The following is a brief analysis of the combined single-family home and condo market within Kitsap County, Washington for October 2008, provided by Rich Jacobson of Realty Executives Brio, in Silverdale, WA (this includes data for Bainbridge Island WA)

• Properties currently active on the market:  2599
• Properties closed in the last 180 days:  1386
• Average Sales Price:  $327,432
• Average List Price:  $338,006
• Ratio of List Price to Sales Price:  94%
• Average Days on Market:  101
• Sales Pending this Week:  13

Current Market Conditions: Area 150 (East Central Kitsap) and Area 166 (Poulsbo) share the highest ratio of List Price vs. Sale Price with 99%.  The lowest ratio was 93% for Area 161 (Hansville). Shortest Days on Market (DOM) was Area 149 (East Bremerton) at 74, and Area 166 (Poulsbo) coming in 2nd with 79. Longest DOM goes to Area 168 (Indianola) with 150, followed by Area 167 (Suquamish) at 126.

Bainbridge Island Stats separately: (Area 170)

• Properties currently Active on the market:  367
• Properties closed in last 180 days:  137
• Average Sales Price:  $697,159
• Average List Price:  $738,505
• Ratio of List Price to Sales Price:  94%
• Average Days on Market:  105
• Sales Pending this week:  0

According to a recent Kitsap Sun news article, home prices have dropped by 18% when compared to this time last year. However, pending sales experienced a very sharp 31% increase in the month of September, but don’t expect that to be as robust as we head into the Winter months.

For Buyers: While current market conditions obviously favor Buyers, obtaining loan approval can have its challenges. Meet with an experienced local Loan Officer first, to verify that buying a home is within your budget, and ensure that you qualify.

For Sellers: Sellers must be prepared to ‘pull out all the stops’ to be successful in selling their homes. You must be priced aggressively and prepare the house to show well. Consider incentives, like a Buyers Home Warranty plan. Consult with your Listing Agent to determine ways to make your home stand out from the crowd.

For more additional information and resources concerning real estate in Kitsap County WA and the Western Puget Sound, access my website, Kitsap Life.

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mortgage interest rate forecast

The relationship home owners need to grasp to understand interest rate predictions is the interplay between interest rates set by the Fed and mortgage interest rates charged by mortgage lenders.

Interest rates that are set by the Fed flow into the cost of funds to mortgage lenders. Banks and other lenders don’t possess all the funds they lend out when a mortgage is written - they borrow on the wholesale market 90% or more of what they lend out to home owners, at interest rates lower than the mortgage rates they charge home owners for their mortgages.

Banks make their profits from the difference between what they pay when they borrow money, and what they charge when they lend it out.

When the Federal Reserve lowers interest rates, it lowers the borrowing costs for financial institutions, so you would think that mortgage interest rate predictions would fall. However, financial institutions may choose not to pass on the savings to mortgage holders.

The reason for this is not greed - there is adequate competition in the mortgage lending market to ensure that no bank or other lender can profit unfairly. The real motivation is that being a bank that lends for mortgages just became a whole lot more risky, and risk tends to make banks raise interest rates.

Financial institutions are everyone more interest to compensate for their losses on the few who will miss payments on their mortgages.Until the current housing market settles, risks for lenders will remain elevated, and mortgage rates forecast will continue to be high.

The Fed can’t lower interest rates indefinitely. The actual interest rate (called the “nominal” rate) includes inflation. To find the “real” interest rate, you need to subtract the inflation rate from the nominal interest rate.

Today, when you do that, you get a negative number! This means that nominal interest rates are not even high enough to keep up with inflation.

Clearly, this is a situation that cannot continue for long. Sooner or later, probably sooner, the Fed will have to raise interest rates to at least break-even levels, matching the rate of inflation. As soon as it happens, the prime interest rate rise will flow through into mortgage interest rates. The only way is up for the mortgage interest rate forecast.

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Local Fishing and Boating Enthusiasts breathed a collective sigh of relief recently as the announcement was made that the seemingly ill-fated Olympic View Marina Project was revived from it’s death throes. According to reports in the Kitsap Sun, The WA State Department of Ecology formally approved the permit which allows the long-delayed demolition and construction work to finally commence.

However, the ultimate extent and scope of the project is still in question, pending a required amendment to the Kitsap County’s shorelines plan.

Evidently, back in 1976, for reasons no one seems to know, the surrounding shorelines were designated a ‘conservancy,’ and as such, prevents any expansion beyond the existing borders of the previous marina. The current development calls for a larger marina footprint and a much needed breakwater.

Fortunately, wiser and cooler heads at the Dept. of Ecology have prevailed. As quoted in the Kitsap Sun, Jeannie Summerhays, Director the the NW Region, stated, “Ecology has seen the benefits of this project from the time we first become aware of it. We thought a solution was possible, and I am pleased to we have arrived at one.”

When questioned about the pending amendment, Geoff Tallent, Manager of Ecology’s Regional Shorelines Section said, “We think an amendment makes sense and is consistent with the goals of the state Shoreline Management Act.”

To read the full story, go HERE.

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This coming Friday could be Doomsday for the long awaited and much-anticipated Olympic View Marina Project out in Seabeck.

How this has remained under my radar, I have no idea. Tonight, while taking a walk with my wife, I ran across fellow RE agent, Nick Blickhan (Nick and I had worked together at the Windermere office here in Silverdale).

As a waterfront resident of Seabeck WA, Nick has been keeping close tabs on the progress, or lack thereof, of the Olympic View LLC Marina Project. Four partners purchased the fledging property a few years ago, and put together a very detailed development plan. At considerable expense, they effectively jumped through each and every hoop that the County and State required, and in most instances, went way beyond what was necessary. From every indication, it appeared that things were moving forward, and the much needed marina would become a reality.

Unfortunately, due in large part to one lone, dissenting squeaky wheel, the ear of the WA Department of Ecology has been effectively bent, and it appears that the project is headed to a devastating demise. Evidently, the neighborhood squeaky wheel is one of these types who defines/measures ‘Smart’ growth by how far you can bury your head in the sand.

Nevermind that the dire needs of the many clearly outweighs the preferences of the few, or, in this case, the one.

Nevermind that the partners paid exceptionally close attention to detail in their plans towards maintaining and even enhancing the existing environmental integrity of the areas impacted by the proposed marina development.

Nevermind that the marina would have a very positive impact on the financial stability of existing Seabeck merchants/businesses, and long-term residential property values.

Nevermind that area boat owners would finally have badly needed basic marina services and mooring space available. The closest marina is Pleasant Harbor, over on the western side of Hood Canal, just south of Brinnon. You can moor your boat there, but it takes nearly an hour by car to get there.

The Olympic View Marina Project should make complete sense - ecologically, or otherwise. While it could be argued that some commercial developments are not necessarily environmental-friendly, this project clearly fulfills the demand for highest and best use. Although Kitsap County Commissioner, Josh Brown, has voiced his full support for this project, but his influence may not be enough to affect the outcome.

The WA State Department of Ecology is issuing their final verdict on the project this Friday. In my humble opinion, the Dept needs to step up and display some backbone. Rather than buckling under the incessant whining of one solitary voice, the project should be measured and approved on the merits of the significant positive impact it will have on the environment/habitat, and the true value that quality marina services will offer to our community.

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(For a complete list of the team rankings, GO HERE)

Our family knows several of the team players, like Little Dick, but one in particular is a very special friend, Josh Phillips, Owner/President of Ethos Builders in Poulsbo WA. Josh is good friends with our oldest son, Ben, and is married to Mallory (Gaboriault). Mallory’s parents live in the house behind us, and their dog, Prince, is on permanent loan to us.

Congrats to Josh and the rest of the team for such an amazing accomplishment!

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Now granted, my chosen profession in real estate isn’t helping matters any. The cyclical nature of our business is currently in the toilet bowl end of the cycle, so things are somewhat daunting, to say the least.

But there are other issues and concerns as well. The whole political upheaval and uncertainties associated with the pending presidential election; the rising cost of gas and its affect on our economy; the challenges with raising teenage boys, etc..

So the question is, how do you deal with the stress and hectic pace of life? Where do you find your oasis of solace and refreshment?

Well, for me, I spell relief C-R-A-B ….more specifically, by going out crabbing on my boat. There’s just something about being out on the waters of Hood Canal that instantly calms and refreshes my spirit and mind. It must be something innate or primordial within me. Or maybe it’s my Scandanavian roots. Who knows!

Whatever it is, it’s definitely something that works for me. I can be totally stressed out, nerves on edge, and feeling grumpy, but get me out on or near the water, and all the weight just falls away, almost immediately.

So what’s YOUR stress-buster? How do YOU spell relief?

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Okay, Sportsfans!

For an easy 500 points, what State in the US makes it illegal to walk across the road with a Duck on your head?

First 5 people to respond here with the correct answer, snag 500 ActiveRain points!

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The basic gist of my other article was that, given the numerous variables involved in a standard real estate transaction, that there are so many elements outside of my ability as a Real Estate Agent to control. Even though I may try to the very best of my ability to orchestrate a smooth deal, there are times when something goes south, and a contract falls apart.

It’s at times like this when you learn to appreciate the value that ‘other’ professionals bring to the table.

As a Buyer’s Agent, perhaps your most vital asset is a knowledgeable Mortgage Loan Officer. In today’s business climate especially, with loan underwriters tightening their requirements, and changing funding conditions mid-stream, it’s imperative to have someone who can stay on top of the almost ‘daily’ loan shifts, and resolve any issues quickly as their arise. Even some of the ‘cleanest’ files are now subject to intense scrutiny, and are in need of constant, diligent oversight.

The next major key to a successful transaction is the Real Estate Agent on the other side of the fence. While, as true professionals, we both understand that we owe our primary fiduciary/statutory duties to our clients, to solely represent ‘their’ best interests, we also strive to treat one another with honesty and respect. We both want to see our clients succeed, and achieve their buying/selling goals. As such, we both ensure that communication between our two parties is efficiently clear and prompt. Neither of us allows egos or attitudes to get in the way. We both understand the bigger picture, and work together towards that goal. We work collectively/cooperatively at resolving issues or potential problems.

I’ve found that a skilled Escrow Officer can make a huge difference in the process as well. Many times they have the ability to diffuse a potentially heated problem during the signing. They offer a very calm and reassuring presence to the equation. Their organizational talents provide for a more stress-free experience for our clients.

A qualified Home Inspector is also worth their weight in gold. You want someone who can effectively evaluate a home’s condition, and provide a detailed analysis of any discrepancies. A good inspector knows that he is under contract to the Buyer, and works for the Buyer, not the Agents. They can diplomatically point out any deficiencies that may exist with the home without unduly sabotaging the potential sale.

An effective Real Estate professional is like the conductor of a symphony, helping all the players to perform to best of their ability, but ensuring that they all follow a common score!

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