Real Estate Sounder

Graph of Home Sales, Prices & Trends for Kitsap County Jan 2011 through July 2012

{Note: In the event you got to this article from an older link, here is a link to the newest data for this category of monthly home sales in Kitsap County}

Home sales, prices and trends in Kitsap County for the month of July 2012 was almost a mirror image of the data for the month of June 2012.  I had to look twice just to make sure which month I was working on, because in almost every category including number of homes sold, days on market, the number of distressed properties sold, the number of REO’s & number of short sales, were all nearly identical between the two months.

The only place where there was a little variation between the months was in the Median selling price which dropped from $245,000 in June, to $241,000 in July.  There was also a slight decrease in the average asking price, and a very slight decrease in the average selling price, interestingly however; there was a slight increase in the average price at which an offer was received and there was a compression between the average initial asking price and the price at which an offer was received.  This price differential compression is showing up in multiple areas and I think is indicative of an improving real estate market, increased competition among buyers, and a general sense that properties are selling more quickly.   These factors are putting a bit more pressure on buyers to make stronger offers and identify homes of interest more quickly.

To quantify the other good news of a second sequential month of decreased distressed property sales:  There were 60 Distressed properties sold County-wide during the month of July 2012 which equates to approximately 21% of the homes Sold.  Of the distressed sales, 38 were REO (Bank Owned Foreclosures) and 22 were Short Sales.

In summary, July 2012 was another terrific month for home sales in Kitsap County and the trends show the real estate market is continuing to improve.

Thank you for visiting our blog.

–Brian Wilson, Broker

19723 10th Ave NE; Suite 200
Poulsbo, WA 98370

Graph of Kitsap County Single Family Home Sales, Prices and Trends June 2012

{Note: In the event you got to this article from an older link, here is a link to the newest data for this category of monthly home sales in Kitsap County}

Wow, the symmetry of this graph is amazing.  If you look at the period from January 2011 to June 2011 and compare it to January 2012 to June 2012, the relative symmetry of the number of homes Sold monthly is incredible and nearly identical.  In the last couple of months, however; the data appears to be making a break and heading into higher sales numbers compared with previous years.  I believe this shows a return to a more normalized housing market with normal seasonal real estate cycles.  The huge market gyrations created by the gov’t first-time home buyer tax credits which spurred major buying and then an end the program which then temporarily caused a major decline in demand is no longer reflected in the data or in the market.

The other very interesting fact that is not directly apparent on this graph, is the Median home selling price in Kitsap County for June 2012 was $245,000 which was almost identical to the Median home price from the same period one year ago.  The average price, however; for a home Sold in Kitsap during June was $296,489 which was up over 6% above the average for the same period one year ago and is near the highest level in more than 18 months.  The average selling price appears to be increasing, as sales of higher end homes are more than offsetting the lower priced sales.

With the improving local economy, low interest rates, and greatly improving demand, the downside risk to housing prices has largely been stemmed while the overall prices of homes have remained relatively controlled with only a minor increase in prices in certain areas and types of homes.  I believe prices will strengthen moving forward, so if you have been waiting, now is as good a time as there ever has been in recent memory to jump into the market.

More evidence to support my view is the declining sales of distressed properties (REO bank owned foreclosures, and Short Sales)  which comprised only 22% of the homes sold in Kitsap County during June 2012. It will be interesting to see if this trend continues.  If it does, we will quickly see a significant increase in average and median home sales prices.

If you are an investor, now is also a great time to be selectively acquiring all types of  rental properties, with multi-family properties in some areas being at the lowest level in years, and improving rental rates; the Cap rates and potential ROI, make investment Real Estate appear particularly attractive.

Thank you from visiting our blog.

Brian Wilson, Broker
John L. Scott Real Estate
19723 10th Ave NE; suite 200
Poulsbo, WA 98370

{Note: In the event you got to this article from an older link, here is a link to the newest data for this category of monthly home sales in Kitsap County}

Graph of Kitsap County Home Sales, Prices & Trends for May 2012

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