Newsletter

JULY UPDATE

Conflicting reports from economists have kept buyers edgy. The potential expressed by some leading economists that we will see another 10 to 20% drop in home values over the next year has increased the low bids coming in on homes. Some price ranges are seeing few to no offers at this time. Now that the weather has improved, and summer is truly here we can hope that these numbers improve.

There are 355 homes currently on the market on South Whidbey. 13 sold in the last 30 days. The highest price being $771,000 on Edgecliff Drive in Langley. The average price being $391,000.

Two homes over a million dollars have sold this year . One no bank waterfront west facing at $1.62 and one 5 acres of southeast facing waterfront at 1.242.

I think these statistics show that the depressed economy in California and the lack of confidence in pricing has really kept things conservative to this point.

What do we do? We keep working to get property sold. We market, we send out information, we send out flyers, we contact other agents and your part is to keep your home ready for the buyer who might just decide the time is right now.

JUNE UPDATE

There have been recent headlines saying home sales are up and that we are now in a different market. However, this was not the fact if you took out the sales that were occurring because of the government tax credit program. Soon after this program ended the numbers changed. It is just now beginning to show in the numbers the public sees.

Mortgage applications to purchase a home began to sink as soon as the tax credit program was over. Applications are down nearly 40 percent from a month ago, to their lowest level since April of 1997. Interestingly, we have had successive weeks of historically low mortgage rates, and the trend to try to refinance is continuing to increase.

Another major problem which is showing up ; the fact that the recent housing cycle has brought long delays related to the short sales approval process by banks, and from on going appraisal issues. Many people drop out from the process because of these delays.

On South Whidbey there is a 20 month supply of homes to sell. this will make showings on your home if it is for sale seem low. You may think that something is wrong, But there are fewer buyers and more homes, which means less showings on many homes.

The good news has been about the programs the banks are putting forward to increase the amount of short sales, and reduce foreclosures. Bad news is that short sales are comps too, and they will bring down the value of properties around the short sale home. So there will be some frustrations in the near future with sales that require financing and consequently an appraisal.

What will really turn around the slow market on South Whidbey will be when the California market firms up and people who were planning to come to the northwest to retire are able to do so. Our 2nd home market is dependent on banks giving loans on vacation properties, and it is hard to speculate when that will ease up. Whether it will be in time to give us a turn around here on South Whidbey in the near future, we will have to wait and see.

If you are selling a home it is important that you do everything you can to make your home stand out. Price is always important and you must be competitive or you are wasting your time. Call me if you would like to discuss whether there may be some way to improve your chance of selling, and to review your price to be sure you are competitive.

If you are buying a home, lets discuss getting you pre-approved by a reputable lender. This gives you an edge when negotiating for homes today.

MARKET UPDATE AS OF JUNE 14 2010

ACTIVE Residential listings

South Whidbey 330
Central Whidbey 115
North Whidbey 341

Homes SOLD Since 05/14/10

South Whidbey total 15 over 1 mil sold 0
Central Whidbey total 7 over 1 mil sold 0
North Whidbey total 30 over 1 mil sold 0

Thanks for reading this month’s newsletter, and I look forward to hearing your comments.

MAY 2010 This month I am changing the format for my newsletter.

My goal is to bring you the best in information regarding our Whidbey Island real estate market, some informative real estate links to articles that I think may have an effect on buying and selling homes here, and some links and comments on “happenings” here on our island. If you have a property currently on the market you will continue to receive your personal update monthly on showings, advertising and hits to your property on the websites.

MARKET UPDATE AS OF MAY 15, 2010

Active Residential Listings:
So Whidbey – 297
Central Whidbey – 102
North Whidbey -306

Homes Sold (since Jan 1, 2010):
South Whidbey – 69 homes, over $1 mil – 3
Central Whidbey – 27 homes, over $1 mil – none
North Whidbey – 111 homes, over $1 mil – none

Median Price:
South Whidbey – $344,750
Central Whidbey – $207,000
North Whidbey – $236,500

All markets were greatly affected the first four months of this year by the Fed’s $8000 Home Credit which ended April 30th. As it has been for several years, housing remains one of the most troubled sectors of the economy. Outside the realm of real estate, many of the government banking programs created to deal with the crisis have ended, and credit markets have largely returned to business as usual.

It is too soon to see from statistics what the affect of the end of this program will be, but it will probably be quite significant in North Whidbey and South Whidbey. Banks are still offering competitive financing, and last week there were quotes from local banks and national banks for 30 yr fixed rates of 5%. However, the bar to qualify is set high, and credit rating and assets play heavily in your ability to get these good rates. If you are interested in hearing which banks are currently offering good financing let me know and I will send you a list to work from.

WINDERMERE

Have you used the new Windermere website? After many trials, and huge frustration from both customers and agents we now have a great product. I would love to hear what you think about it.

Next month, on June 18th is Windermere Community Service Day. The agents and management of the Langley and Freeland office will be working hard at Good Cheer in Freeland. Good Cheer asked us to please come back this year because we helped so much last year, and so that is the plan this year.

Windermere Foundation was honored today as part of the Top 25 corporate philanthropists among large companies by the Puget Sound Business Journal. We ranked #23 with an amazing group of companies like Starbucks, Weyerhaeuser, REI, Boeing and Microsoft. You can be proud that you are working with our team.

LOCKBOX NO LOCKBOX?

It is always a hard decision for sellers to decide on whether to put a lockbox on their home. From my experience, I can tell you that you do lose potential buyers by not having one. Why? When an agent puts together a list of homes to show they have a larger number to start with, which they try to bring down to just the ones they feel fit the buyer best. If a home needs another agent to open the door this cuts down on the chances of that home making the final cut unless this is a home the buyer has said is a home they must see. The added time in planning and executing may make seeing that home in the time allowed impossible. So for good reason the agent tries not to plan to see homes that will mess up the continuity of a tour.

Secondly, when you are driving buyers to see the selected homes, it almost always happens that they see a sign on a home they just have to see. When an agent checks and there is a lockbox, it is a quick call to the owner, and it is on the tour. If you need to have another agent present to open the door, and that agent is not ready to jump in the car and come open the door, then this potential sale is most likely lost.

Another thing. These boxes are very high tech. Your agent gets a beep whenever one of their lockboxes is opened. They can look then to see who, when, and how long. This gives you a long term list of who has been in the home for both security and to check to see how the viewings went.

I strongly suggest having a lockbox. I know from my 30 years of experience that this is a great tool for getting homes sold. Let me know if you need more information to make a decision for your home.

That’s it for this month. I look forward to your comments and suggestions. See you here in June!