Showing posts with label Quarterly Report. Show all posts
Showing posts with label Quarterly Report. Show all posts
Friday, April 16, 2010
Bainbridge Island condominium market showing signs of life, too!~
I had a friend and former client ask me how the condominium market looks on Bainbridge these days. There's lots of good news there. Most significantly, we currently have only 65 condos currently listed--that's down from 117 listed last summer. They range from $130,000 to $1.350 million on Shannon Drive. (There's also a boat slip listed for $76,000 which counts in the numbers as a condo.)
Even better news, as of this morning, we have eleven condos in contract with buyers. That's about double what we've been seeing in the last couple of years, and is welcome, to say the least. It's not surprising that the list prices are dropping in order to find the price buyers will respond to. I like to track original list prices and compare them to where the properties are listed when they get an offer. Condos currently in a Pending Status started with an average price of $516,000, but their average list price when the offers came in is $408,000. Days on market is consistently several months. For a condominium to sell quickly, it will have to be priced realistically at the time of listing, perhaps priced a bit below market, be in great condition, and listed in top showing condition.
We've sold 58 condos in the last year. With 65 currently listed, that means we have over a twelve-month supply, which is still solidly a Buyer's Market. The condo properties that have sold are averaging a selling price around 95% of the last list price, which is consistent with the residential/house market. It's unrealistic in this market to expect a full-price offer.
I think the best news for condominium owners who are thinking of selling is that residential properties--houses--are also selling now. Since most condominiums on Bainbridge Islandare sell to folks downsizing from houses with yards or large lots, it's great news that those properties are selling. We're starting to see a pool of ready buyers who have equity, good credit, but who know the market values and who will negotiate hard.
Wednesday, April 14, 2010
Bainbridge Island first quarter 2010 real estate report is looking up~
It's time to take a look at the real estate trends on Bainbridge for the first quarter of 2010. We've all been looking forward to this marker, to see what way the winds seem to be blowing for this new decade. The stats are in and here's the first look.
Positive sales indicators. I'm quite encouraged by the numbers from the first quarter of 2010. The month of March was the seventh in a row in which the number of closed sales surpassed the previous year’s. We ended the month with a whopping 57% more closed residential transactions (houses) than in March, 2009, (22 vs. 14.) This is an important market improvement that was seen island-wide across all types of real estate: condominium unit sales were up 50% (9 vs. 6,) and even land sales were encouraging (5 vs. 3.) Conventional wisdom would indicate that the number of sales must show stability and improvement before we can begin to claim any recovery. These latest stats are certainly pointing in that direction.
On the horizon. We get more good news when we look at homes under contract (pending sales.) We currently have forty pendings compared to 33 at this time last year. This signals that we'll have continued strength in closed sales, since we rightfully assume that most pendings will close. The inventory has grown some, but there is a nice balance between supply and demand. This greater inventory offers buyers more choices – essential in a weakened market – but not so many as to create a level of competition that results in severe downward price pressure. Most telling to me is the level of energy among the island's agents and brokers--we're busy, there's a positive buzz and we're excited to be able to help people again!
The money behind the market. We continue to see most of our activity in the upper and lower price points of our market--below $600,000 and above one million. Below $600k, buyers are often able to obtain a conforming loan (under $417,000,) which gives them a lower interest rate and less restrictive loan requirements. Also, we are seeing FHA loans being used, which have a ceiling of around $475,000 with a current 5.5% interest rate. We're also seeing some activity from the $8,000 tax-credit for first-time home buyers, although mostly from sellers who are seeking a "move-up" market. For high-end real estate transactions that exceed $1 million, we often see buyers offering all cash or large amounts of cash, requiring them to finance very little of the purchase. There's talk of interest rates continuing to rise, which could dampen the real estate recovery. The days of 4% loans may be over, but we've had years of a healthy real estate marketplace when rates are in the 6% range, and could do so again.
The low-down on prices. It's a hard pill to swallow, but we seem to have lost all the appreciation we built in the last several years. Our median price for homes right now is essentially at 2005 levels. From a seller’s perspective, that may be all right if they bought before then, and haven't refinanced. Folks who bought at the top of the market--between mid-year 2006 to 2007--are not able to recover what they paid, losing equity, and facing the risk of being "under water," owing more than they can sell their house for in today's market. We're still in a buyer's market, but prices are beginning to encourage people to buy. People who have been priced out of Bainbridge are seeing that now is a good time to make the move here. Folks who want one of our gorgeous waterfront or premier homes are deciding this is their opportunity.
Looking ahead. So where is all of this pointing us? Buyers are taking advantage of these favorable conditions and buying. Sellers have had enough time to adjust to the current economy, and are bringing their homes on the market at realistic prices. Our long-term regional economic and jobs forecast is positive. Bainbridge will always be one of the premier locales in the region, with one of the strongest housing markets. Time will tell how quickly our local recovery will take, but our current foundation is undeniably stronger than it’s been in recent years.
If you or someone you know is thinking of buying or selling, I would welcome the opportunity to chat and see how I can be of service. Also, I'm happy to simply draw up a current market price opinion for your home, with no obligation on your part, so that you can have a good sense of how the changes in our market have impacted your overall real estate portfolio. Just give me a call 206.713.7134. Cheers!
Positive sales indicators. I'm quite encouraged by the numbers from the first quarter of 2010. The month of March was the seventh in a row in which the number of closed sales surpassed the previous year’s. We ended the month with a whopping 57% more closed residential transactions (houses) than in March, 2009, (22 vs. 14.) This is an important market improvement that was seen island-wide across all types of real estate: condominium unit sales were up 50% (9 vs. 6,) and even land sales were encouraging (5 vs. 3.) Conventional wisdom would indicate that the number of sales must show stability and improvement before we can begin to claim any recovery. These latest stats are certainly pointing in that direction.
On the horizon. We get more good news when we look at homes under contract (pending sales.) We currently have forty pendings compared to 33 at this time last year. This signals that we'll have continued strength in closed sales, since we rightfully assume that most pendings will close. The inventory has grown some, but there is a nice balance between supply and demand. This greater inventory offers buyers more choices – essential in a weakened market – but not so many as to create a level of competition that results in severe downward price pressure. Most telling to me is the level of energy among the island's agents and brokers--we're busy, there's a positive buzz and we're excited to be able to help people again!
The money behind the market. We continue to see most of our activity in the upper and lower price points of our market--below $600,000 and above one million. Below $600k, buyers are often able to obtain a conforming loan (under $417,000,) which gives them a lower interest rate and less restrictive loan requirements. Also, we are seeing FHA loans being used, which have a ceiling of around $475,000 with a current 5.5% interest rate. We're also seeing some activity from the $8,000 tax-credit for first-time home buyers, although mostly from sellers who are seeking a "move-up" market. For high-end real estate transactions that exceed $1 million, we often see buyers offering all cash or large amounts of cash, requiring them to finance very little of the purchase. There's talk of interest rates continuing to rise, which could dampen the real estate recovery. The days of 4% loans may be over, but we've had years of a healthy real estate marketplace when rates are in the 6% range, and could do so again.
The low-down on prices. It's a hard pill to swallow, but we seem to have lost all the appreciation we built in the last several years. Our median price for homes right now is essentially at 2005 levels. From a seller’s perspective, that may be all right if they bought before then, and haven't refinanced. Folks who bought at the top of the market--between mid-year 2006 to 2007--are not able to recover what they paid, losing equity, and facing the risk of being "under water," owing more than they can sell their house for in today's market. We're still in a buyer's market, but prices are beginning to encourage people to buy. People who have been priced out of Bainbridge are seeing that now is a good time to make the move here. Folks who want one of our gorgeous waterfront or premier homes are deciding this is their opportunity.
Looking ahead. So where is all of this pointing us? Buyers are taking advantage of these favorable conditions and buying. Sellers have had enough time to adjust to the current economy, and are bringing their homes on the market at realistic prices. Our long-term regional economic and jobs forecast is positive. Bainbridge will always be one of the premier locales in the region, with one of the strongest housing markets. Time will tell how quickly our local recovery will take, but our current foundation is undeniably stronger than it’s been in recent years.
If you or someone you know is thinking of buying or selling, I would welcome the opportunity to chat and see how I can be of service. Also, I'm happy to simply draw up a current market price opinion for your home, with no obligation on your part, so that you can have a good sense of how the changes in our market have impacted your overall real estate portfolio. Just give me a call 206.713.7134. Cheers!
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