GOOD NEWS STORY #1: Local Home SalesExperts remind us that one month does not make a trend, but we hadsome pretty good news in the March home sale numbers on Bainbridge. Of the 14 single-family home sales that recorded in March, four homesales were at one million dollars or higher and six sales were in the"dead zone" of $600,000 to $999,999. That means over 70 percent of all home sold on Bainbridge were pricedat $600,000 or higher. We had 33 sales so far this year compared with 34 last year.  Themedian home price (half sold for more, half sold for less) jumped fromjust under $700,000 last March vs. over $780,000 this March. Granted, median home prices are not very meaningful on amonth-to-month comparison basis, but it is still a very positivenumber. BOTTOME LINE: This is a very signific... 04/14/2009

Residential homes on Bainbridge Island were selling for a month end median price of about $825,000 at the end of March, 18% higher than a year ago. The three month moving average of closed sale prices ($609,667) is down 7% from a year ago. You can’t read too much into the apparent price rise - overall we think prices are still going down. However, the distribution of buyers has changed as properties in the higher price ranges are now selling. There are several factors - low interest rates, anxious sellers, and a slowly reviving market for jumbo loans all must be contributing to some extent. Kitsap County 3 month moving average median price has fallen 15% over the past year. The 3 month moving average number of Bainbridge closed sales is down 8% from a year ago, and the March number of p... 04/09/2009

Residential homes on Bainbridge Island were selling for a month end median price of about $455,000 at the end of February, a drop of 36% from a year ago. The three month moving average of closed sale prices ($477,167) has dropped 24% from a year ago. This substantial drop in median price is due not only to sellers lowering their price, but also because the distribution of likely buyers has changed. A primary contributor may be the higher interest rates and continued inability to sell jumbo loans (now exceeding $475,000 but previously exceeding $417,000 until last month). While the big banks are advertising a large interest rate premium for jumbo loans, local banks and credit unions are willing to make these loans for far less. Kitsap County 3 month moving average median price has fallen... 03/13/2009

  Here's an example of a reasonably well-priced home. This one sold February 17.A Manitou Beach (Bainbridge Island, WA) three-bedroom 2-bath 1800 square foot home on only .2 acres with a partial view of Puget Sound was listed 4 months ago for $595,000.After 3 months the price was lowered to $575,000. It sold a month later for $535,000.The home sold for 93% of the reduced price (90% of the original listing price).Would the home have sold more quickly if the price had been $575,000 originally? It's hard to tell, but this is an example of buyer and seller coming to a relatively quick agreement. The tax assessment was $300,000. 02/21/2009

Here's the second market chaser. A 1960 3 bedroom 1.75 bath large (3388 square feet) home on a half acre on rise Drive in Bainbridge Island. High bank waterfront with a view and a bulkhead. Time on market: 18 1/2 months, a long, long time, even in a slow market. Originally listed at $1,100,000. 2 months later, price drops to $999,000. 2 1/2 months later: $947,000. 4 months later: $899,000. 5 1/2 months later: $649,000. 4 months later: $550,000. 5 weeks later: sold at $425,000. Selling price 77% of last price drop. 38% of original listing price. The tax assessment: $757,040. Had the owner been carrying a large mortgage, the wait would have been very, very expensive. As it stood, the owner owed less than the selling price. 02/19/2009

  When a home is overpriced (usually at the insistence of the seller) and nobody makes an offer, the seller has three choices: leave the price as is, lower the price quickly, or take the home off the market. If the seller waits too long to lower the price, he is "chasing the market," as if the home grew legs and began to lumber after the retreating buyers, calling "Pick me, pick me!"  The idea is to attract the market, not chase it. If the home is priced correctly, the buyers will come. Sometimes it's the price, sometimes it's a combination (including seller financing, for instance). The last two homes sold in Bainbridge Island (February 11) chased the market.  The first, a 3-bedroom 2-bath home, built in 1988, offered 1965 square feet of living space on a shy half-acre in Manitou Beach... 02/17/2009

Rather than a long descriptive paragraph we are posting some graphs of the Bainbridge real estate market. With the median closed sale price in the mid $500k range, many Bainbridge properties have a very limited number of buyers because jumbo loans are difficult to obtain. Only homes at the low end of the market are moving so the median price is falling. Local savings and loans and credit unions offer the best terms for buyers needing a jumbo loan. 02/12/2009

  This week's pace, if it can be called a pace, is just slightly behind last year's activity during this time. Whatever else may be said, it is certain that the homes and condo that closed last week are no longer available to you.12 closings for single family homes, 1 condo closing Silverdale 2 homes, average market time 4.8 monthsPoulsbo 3 homes (1 presale)average market 9.3 monthsKingston 3 homes, average market time 10 monthsBainbridge Island 4 homes, average market time 5.6 months; 1 condo, market time 5.8 months The same period last year closed 13 homes and 1 condo Silverdale, 1 home on market for 3.3 monthsPoulsbo 6 homes (2 presale), average market time 6 weeks (hot!)Kingston 2 homes, average market time 6 monthsBainbridge 4 homes, average market time just over 8 weeks. 1 condo o... 01/22/2009

  Imagine a huge space where sellers waited to talk to buyers. Imagine further the perimeter of the space is lined with booths. Imagine the middle of the space packed with people with the means and desire to buy from these sellers. If you had neither the means nor the desire to buy, would you even want to walk in? Unless you loved the smell and sounds of crowds, probably not. Now imagine the same space. Same number of sellers. You now have the means and the desire to buy from a seller. Imagine further than many sellers are in competition with one another. And finally imagine the market floor is nearly empty. Wouldn't you want to walk around and negotiate with the seller of the product you're looking for?The space: Bainbridge Island and the Kitsap Peninsula. There are hundreds of sellers... 01/22/2009

Residential homes on Bainbridge Island were selling for a YTD median price of about $589,000 at the end of December, a drop of 13.4% from a year ago. The median price for closed sales occurring in December ($427,500) was down about 29% from a year ago. Like last month, this substantial drop in median price is due not only to sellers lowering their price, but also because the distribution of likely buyers has changed. A primary contributor may be the higher interest rates and continued inability to sell jumbo loans (exceeding $417,000). While the big banks are advertising a large interest rate premium for jumbo loans (for example, 30 yr fixed rate jumbo at Wells Fargo is 7.875%), local banks and credit unions are willing to make these loans for far less (for example, Washington Federal S... 01/19/2009

Cabin Fever After a week of heavy snow and a power outage, I found myself with a case of cabin fever. To fight it, I'm re-reading Blue Highways--for the fourth time. In its context I understand again the wisdom of my community to continue its fight against allowing Bainbridge Island to give into America's drive toward building the longest strip mall in the world. The world Heat Moon discovered in the seventies as he drove his old Ford Econoline around the back roads of America is probably gone by now. They exist now only in the pages of this wonderful account. I recommend it to you. I wish every American who can read would read it.  12/24/2008

Residential homes on Bainbridge Island were selling for a YTD median price of about $598,000 at the end of November, a drop of 12.6% from a year ago. The median price for closed sales occurring in November ($507,500) was down about 27% from a year ago. This substantial drop in median price is due not only to sellers lowering their price, but also because the distribution of likely buyers has changed. 13 of the 16 sales last month were for less than $650,000. A year ago only 8 of 19 closed sales were in this price range. A primary contributor may be the higher interest rates and continued inability to sell jumbo loans (exceeding $475,000). Kitsap County YTD median price has fallen 9% over the past year. The YTD number of Bainbridge closed sales is down 44% from a year ago, and the YTD nu... 12/13/2008

Emily Boberg-Courts is opening probably the most unusual fitness studio Bainbridge has ever seen. Ready? It's intended to teach Island women (sorry guys!) exotic dance and . . . wait for it . . . pole dancing. Yes! Pole dancing--but not the kind we used to watch at Bada Bing!--actual athletic pole dancing. Here's what Emily writes about the founder of Dolphin Dance and what she intends to do in the coming years. "Kristen Titko, the creator of Dolphin Dance, has been dancing for over 30 years, and Exotic/Pole dancing since 1990. She studied Ballet, Jazz, Modern Dance, and Gymnastics. Kristen became an exotic dancer while attending college and pursuing a career in acting and modeling. She was featured as a pole dancer in the hit movies Showgirls, and Exit to Eden. Her career came to a scr... 11/21/2008

Residential homes on Bainbridge Island were selling for a YTD median price of about $608,500 at the end of October, a drop of 10.5% from a year ago. The median price for closed sales occurring in October ($620,000) was down about 18.6% from a year ago. Kitsap County YTD median price has fallen 9.5% over the past year. The YTD number of Bainbridge closed sales is down 48% from a year ago, and the YTD number of pending sales is down 38%. These numbers have improved slightly as the in the past couple months. The number of closed sales is down 24% Countywide from a year ago. The number of active listings on Bainbridge (241) is down 2% from a year ago. The inventory turnover (total homes on the market divided by number sold last month) is 24.1 months, a slowdown from the 14.8 month turnover ... 11/11/2008

  A lot of people who move to Bainbridge immediately propose that the Agate Pass Bridge be closed, if not destroyed. It's quiet on Bainbridge, and in fact the bridge makes it less of an island. There's a lot of traffic across the bridge, some drivers heading to the Bainbridge ferry to Seattle, others heading to the Kitsap or Olympic peninsula in the other direction.The bridge is a mixed blessing. Residents need not depend only on the Seattle ferry to get off the island (before 1950, it was either the main ferry or part of the mosquito fleet, small boats that stopped at various points on the island). But their connection to the rest of Kitsap County is also used by thousands of people travelling from Seattle to points west. 10/29/2008

Forbes magazine has a very good piece about how well Seattle will do compared with other places and came out with this list of cities that they believe will best ride out a recession: 1 Austin, TX 2 Oklahoma City, OK 3 Honolulu, HI 4 Portland, OR 5 Tulsa, OK 6 Virginia Beach, VA 7 SEATTLE, WA 8 Baltimore, MD 9 Boston, MA 10 Lancaster, PA Check out the story from Oct. 15 at http://www.forbes.com/2008/10/15/economy-housing-recession-biz-beltway-cx_jz_1015econocities.html 10/23/2008

3-hour clock class, Nov. 7, on Bainbridge: $15 Oct. 17, 2008 Class registrations are nearing the half-full point, so don't miss Dylan Chalk, local home inspector, is the lead instructor for this 3-clock hour class on "green" housing and how to add credible sustainability and energy efficiency features to your listings.  Course will cover: ·    Basic tenants and programs for new construction "Green Building" ·    Options for retrofitting existing homes·    How we can improve energy efficiency in our existing housing stock·    How to pick the "low hanging fruit" of residential energy efficiency Here is a video recap of what Dylan will cover in this 3-hour clock class for REALTORS:   If you can't see a video here, go to this link: http://www.youtube.com/watch?v=tUXr1H1kJEA 10/21/2008

Last year the Jumbo Loan market came to a screeching halt when the investor market for Jumbo loans disappeared and the difference between interest rates for a conforming loan and a Jumbo loan widened sharply. The Conventional Wisdom at the time was that the big banks would seize the opportunity to own this market and would have the best Jumbo loan pricing around. But what happened was something quite different: mortgage loan losses at the big banks began to quickly dull the big bank's appetite for Jumbo loans. Since Jumbo loan investors also disappeared from the market place, the big banks would have to add these loans to their portfolio and take on the risk themselves instead of passing the risk off to an investor. If a big bank was going to put a Jumbo Loan on their books, then by gol... 10/21/2008

Treasury yields where higher this week. The 10-Year Treasury Note closed the week at 3.98%, up 10 basis points from last Friday's close at 3.88%.  Mortgage rates this week once again departed from the trend of the 10-Year Treasury. Next week: Thursday will see a lot of financial announcements, from Jobless Claims to the Consumer Price Index and Housing Starts will be announced on Friday. The Dow Jones industrials, closing down 127 points on Friday, still ended a disastrous three-week losing streak with its best one-week gain in five and a half years, up 4.75 percent.  The three-month London interbank offered rate, or LIBOR, fell to 4.41 percent from 4.50 percent on Thursday, the fifth consecutive day of declines. This is the key indicator to watch because a decline means commercial cred... 10/21/2008

Wild swings are not limited to the stock market as mortgage rates also swung swiftly throughout the week, ending with an improvement versus last week. 30 Yr Fixed Rate conforming loans locally are in the 6.25% to 6.625% range depending 1 point to no points (along with other credit factors); 15 Yr Fixed also improved, now ranging from 6.125% to 6.50%.  ARMs continue to show a broad range with interest rates on 5 Yr ARMs ranging from 5.625% to 7.00%, depending on one point to no points.  SOME GOOD NEWS HERE: While Jumbo loans rates among local lenders are still frozen in the 8.00%s, there are some niche lenders offering some pretty great Jumbo rates: 30 Yr Fixed Rate Jumbo loan (up to $900,000) are as low as 7.00% with 1 point; 15 Yr Jumbo loan rate up to $1,500,000 is as low as 6.375% wi... 10/21/2008