It was another great month for Real Estate Sales in Kitsap County where there were more homes sold during the month of May 2012 than at any time during the last 19 months.
While the number of homes sold was up, the average selling price and median selling price was down slightly compared with the previous two months. I believe this can mostly be explained from the following factors: With declining interest rates, we are seeing an increasing number of first time home buyers and buyers who can now qualify for loans and are looking for homes below the $200K price point. There is a continuing supply of lower-end and low priced Bank Owned (REO’s) foreclosures, many of which need rehab loans, or are significant fixers. Many of these properties are being snapped up by investors with cash for 60% or less, of the “as will be” rehabbed value. Bremerton and Port Orchard are the areas most heavily influenced with these types of properties and they are significant enough in volume that they are pushing down the average and median selling prices.
Looking at the entire Real Estate market in Kitsap, the activity and Sales have been increasing in all areas and price points, however; it is not the case that just anything sells…the market is not that hot yet. Properties must be well positioned and if they are, they receive offers quickly and we are frequently seeing multiple offers and even offers with escalation clauses.
If they are not well positioned and appealing on nearly every level, they will sit on the market and languish for months. A recent review by John L. Scott, showed that nearly 40% of listed homes in Kitsap were still on the market and unsold after 6 Months.
What this means if you are a Seller, is that your home must be: close to impeccable, well maintained with minimal deferred maintenance items, clean, easy to show and then be priced relatively compellingly. With professional and aggressive marketing and all of the “must have” items in place, you can expect an offer relatively quickly, i.e., less than 30 days.
If you are Buyer and you want to buy an impeccable, compelling home as described above, you need to be watching the market and be prepared to act quickly as soon as you see a prospective home hit the market. You must have your finances in order and when making an offer, be able to submit a pre-approval letter from the lender of your choice. Offers need to be stronger than we’ve seen in the recent past, meaning tighter time lines, fewer contingencies and closer to asking prices.
If you have any questions give us a call or send us an email, we’d be happy to talk with you about your particular situation and provide our best counsel.
Thank You for visiting our blog.
-Brian Wilson, Broker
John L. Scott Real Estate
19723 10th Ave NE; Suite 200
Poulsbo, WA 98370