to live and work on Bainbridge don't commute into the city every day. Those Islanders who do experience all that Seattle offers, and through their work they are an integral part of that great city. Sometimes it takes an extra effort for the rest of us to make plans, buy tickets and get into the city, but it's such a luxury to have Seattle so nearby.
And, for all of us, it's a joy to return to the peaceful island at the end of the day.
Tuesday, April 28, 2009
Bainbridge Island to Seattle: most beautiful ferry ride in the US~
Budget Travel magazine has just listed the most beautiful ferry rides in the United States, and the 35-minute ride from Seattle to Bainbridge Island was prominently featured. (We who live on "the rock" tend to think of it as the Bainbridge to Seattle ferry.) Here's the link to the article: http://www.budgettravel.com/bt-dyn/content/article/2009/04/23/AR2009042301954.htmlYou'll find four pictures featuring the Seattle skyline and the beautiful Puget Sound. They recommend spending time shopping, dining and hiking the trails on Bainbridge. Finally, they recommend staying long enough to make a sunset crossing back to the city, which made me smile since the sun sets around 10 p.m. in the summer! That would make for a great day on the Island.
The grammar of Bainbridge Island real estate~
Today's blog is all about grammar, which seems like an unlikely subject for real estate. Yet, one of an agent's many duties is writing those all-important descriptions of properties, the ones where we're supposed to both accurately describe the premises and capture the imaginations of potential buyers. Clichés abound, and originality can have its problems. Errors slip in more often than not.
I'm a former English teacher raised in a family of English teachers, so I'm hard-wired to be picky. My own pet peeves are the word "separate" spelled "seperate" and the modifier "unique" itself modified. We see the phrase "truly unique" used frequently, as if some property is more than one-of-a-kind.
The Bainbridge Review famously ran an ad for a beach-side property that featured "all day sun on a south-facing dick," which makes you wonder what the neighbors thought, and if the feature would stay with the house--hopefully, not. I've seen ads for mini-tutors, teachers short on patience, no doubt. And, one home was listed as having "gentile" style, much to the agent's chagrin.
The National Association of Realtors insists that the word "realtors" should be both capitalized and followed by a trademark symbol, which usually doesn't happen. Furthermore, many realtors pronounce the word "real-a-tors," which seems wrong on many levels. But the issue I can't get around is whether we should hyphenate "real estate agents." The standard journalistic style books, including those of the venerable New York Times, require compound modifiers to be hyphenated. Ergo, it should be "real-estate agents." I suspect none of us uses that form.
Clearly it's a slow day in real estate, and this Realtor®, looking at the rain, is glad to be a real-estate agent who's staying indoors today.
I'm a former English teacher raised in a family of English teachers, so I'm hard-wired to be picky. My own pet peeves are the word "separate" spelled "seperate" and the modifier "unique" itself modified. We see the phrase "truly unique" used frequently, as if some property is more than one-of-a-kind.
The Bainbridge Review famously ran an ad for a beach-side property that featured "all day sun on a south-facing dick," which makes you wonder what the neighbors thought, and if the feature would stay with the house--hopefully, not. I've seen ads for mini-tutors, teachers short on patience, no doubt. And, one home was listed as having "gentile" style, much to the agent's chagrin.
The National Association of Realtors insists that the word "realtors" should be both capitalized and followed by a trademark symbol, which usually doesn't happen. Furthermore, many realtors pronounce the word "real-a-tors," which seems wrong on many levels. But the issue I can't get around is whether we should hyphenate "real estate agents." The standard journalistic style books, including those of the venerable New York Times, require compound modifiers to be hyphenated. Ergo, it should be "real-estate agents." I suspect none of us uses that form.
Clearly it's a slow day in real estate, and this Realtor®, looking at the rain, is glad to be a real-estate agent who's staying indoors today.
Tuesday, April 21, 2009
Harbour Public House on Bainbridge Island named a great seafood dive~
May "Coastal Living Magazine has named our "Pub"--Harbour Public House--as one of America's best seafood dives. Best, yes. But, dive...? In an article called, "America's Best Seafood Dives," they call out two places in Seattle (Lowell's in Pike Place and Spud Fish & Chips in Alki) and one in Gig Harbor (The Tides Tavern), but they recognized our Pub's "seasonal menu...including top-rated fish-and-chips.
My soon-to-be-son-in-law from England, deemed the Harbour Public House "a proper pub," and so it is. From there on a clear day the views of the harbor and marina can stretch all the way to the Seattle skyline and beyond to the Cascades. It's the place our out-of-town visitors always insist on visiting. The beers are cold and on tap, the company is great, and it's almost time for mojitos on the patio. More than one client thinking about moving to Bainbridge Island has "sealed the deal," at the Pub and decided to make Bainbridge home. I'll see you there soon.
Monday, April 20, 2009
Spring comes to Bainbridge Island (finally!)~
I was walking into town on the trail that skips along Eagle Harbor and deposits you at the western-most edge of Winslow Way. The cherry trees on the grounds of Sun Day Cove condominiums are in bloom right now, and I wanted my fill of their beauty.
What I didn't anticipate was a poem carefully printed out in a rosy font and secured to one of the branches in a mostly watertight plastic sleeve.
If you have a chance, stop by to stand under the blossoms and read what's there for yourself. If that's not possible, here it is, a lovely poem by AE Housman:
Loveliest of Trees
Loveliest of trees, the cherry now
Is hung with bloom along the bough,
And stands about the woodland ride
Wearing white for Eastertide.
Now of my threescore years and ten,
Twenty will not come again,
And take from seventy springs a score,
It only leaves me fifty more.
And since to look at things in bloom
Fifty springs are little room,
About the woodlands I will go
To see the cherry hung with snow.
Since I am closer to "threescore years and ten" than to the poet's "twenty score," I certainly can't count on another fifty springs. I'm glad I used one day this spring to enjoy the view, the sunshine and a lovely walk with family members, and that I stopped, not to smell the roses, but to read a poem hanging like ripe fruit for the reading. I want to thank whoever planted it there for me and other passers-by. Imagine if we found poems wherever we travelled!
Wednesday, March 25, 2009
Spring on Bainbridge Island~
Yesterday I spotted my first hummingbird. The daffodils planted in the center of the roundabout are in full, glorious bloom, or would be if the sun shone on them. The shrubberies are turning lime green as the leaves pop out anew. The lawn is growing and we await dry weather to mow it (I say we, but I mean my hubby.)
I'll be driving around the island tomorrow on the lookout for my favorite sign of Spring--newborn baby lambs. One friend tells me her brood hens have hatched out one chick, with 38 more to go! It's getting to be time to plant peas.
At 6 o'clock the sun still shines, somewhere that is. Not so much here, where clouds persist, and drizzles are the order of most days. On sunny days we rush to wash our cars, and the next day they muddy up again.
Is this enough to make us long for Santa Barbara? Yes, but only in a place to visit sort of way. I love those "markers" of one season melding into another. I'd like a buttery, daffodil, baby-chick fuzzy yellow sweater to wear under my black raincoat. 'Tis March on Bainbridge Island.
I'll be driving around the island tomorrow on the lookout for my favorite sign of Spring--newborn baby lambs. One friend tells me her brood hens have hatched out one chick, with 38 more to go! It's getting to be time to plant peas.
At 6 o'clock the sun still shines, somewhere that is. Not so much here, where clouds persist, and drizzles are the order of most days. On sunny days we rush to wash our cars, and the next day they muddy up again.
Is this enough to make us long for Santa Barbara? Yes, but only in a place to visit sort of way. I love those "markers" of one season melding into another. I'd like a buttery, daffodil, baby-chick fuzzy yellow sweater to wear under my black raincoat. 'Tis March on Bainbridge Island.
Monday, March 16, 2009
Green building and home improvement can mean greenbacks to you~
Homeowners often ask me what they can do to maximize the value of their homes for resale. My usual answer is to do the things you will enjoy or benefit from first.
President Obama's stimulus package has given us a reason to invest in our homes in a way that will help save our planet , making our houses more efficient, and that will give you cash back to help pay for the work. An article in The Christian Science Monitor clearly lays out the advantages of updating now.
Stimulus Plans Brings Green Home Improvement Tax Breaks
By G. Jeffrey MacDonald
Energy-saving systems for the attic, basement, and in between have effectively gone on sale, courtesy of the United States Congress.
Here's the link: http://www.csmonitor.com/2009/0223/p13s01-wmgn.html. (I'm indebted to Sustainable Bainbridge for calling my attention to this article and posibility.)
The home improvements that seem best for Bainbridge Island are installing a heat pump, replacing low-e windows, adding insulation top and bottom, and perhaps changing out an inefficient water heater. I'm going to look into that last one myself; water heaters typically last about a dozen years. While I'm at it, I'm going to have the plumbing changed to install a recirculating system so I don't have to run water down the drain waiting for it to heat up.
Obama's package raises the ceilings on tax credits available, so there is real money possible, which will make the effort involved worth doing. The CSM article also gives links to other sites that help with navigating the system. Note, that the credits are valid only this year and next.
President Obama's stimulus package has given us a reason to invest in our homes in a way that will help save our planet , making our houses more efficient, and that will give you cash back to help pay for the work. An article in The Christian Science Monitor clearly lays out the advantages of updating now.
Stimulus Plans Brings Green Home Improvement Tax Breaks
By G. Jeffrey MacDonald
Energy-saving systems for the attic, basement, and in between have effectively gone on sale, courtesy of the United States Congress.
Here's the link: http://www.csmonitor.com/2009/0223/p13s01-wmgn.html. (I'm indebted to Sustainable Bainbridge for calling my attention to this article and posibility.)
The home improvements that seem best for Bainbridge Island are installing a heat pump, replacing low-e windows, adding insulation top and bottom, and perhaps changing out an inefficient water heater. I'm going to look into that last one myself; water heaters typically last about a dozen years. While I'm at it, I'm going to have the plumbing changed to install a recirculating system so I don't have to run water down the drain waiting for it to heat up.
Obama's package raises the ceilings on tax credits available, so there is real money possible, which will make the effort involved worth doing. The CSM article also gives links to other sites that help with navigating the system. Note, that the credits are valid only this year and next.
Thursday, February 26, 2009
The property tax blues--making sense of Bainbridge Island real estate taxes~
My friend and former client emailed me yesterday concerned that her property assessed value is much too high. She wondered if I could help her appeal it. With the bills for property taxes arriving, that's a question lots of folks are asking.
My friend's simple question has sent me on a short but fascinating journey into the web pages and pdf forms of the Kitsap County Assessor's office.
Here's what I've learned:
One, the state has charged the counties to assess your property at 100% of market value.
Two, the assessment for your property was done last year. You pay taxes in 2009 on the 2008 assessment made before the notices go out in June of 2008.
Here's the kicker: Three, The 2008 assessment value is based on sales closed in 2007!
Your assessment and the subsequent tax payment lags behind the market by two years. You're sitting in your house or condominium watching prices drop around you, and you get your tax bill. "No way, Martha," you say, "could we sell this place today for what they say it's worth." Maybe you could and maybe you couldn't, but that doesn't really matter. The issue is, what could you have sold it for in 2007 (at the height of our market)?
The two year lag served us well in times of rising prices. Now, not so much.
Here's the final kicker--in the pants, that is. The time for appealing your assessment is long past. You are allowed 60 days after the Notice of Value was sent out in June 2008--August 2008 was the deadline.
If you feel your assessment is terribly out of line, take a look at the Notice of Value you'll get this coming June. Anyone can go to the county assessor's web page: http://www.kitsapgov.com/assr/appeal/appeals.htm to find all the information you need to begin the appeal process next year. There's a link under "Sales" to all the recorded sales in specific areas and for different types of properties on Bainbridge Island (and the rest of Kitsap County.) Keep in mind that appeals for your 2009 assessment will need to cite comparable properties that sold in 2008.
My guess is that properties that are reassessed in value next year will see a drop, because we've seen a drop in the prices for the last eighteen months.
If you would like help compiling sold data to mount an appeal this summer, I'd be happy to be of assistance. Just give me a call or drop me an email.
My friend's simple question has sent me on a short but fascinating journey into the web pages and pdf forms of the Kitsap County Assessor's office.
Here's what I've learned:
One, the state has charged the counties to assess your property at 100% of market value.
Two, the assessment for your property was done last year. You pay taxes in 2009 on the 2008 assessment made before the notices go out in June of 2008.
Here's the kicker: Three, The 2008 assessment value is based on sales closed in 2007!
Your assessment and the subsequent tax payment lags behind the market by two years. You're sitting in your house or condominium watching prices drop around you, and you get your tax bill. "No way, Martha," you say, "could we sell this place today for what they say it's worth." Maybe you could and maybe you couldn't, but that doesn't really matter. The issue is, what could you have sold it for in 2007 (at the height of our market)?
The two year lag served us well in times of rising prices. Now, not so much.
Here's the final kicker--in the pants, that is. The time for appealing your assessment is long past. You are allowed 60 days after the Notice of Value was sent out in June 2008--August 2008 was the deadline.
If you feel your assessment is terribly out of line, take a look at the Notice of Value you'll get this coming June. Anyone can go to the county assessor's web page: http://www.kitsapgov.com/assr/appeal/appeals.htm to find all the information you need to begin the appeal process next year. There's a link under "Sales" to all the recorded sales in specific areas and for different types of properties on Bainbridge Island (and the rest of Kitsap County.) Keep in mind that appeals for your 2009 assessment will need to cite comparable properties that sold in 2008.
My guess is that properties that are reassessed in value next year will see a drop, because we've seen a drop in the prices for the last eighteen months.
If you would like help compiling sold data to mount an appeal this summer, I'd be happy to be of assistance. Just give me a call or drop me an email.
Friday, February 13, 2009
Why making your home on Bainbridge Island makes sense~
Today's Seattle PI's front page has two lead stories, the first one saying we have a crisis in the housing market--not enough buyers: http://seattlepi.nwsource.com/business/399873_homeprices13.html.
The second one says we need to get ready for "climate refugees," people will who flood our shores looking for relief from global warming: http://seattlepi.nwsource.com/local/399958_climate13.html.
Interesting juxtaposition to ponder as I finish my second cup of coffee. It has been my experience that the Northwest as a whole and Bainbridge Island specifically appeal to people who are tired of heat, crowds, noise, ugly suburban cityscapes, crime, etc. Not to put a negative spin on it--I could say our temperate climate, peaceful, beautiful and safe surroundings are appealing.
Add to this Tom Friedman's column in this week's NYT:
http://www.nytimes.com/2009/02/11/opinion/11friedman.html
His point is that our country would benefit from opening its doors to the best and brightest from around the world, especially the Indians and Chinese who are seeking to bring their entrepreneurial and brilliant efforts to our shores. I have a son finishing up his MBA this spring, and he's seeing first hand the silliness of educating these bright, willing and able foreign students, and then shipping them back to build the economies of their home countries. It's about creating jobs, not competing for jobs. Look at Silicon Valley.
Back to Bainbridge Island and how this relates. We may be a small, rural place, but folks here live globally, both in their businesses and their philanthropic endeavors. I am Bullish on our long-term ability to be attractive to the best, the brightest, and the smartest folks who see this paradise for what it is.
The second one says we need to get ready for "climate refugees," people will who flood our shores looking for relief from global warming: http://seattlepi.nwsource.com/local/399958_climate13.html.
Interesting juxtaposition to ponder as I finish my second cup of coffee. It has been my experience that the Northwest as a whole and Bainbridge Island specifically appeal to people who are tired of heat, crowds, noise, ugly suburban cityscapes, crime, etc. Not to put a negative spin on it--I could say our temperate climate, peaceful, beautiful and safe surroundings are appealing.
Add to this Tom Friedman's column in this week's NYT:
http://www.nytimes.com/2009/02/11/opinion/11friedman.html
His point is that our country would benefit from opening its doors to the best and brightest from around the world, especially the Indians and Chinese who are seeking to bring their entrepreneurial and brilliant efforts to our shores. I have a son finishing up his MBA this spring, and he's seeing first hand the silliness of educating these bright, willing and able foreign students, and then shipping them back to build the economies of their home countries. It's about creating jobs, not competing for jobs. Look at Silicon Valley.
Back to Bainbridge Island and how this relates. We may be a small, rural place, but folks here live globally, both in their businesses and their philanthropic endeavors. I am Bullish on our long-term ability to be attractive to the best, the brightest, and the smartest folks who see this paradise for what it is.
Thursday, February 12, 2009
Windermere Real Estate dominates on Bainbridge Island~
I've just received the latest statistics showing market share on Bainbridge Island. My office, Windermere Real Estate/Bainbridge Island, Inc., has always dominated our market with solid, experienced, full-time professionals.
The new numbers show that the gap between our office and our nearest competitors is widening. In the month of January, the agents in our office were responsible for 42.9% of all closed sales in total dollar amount and for 42% of all units sold, including all types of properties on Bainbridge Island.
Why does this matter to someone looking for an agent? Because the current market is a tough place to be doing business. Sellers need an experienced, well-trained agent who can price their properties competitively, with full preparation and staging, and compelling marketing. Buyers need an agent who is on top of the market values, the latest legal developments, and who can make sure the financing and inspection procedures are properly completed and that the oversight of all terms of the contract are meticulously adheared to.
When an experienced agent performs these functions well, with strong relationship of trust with the client, the transactions will close and properties get sold. This is no time for trial and error.
The new numbers show that the gap between our office and our nearest competitors is widening. In the month of January, the agents in our office were responsible for 42.9% of all closed sales in total dollar amount and for 42% of all units sold, including all types of properties on Bainbridge Island.
Why does this matter to someone looking for an agent? Because the current market is a tough place to be doing business. Sellers need an experienced, well-trained agent who can price their properties competitively, with full preparation and staging, and compelling marketing. Buyers need an agent who is on top of the market values, the latest legal developments, and who can make sure the financing and inspection procedures are properly completed and that the oversight of all terms of the contract are meticulously adheared to.
When an experienced agent performs these functions well, with strong relationship of trust with the client, the transactions will close and properties get sold. This is no time for trial and error.
Current trends in residential real estate on Bainbridge~
We're almost half-way through February, so we have a pretty good idea of how the year is starting out. The news isn't as good as I'd like, nor as bad as I'd feared. Here is a link to the most recent Trendgraphix data and graphs for single-family homes.
http://www.trendgraphix.com/WAS/charts/Z110-01-01-01-0137-1-38-1B0507-200901.htm
The good news is that we're in a better place than we were a year ago. Twice as many homes are in contract and the number of solds is up 33%. Inventory is down. A year ago we had over 24 months of inventory, and that number is down to 15.7 months. The bad news for Sellers is that we are still in a massive Buyer's market and February has started out slowly. That being said, we're seeing good properties coming on the market, and Sellers are beginning to price homes where Buyer's will write an offer. One home waterfront home listed in our office received two offers this week.
We had a local mortgage broker speak to our office on Tuesday this week. Bainbridge Island remains with a ceiling of $417,000 for conforming loans, where the best rates are found. King County is up to $505,000, a fact that doesn't help us here. (The formula is based on median home price of the county, and we're lumped in with Kitsap, although our prices and demographics are more closely aligned with King.) The broker is showing a 30-year fixed rate of 5.375% with no points, and below 5% with the payment of a point. Owner occupied homes can be had with 95% down--something we thought and hoped would go the way of sub-prime lending.
Most of our buyers on Bainbridge have equity from prior real estate sales, which means that when their other property sells, they have over 20% to put down. A 20% down payment will get you a conforming loan on properties under $522,000. The median price of properties sold January 1, 2008, to today is $580,500, which means that more than half the properties sold would need more than 20% down to qualify for a conforming loan. Jumbo (non-conforming) loans are available from lenders like Washington Federal who make portfolio loans, and their rates range from 6 to 7.125 % or more.
The biggest news about residential real estate on Bainbridge remains the large inventory of unsold new construction. Here is the biggest "undropped shoe." With over 50 homes the builders need to sell, this could have a big impact on prices overall. Buchan Homes, a large corporate builder based on the Eastside, sold a home last week for $1,075,000, a $200,000 reduction from the last list price ( almost a 83.5% drop.) This home was listed over $1.6 million at one time. The large corporate builders can take these drops to unload their inventory. It will remain to be seen what effect this will have on appraisers and buyers. My prediction is that prices still have a way to go before we've reached the bottom.
http://www.trendgraphix.com/WAS/charts/Z110-01-01-01-0137-1-38-1B0507-200901.htm
The good news is that we're in a better place than we were a year ago. Twice as many homes are in contract and the number of solds is up 33%. Inventory is down. A year ago we had over 24 months of inventory, and that number is down to 15.7 months. The bad news for Sellers is that we are still in a massive Buyer's market and February has started out slowly. That being said, we're seeing good properties coming on the market, and Sellers are beginning to price homes where Buyer's will write an offer. One home waterfront home listed in our office received two offers this week.
We had a local mortgage broker speak to our office on Tuesday this week. Bainbridge Island remains with a ceiling of $417,000 for conforming loans, where the best rates are found. King County is up to $505,000, a fact that doesn't help us here. (The formula is based on median home price of the county, and we're lumped in with Kitsap, although our prices and demographics are more closely aligned with King.) The broker is showing a 30-year fixed rate of 5.375% with no points, and below 5% with the payment of a point. Owner occupied homes can be had with 95% down--something we thought and hoped would go the way of sub-prime lending.
Most of our buyers on Bainbridge have equity from prior real estate sales, which means that when their other property sells, they have over 20% to put down. A 20% down payment will get you a conforming loan on properties under $522,000. The median price of properties sold January 1, 2008, to today is $580,500, which means that more than half the properties sold would need more than 20% down to qualify for a conforming loan. Jumbo (non-conforming) loans are available from lenders like Washington Federal who make portfolio loans, and their rates range from 6 to 7.125 % or more.
The biggest news about residential real estate on Bainbridge remains the large inventory of unsold new construction. Here is the biggest "undropped shoe." With over 50 homes the builders need to sell, this could have a big impact on prices overall. Buchan Homes, a large corporate builder based on the Eastside, sold a home last week for $1,075,000, a $200,000 reduction from the last list price ( almost a 83.5% drop.) This home was listed over $1.6 million at one time. The large corporate builders can take these drops to unload their inventory. It will remain to be seen what effect this will have on appraisers and buyers. My prediction is that prices still have a way to go before we've reached the bottom.
Friday, February 6, 2009
A "moving" real estate metaphor learned on Bainbridge Island~
I started piano lessons a year ago. Last week my amazing and magical teacher Ann Strickland taught me something that has made playing both easier and more pleasant. The fingers of someone new to piano will often hover above the keys with a slight nervous twitch--where do I go next, where should I land? That was me.
What I learned last week was that the best players let their fingers lightly rest relaxed on top of the keys, playing the notes as they come. When it's time to move to another position or octave, the whole hand and arm move lightly and gracefully, fingertips again touching the keys. When I do this, I've found it amazing that the note I need next is so often is right under my fingertip. My stress has decreased and my playing is getting better!
I love metaphors and this one is one of the best for real estate. Too often we're living in our houses, but emotionally we're hovering just beyond making them our homes. Nervous, we're thinking, should I land? Is this house going up or down in value? Is it time to move? Where do I go next? Unpacked boxes clutter our garages and our thoughts and hearts are cluttered, too.
Here's my recommendation. Until you make a firm decision to move, settle in, make your house a true home, rest lightly there at peace. And when it's time to sell, a great real estate agent will help you have a graceful, grace-filled experience.
What I learned last week was that the best players let their fingers lightly rest relaxed on top of the keys, playing the notes as they come. When it's time to move to another position or octave, the whole hand and arm move lightly and gracefully, fingertips again touching the keys. When I do this, I've found it amazing that the note I need next is so often is right under my fingertip. My stress has decreased and my playing is getting better!
I love metaphors and this one is one of the best for real estate. Too often we're living in our houses, but emotionally we're hovering just beyond making them our homes. Nervous, we're thinking, should I land? Is this house going up or down in value? Is it time to move? Where do I go next? Unpacked boxes clutter our garages and our thoughts and hearts are cluttered, too.
Here's my recommendation. Until you make a firm decision to move, settle in, make your house a true home, rest lightly there at peace. And when it's time to sell, a great real estate agent will help you have a graceful, grace-filled experience.
Thursday, February 5, 2009
Land on Bainbridge Island~
My folks always believed in the value of land. I grew up on a farm that had been in the family since my great-grandfather homesteaded it in the 1800s, and I watched its value appreciate in my lifetime in an incredible fashion. "Take care of the land," my dad always said. "They're not making any more of it." True words unless you live where accretion makes you its lucky beneficiary--remembering always that Nature gives and can take away.
Here on our island rock, that's not likely to happen. The trees grow taller and the ocean's force is mostly tempered. Every so often the eastern cliffs along Puget Sound grow a little steeper, but satellite maps show clearly that we've been here since glaciers scraped their way south. (That's why our hills and valleys tend to run east to west. If you want a flat walk, head north or south.)
The value of vacant land on Bainbridge Island isn't doing very well right now, however. That's consistent with the trends, of course, but land is particularly struggling. I did a price analysis on some property this week, and decided that we've had so few sales that the only way anyone can gage the value of a piece of land is to see what shakes out in a negotiation.
The driving force for land sales on Bainbridge has always been builders looking for a place to build their next custom or "spec" home. For now, those days are over. Builders are unable to sell what they have built, and they aren’t buying land. The MLS shows over 40 homes currently listed on Bainbridge in various stages of construction. Some houses are being sold as is, only partially completed, and several more are being offered as presales. Other builders have put renters into their unsold properties.
A buyer for vacant land or new construction could do very well right now. Prices are low and dropping, and one builder is even offering to pay a buyer's mortgage for the first year.
Someday they'll be building more homes, but we still aren't making any more land. It seems like a good time to buy.
Here on our island rock, that's not likely to happen. The trees grow taller and the ocean's force is mostly tempered. Every so often the eastern cliffs along Puget Sound grow a little steeper, but satellite maps show clearly that we've been here since glaciers scraped their way south. (That's why our hills and valleys tend to run east to west. If you want a flat walk, head north or south.)
The value of vacant land on Bainbridge Island isn't doing very well right now, however. That's consistent with the trends, of course, but land is particularly struggling. I did a price analysis on some property this week, and decided that we've had so few sales that the only way anyone can gage the value of a piece of land is to see what shakes out in a negotiation.
The driving force for land sales on Bainbridge has always been builders looking for a place to build their next custom or "spec" home. For now, those days are over. Builders are unable to sell what they have built, and they aren’t buying land. The MLS shows over 40 homes currently listed on Bainbridge in various stages of construction. Some houses are being sold as is, only partially completed, and several more are being offered as presales. Other builders have put renters into their unsold properties.
A buyer for vacant land or new construction could do very well right now. Prices are low and dropping, and one builder is even offering to pay a buyer's mortgage for the first year.
Someday they'll be building more homes, but we still aren't making any more land. It seems like a good time to buy.
Tuesday, February 3, 2009
Great business plan discovered in Bainbridge Island business~
I just had a soul-satisfying moment sitting in the sun, surrounded by orchids and bromeliads, enjoying tea & friendship. Flowering Around, that Bainbridge Island long-time floral establishment, has a most glorious new spot on west Winslow Way, and they've expanded next door with a little tea and coffee shop, Flowering Around Espresso. The tea is lovely, the windows are huge and east-facing so you can do your best cat-like stretch into the sunshine if you're there early enough. The surroundings are the best part. I felt like Eve in the garden! Well, I was Eve in a garden of plants and glorious pots and other garden embellishments.
Remember what Hannibal Lecter said. We covet what we see. My former client and current BBF and I coveted the plants like mad. Before parting, we strolled through Flowering Around, resisting everything until I spotted a glossy lipstick plant in full bloom. I have the perfect place for it on my mantle where my left-over poinsettia refuses to die. Time for a swap.
So here's the best business plan of the week: $1.50 for tea, $24 for a take-home plant. I resisted the peanut butter cookies.
Remember what Hannibal Lecter said. We covet what we see. My former client and current BBF and I coveted the plants like mad. Before parting, we strolled through Flowering Around, resisting everything until I spotted a glossy lipstick plant in full bloom. I have the perfect place for it on my mantle where my left-over poinsettia refuses to die. Time for a swap.
So here's the best business plan of the week: $1.50 for tea, $24 for a take-home plant. I resisted the peanut butter cookies.
Monday, February 2, 2009
Lives and real estate coming out for some sun on Bainbridge Island~
There's something about a day in February on Bainbridge Island that dawns with the hope of sunshine. You believe spring will happen. You believe that the gray days, smudgy like yesterday's mascara, will bloom into full color.
I'm not alone. We don't have ground hogs on Bainbridge, but I'm seeing yards being raked and more folks out walking, their hair glowing with backlighting. Yes, the sun is still low in the heavens, as it is all winter long in the north, but the outdoors is calling to us who have been burrowed in for far too long.
The real estate market is showing signs of life, too (after being pronounced DOA for several months.) I heard some pundit say recently that the decline of real estate proceeded the huge economic crash, and its revival will proceed the general recovery as well. That would be good and I believe it to be true.
We still have a flatline "pending" statistic, and enough inventory to make this the strongest Buyer's market seen in over a decade. But, I'm also hearing Sellers get real about what their home will sell for and begin to understand that there won't be a quick fix. I'm hearing Buyers say, this may not be the bottom, but it's time to buy.
One thing that hasn't changed: Bainbridge Island is a wonderful place to call home.
I'm not alone. We don't have ground hogs on Bainbridge, but I'm seeing yards being raked and more folks out walking, their hair glowing with backlighting. Yes, the sun is still low in the heavens, as it is all winter long in the north, but the outdoors is calling to us who have been burrowed in for far too long.
The real estate market is showing signs of life, too (after being pronounced DOA for several months.) I heard some pundit say recently that the decline of real estate proceeded the huge economic crash, and its revival will proceed the general recovery as well. That would be good and I believe it to be true.
We still have a flatline "pending" statistic, and enough inventory to make this the strongest Buyer's market seen in over a decade. But, I'm also hearing Sellers get real about what their home will sell for and begin to understand that there won't be a quick fix. I'm hearing Buyers say, this may not be the bottom, but it's time to buy.
One thing that hasn't changed: Bainbridge Island is a wonderful place to call home.
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