According to the June, 2010 Kitsap Market Statistical Summary there were 1,297 closed sales of existing homes for the year ending 6/30/2010. In a separate study I discovered that a total of 708 of those closings were classified as bank owned properties or required third party approval (aka short sales). Let’s do the arithmetic. That is 708 divided by 1,297 or 55% of all sales were closed by these highly motivated sellers.

So what about sales that were not in the distressed category? Well, anybody selling in this market must meet the price competition. If non-distressed home sellers want to sell in this market they must meet the price competition by the banks. Why would any rational buyer pay more if there were a good supply of real alternatives at a lower price?

Of course this is good news for buyers. But there is even more reason for buyers to be interested now. As a broker I am constantly working with buyers in this market. At any given time I have 5-6 individuals or couples actively looking for the right home at the right price. As of the date of this post the mortgage lenders that I work with have been offering 30 year fixed rate loans with an annual interest rate of 4.5% and an A.P.R of 4.789%. What does this mean for a buyer?

I have connected to a video of a new recent new listing of mine in the Olalla area. This home has more than an acre of level, forested land for privacy, is tidy and comfortable as an enchanted cottage and is less than 15 minutes to the Southworth Ferry. The seller is not distressed but has moved out of the area.  This smart seller does realize that she needs to price it right and has done so.

If a buyer can qualify for the loan terms quoted above their payment on this home would be approximately $1,488.68 per month including principle, interest, taxes and insurance and would be fully paid in thirty years. Paying bi-monthly (twice per month) would accelerate the time to payoff. What’s more, in the current market that home would probably rent for about the same amount.

For someone in the 30% tax bracket the home interest deduction could be worth $360 per month. This means that a buyer is effectively paying only $1,128.68 per month.

Oh, and by the way, if you can qualify for VA or USDA Rural Development financing you could buy a home like this with zero down and ask the seller to pay for your buyers closing costs. If you could qualify for a FHA loan the down payment would be only 3.5%.

How much longer do you think that these historically low interest rates will stay low?

If you want a list of foreclosures in Kitsap or other homes that you can buy with zero down just click on the link. Or, if you have a friend or relative that is renting now and might like to “lower their payment” and live in a darn fine home, do them a favor and let them know what is going on. Just send them a message with a link to this article.

If you had an interest in looking at this home contact me at Kitsap Real Estate Advisor

So, what is the implication for Kitsap real estate and the state within which it is located? Here are some real estate facts recently issued by the Washington State Association of Realtors:

”

LOW FORECLOSURE RATE

Foreclosure rates today are the same as they were ten years ago. Fewer than one percent of mortgages end in default in Washington state. As of mid-June, adjustable rate loans represented 20 percent of loans nationally, but just 6 percent of home loans in Washington.

STRONG MARKET
Home appreciation in Washington continues to out-perform the rest of nation with regular price increases every quarter since the spring of 1995. Real estate has been, and will continue to be, stable long-term investments.

STABLE INVENTORY

The key to stability in the residential real estate market is balance – a six month supply of homes available on the market at any given time.

WHY WASHINGTON IS DIFFERENT

The home market is not keeping pace with the growth of the state’s population. The state’s population is projected to increase by nearly one million over the present decade and reach 6.8 million residents by 2010. Most growth occurs from within the state – not new residents relocating from other states.”

Buyers need not fear plummeting values if they buy today. Investors must move cautiously in the new market reality but opportunities abound for well constructed real estate investing.

It’s getting hotter in the downtown Port Orchard real estate community. A large number of downtown properties have changed hands, raising expectations to a fever pitch. Some of the longer term owners are taking measures to speed up the process. A revitalized downtown community has the potential to change South Kitsap drastically with broad implications for property values in the entire area.

Planning processes and political leadership can block or enable progress. Mayor Bozeman has made impressive progress in Bremerton. Elections for a new administration in Port Orchard are due this fall. Lary Coppola, a front-running mayoral candidate vows changes to assist in economic development. Stay tuned.

technorati tags:port, orchard, real, estate, kitsap, real, estate

Is it a buyer’s market or a seller’s market? Compared to the torrid
pace of 2005-2006 it has definitely moved toward the buyer’s position.
But wait, this article says that Kitsap Couunty real estate pricews
moved up 10%, year to year, from 2006 to 2007. Is that really a
“buyer’s market?. What do you think?

technorati tags:kitsap, real, estate, kitsap, county, real, estate

Council Digests Downtown Port Orchard Plan, a Detail at a Time – Kitsap Sun (Subscription)

technorati tags:port, orchard, real, estate, new, homes, in, port, rchard

New homes in Port Orchard are perhaps the most exciting opportunity for first time and move up buyers throughout the entire Puget Sound region.

Port Orchard real estate also known as South Kitsap real estate will likely be the focus for a number of major regional and national builders for quite awhile.

Take D.R. Horton, Quadrant Corporation and and Chaffey Homes for instance. They have tied up thousands of acres of Kitsap County real estate land with potentially more than 10,000 new home sites in an area that will be easily accessed from the I-5 corridor over the second Tacoma Narrows Bridge scheduled for completion later in 2007.

Greater Port Orchard also known as South Kitsap county is home to some 140,000 residents from the Pierce and Mason counties borders up to Gorst. In spring of 2007 there were approximately 164 new homes on the market immediately available for purchase with another 104 under contract.

Inthe last six months from roughly November 2006 through April 2007 217 new homes were sold at an average sold to list ratio of 100.3%.

Smaller builders offer very attractive semi-custom and custom home options on rural lots or in-fill lots that the larger homebuilders cannot manuever efficiently. Homes from these builders tend to be larger with larger lot sizes and are typically in-fill developments.

The larger builders have price on their side because they are often vertically integrated companies with resources from standing timber to the finished home and can slice a bit of the margin here and a bit of the margin there for impressive value delivered in large volumes.

Know your stats. That is the only way to have the knowledge to negotiate the right price for your new homes in Port Orchard.