Kitsap Real Estate Blog

Why Buyers of Homes In Kitsap Can Expect Good Opportunities

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Trends for residential sales are not yet breaking positively for Kitsap County. The active listing inventory of homes in June 2010 was at 1,879 versus 1,758 for June 2009. Median asking price was $319,000 compared to $350,000 one year ago. Median days on market was 126 for June 2010 versus 133 one year ago.

The number of pending sales was 239 in June 2010 and 372 in June 2009. Their respective ratios were 13% and 21% showing a precipitous drop. Pending sales ration are near term indicators of sales activity and the near term direction of price trends. The median price for pending sales for June 2010 was $265,000 and $246,125 a year ago. This is a sign perhaps of increased activity in move up sales. Days on market was 107 for June 2010 and 86 for June 2009.

Closed sales in June 2010 were up slightly for June 2010 at 266 units vs. 249 for June 2009. There is a more impressive difference in the Year To Date tally with 1,297 for YTD 2010 and 1,090 one year ago. The median closed price was $236,000 in June 2010 and $245,000 in June 2009. Days on market were 156 in June 2010 and 83 in June 2009.

This is likely because the lid has come off prices asked by lenders for foreclosures in Kitsap and short sales. I guess so when you consider that in the last twelve months the number of closings tagged as bank owned properties and third party approval required totaled 627 or 48%. Sure looks like those lenders are setting the price for everyone else.

Home Loan Rates Are At Record Lows.

Loan rates available to qualified buyers on July 15th, 2010, even those with zero down were between 4.5% and 4.75%. This means that if you were to obtain a loan for the median priced closed home in Kitsap in June, 2010 for $236,000 for 100% of the purchase price that your payment of principle and interest for a 30 year fixed rate loan would be $1,195.78. Throw in $300 per month for taxes and insurance and that might be say $1,496 per month for your housing expense which is about the same rate you would need to pay in rent for most of these homes selling at the median.

These are truly unusual times for buyers. How much longer will this perfect storm of conditions last?