First Quarter 2020 Review – Bainbridge Market

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First Quarter Review 2020 & COVID-19

Discussion about the Bainbridge housing market and the economy in general in the first quarter of this year is almost meaningless due to COVID-19. It did not really impact the first quarter market much at all. The data you see here regarding housing activity will be quite different by the time we report on the second quarter in July. Additionally, the high-end market has remained very active. Our lack of inventory still creates many multiple offer situations in homes under $1M.

From this first-quarter review, you can see that the median sale price has gone up 4.3% year-over-year and the number of transactions went up 31% year-over-year. However, as I said before, a look at the first quarter means very little since our situation has changed drastically since then.

first quarter review 2020 graphs

Graphs were created by Windermere using NWMLS and Trendgraphix data for area 170 but the information was not verified or published by NWMLS or Trendgraphix. Market Share Data reflects all types of properties sold calculated on May 6, 2020. Companies not shown represented less than 2% of buyers and sellers.

What We Anticipate in the Months Ahead

The national and state housing markets were in good shape before the virus hit. We anticipate that they will be in good shape again, once we come out on the other side of this. When the economy opens up again, we foresee a rapid climb in the housing market volume. This will put upward pressure on prices again.

Windermere’s Chief Economist, Matthew Gardner, discusses the economy and job growth in relation to the housing market.

economic data 2019 bainbridge island vesna somers

The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Are you interested in buying or selling on Bainbridge Island or in Seattle, WA? You’re welcome to contact me. I have decades of experience and I’d love to help you achieve your real estate goals.

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Posted on May 14, 2020 at 5:26 am
Vesna Somers, JD | Category: Market Information | Tagged , , , , ,

Bainbridge Residential Market: 2019 Data and 2020 Forecast

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Bainbridge’s Residential Market: 2019 in Review

I’m often asked about the current state of affairs in Bainbridge’s residential market…whether or not it’s a good time to list your home or buy a home. For perspective, it’s a good idea to take a look at what happened last year and what the projection, while not an absolute certainty, is for this year. Inventory is very low on the island, and there is a great deal of buyer demand. So yes, it’s absolutely a good time to list while there is little competition among sellers to get their home noticed. At the same time, it is a good time to buy with the record low mortgage rates versus high rental rates.

economic data 2019 bainbridge island vesna somers

Graphs were created by Windermere using NWMLS and Trendgraphix data for area 170 but the information was not verified or published by NWMLS or Trendgraphix. Market Share Data reflects all types of properties sold calculated on January 10, 2020. Companies not shown represented less than 2% of buyers and sellers.

Our 2020 Real Estate Forecast

Wondering what to expect for our market this year? Worried about the talk of a recession and how it will impact your buying or selling potential? Windermere’s Chief Economist, Matthew Gardner, gives his data-driven take on it all.

 

Understanding Our Current Residential Market

The market continues to benefit from low mortgage rates. The average 10-year fixed rate is currently around 3.6% and it is unlikely to rise significantly anytime soon. Additionally, borrowing cost remains very competitive. However, buyers are not necessarily jumping at any home that comes on the market. They have become increasingly price-conscious and the slowing home price growth reflects this.

economic data 2019 bainbridge island vesna somers

The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

If you’re interested in buying or selling on Bainbridge Island or in Seattle, WA feel free to contact me. I have decades of experience and I’d love to help you achieve your real estate goals.

vesna somers managing broker

Posted on February 21, 2020 at 6:39 pm
Vesna Somers, JD | Category: Market Information | Tagged , , , , ,

Bainbridge Market Update and Real Estate Excise Tax Change in 2020

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As 2019 comes to a close, here’s a look at our local real estate market for Bainbridge Island, Washington. I also want to take a moment to mention the upcoming change to Real Estate Excise Tax (REET) for Washington state. If you’re thinking of selling property in 2020, it may impact you.

Bainbridge Island’s Current Market

This snapshot shows year-to-date residential market information as well as how our market has changed from 2018 to 2019. The 31% increase in median sales price is certainly noteworthy, as is the average sales price, which has gone up by 34.6%.

bainbridge market update 2019

Real Estate Excise Tax Change in 2020

Washington state’s Real Estate Excise Tax (REET) is changing to a graduated system in 2020. Real Estate Excise Tax is a tax on the real estate sale and it is typically paid by the seller. Will this new system impact you if you decide to sell your property in 2020? Here’s Windermere’s Chief Economist, Matthew Gardner explaining what this change means and who exactly will be impacted.

The New Tiered System for REET

Currently, there’s a flat rate excise tax of 1.28% with municipalities adding their own tax on top of the state tax. In general, cities add 0.5% so the total becomes 1.78%. With the new legislation, the tiered system will look like this.

windermere real estate excise tax 2020

If you still have questions or want to discuss your options, let’s set up a time to talk. I’m happy to discuss this further and provide any assistance you may need.

Posted on December 6, 2019 at 10:06 pm
Vesna Somers, JD | Category: Market Information | Tagged , , , , , , , , , ,

Tackling Homelessness and Our Fall Market News

 

Partnering with the Seahawks to Tackle Homelessness

We’re proud to be the Official Real Estate Company of the Seattle Seahawks and we’ve partnered with them for a 4th year to help address homelessness through our #TackleHomelessness Campaign. For every Seahawks defensive tackle during a home game, Windermere donates $100 to Mary’s Place, which provides shelter, resources, and meals to families on their journey out of homelessnessAs of Oct. 21st, we’ve raised $113,100.

The Fall Real Estate Market Cool Down

Summer brought significant sales but now we’re starting to see a seasonal slowdown. While the market still favors sellers, it is shifting overall toward a more balanced market.
  • In the last 9 months, single-family homes have sold for an average of $1,019,444. That’s a 1.6% increase from the same time period in 2018, showing how our robust regional economy positively impacts prices.
  • Local agents have sold 288 residential homes through Sept. and 116 of them were sold during the summer. The market did heat up, but when comparing this time period to last year, that’s a 10% drop in homes sold.
  • The 3rd quarter absorption rate (the rate at which available homes are sold each month) was 42.1% for single-family homes, a 13.2% decrease when compared to last year’s 3rd quarter.
  • As of Sept. 30th, there were 80 active listings. Compared to Sept. of 2018, that’s an 11% decrease. But the number of homes sold in Sept. went up by 3% year-over-year and the number of pending sales increased by 6.5%.

bainbridge real estate Q3 market graph

A Look at Condominium and Land Sales

In the condominium market, 78 units have been sold so far this year. When we compare that to 2018, it’s a 21% decrease in units sold. However, September’s average sold price was $629,000, which is a 23.3% increase year-over-year.

Regarding land sales, the average sold price in September was $241,000, a 56.2% drop from September of 2018. But 12 lots were sold during the 3rd quarter this year while only 3 lots were sold during that quarter last year. Land still tends to sell quickly if there aren’t any major issues.

Why a Local Realtor Makes a World of Difference

Your local Windermere Realtor® is the key to success. They use their expertise, industry connections, and data-driven strategies to appropriately price your home. With the right realtor, your property will resonate with the educated buyer and a local realtor understands the nuances of the island’s market.
Online search engines and agents who aren’t familiar with the island tend to have a cookie-cutter approach to our listings. They often use estimates and price per square foot. But each property on Bainbridge Island tends to be quite unique. With a resident market expert, you can increase your chances of selling your home faster with the possibility of more than one offer.
If you’re thinking of buying or selling, let’s discuss your options.
Posted on October 30, 2019 at 10:17 pm
Vesna Somers, JD | Category: Newsletter | Tagged , , , , ,

Our Summer Bainbridge Market News

Sunny Skies For Our Summer Bainbridge Market

This summer, our Bainbridge market has really picked up in the last couple of months. Inventory is getting snatched up quickly and there are often still multiple offers, though that’s not as frequent as it was in the past.

  • Local agents have sold 183 single-family homes so far this year.
  • Of those, 133 were sold in the 2nd quarter, up 3.9% year-over-year.
  • In the last 6 months, single-family homes have sold for an average of $1,017,667 up 2% year-over-year.
  • June’s absorption rate (the rate at which available homes are sold each month) for all properties was 42.7%, down 26.7% year-over-year, indicating a change toward a balanced market.
  • As of July 1st, there were 112 active listings. This is the most we’ve had in the past 5 years at this time. We also have the fewest pending sales (currently 48), so there’s more inventory and fewer sales. Let’s see if this trend continues with consistency toward a market shift.

Buyers are often more selective so understanding their expectations and Bainbridge’s current pricing is important. Many buyers are looking for homes that are in pristine condition. That’s why it benefits you to work with an experienced agent who can guide you through the process.

windermere bainbridge for sale and sold trendgraphix june 2019

The Latest on Condominium and Land Sales

While the condominium market has softened, we’re still seeing significant sales with 50 units sold so far this year. June’s average sold price was $491,000. When it comes to land, if it isn’t encumbered by easement issues or similar challenges, then it tends to sell quickly. The average sold price for land in June was $247,000, which is a 51.5% decrease year-over-year. However, my colleagues and I are seeing more activity on vacant land; in June alone, 3 lots were sold and 11 went into pending status.

Moving Toward a Balanced Market

Windermere’s Chief Economist Matthew Gardner anticipates that we will begin to move toward a balanced market. In the past two decades, prices have either been skyrocketing or crashing. “Many [home buyers and home sellers] have never seen a normal market,” Gardner explains. “From a home seller’s perspective, they still have very heady expectations as to what their homes are worth…that needs to be tapered down a little bit. From the home buyer’s perspective, they’re seeing more choice now than they’ve seen in several years.” Despite what some media outlets say when analyzing shorter term averages, it is still a seller’s market and Gardner expects that “home price growth will continue but at a more modest pace.”

If you can dream it, we can find it.

Whether you’re thinking of buying or selling, I’m here to assist you. I can provide you with a wealth of information, from market trends and pricing to local schools and resources.

Check out my active listings or my sales portfolio.

When you’re ready, I’m just a click or a call away.

 

Posted on July 17, 2019 at 9:48 pm
Vesna Somers, JD | Category: Market Information | Tagged , , , ,