Bremerton, WA

During the month of January there were 42 homes that sold in Bremerton. [zip codes: 98310, 98311, 98312, 98314, 98337]. That is 40 homes less than December 2009. Not a good start to 2010! These Bremerton homes actually had a transfer of home ownership. Contracts complete and Lender funds available the home buyer and seller signed all of their documents as escrow prepared the closing packages. Once all the I’s were dotted and the T’s crossed there where deeds recorded at the Kitsap County courthouse that transferred the property into the new home owner’s name!

If you want to learn more about how we transfer property in Washington State a really great site to visit is the Escrow Association of Washington site. There you can find definitions and explanations of the home buying process for Bremerton Washington.

Let’s look at those 42 Bremerton homes -

Average List Price

• $203,640 [$224,396 December]
• $130

Average Sold Price

• $201,166 [$218,171 December]
• $129

The average sq ft of these 42 Bremerton homes was 1623 sq ft. These homes spent an average of 94 days on the market (DOM).

The list to sale ratio for these homes was 98.83 percent. What that meas is that buyers offered 98.83% of what the seller requested.

Not a bad time to purchase a home in Bremerton, Washington. Prices are down, interest rates are at an all time low and with the incentives from the government you might want to look at what it means to you. In fact it is a great time if you are a 1st time home buyer and qualify for the $8,000 tax credit – CREDIT! NOT loan! Read the information I have written about the program here

It is finally official. The hombuyer’s tax credit has been extended to April 30, 2010

What do these numbers mean? Is it a good time to buy? Is it a good time to sell. It all depends on your individual situation. I would rather buy in a buyers market and I would rather sell in a buyers market if I have to buy another home with the proceeds. I am a fan of the NORMAL market – everyone can feel more comfortable and real estate transactions are not as stressful.

So what is the absorption rate at this point in time? Check here for the definition of absorption rates - Absorption Rates

Using the formula and only including active and contingent homes on the market the absorption rate for January would be 10 months - ouch! We had been down to 5 months in the last quarter of 2009. Of course remember we are looking at a trend, so as we go through 2010 we will get a better picture. Hopefully, low number of closings in January is not a trend. If we included the pendings the absorption rate would jump to 13 months of inventory!

If you would like to find out the value of your home please feel free to contact me via phone or email. I would be more than happy to supply you with a FREE Market Analysis.

If you would like to purchase a home in the Kitsap County Real Estate Area please give me a call or contact me via email. We can discuss your future plans and I can set you up on an email campaign to receive the hot new listings quicker than YOU can find them.

Bremerton Real Estate 2009 Market Reports

Maybe you are on the fence. Maybe you just can't decide if you want to purchase now. Maybe you are thinking that the market hasn't bottomed out yet so you are going to wait. Maybe...

If you are on the fence even with the $8,000 First-time home buyer tax credit, even with historic low interest rates, even with lower prices, the new proposed FHA Policy Changes just might help you make a decision. That and predicted higher interest rates.

Over the last couple of years we have seen almost every loan program disappear with a blink of an eye. I think there are two zero down programs left - VA and USDA. Of course with both of these programs there are requirements you must meet and the for USDA the property must meet.

Then you have a conventional loan program which usually will require a 20% down-payment and then the FHA program - the program most of your parents used to purchase their first home. Back in the day it was the only program for those that didn't have much for a down payment and even less for closing costs. As home prices increased so did the percentages of down payment/costs.

Today, for most first-time home buyers FHA is the most used product. Which of course has changed a little in the last year. The down payment required was 3% and is now 3.5%. Not too bad of an increase, but an increase. But coming this spring you might see some huge changes that will really impact your out of pocket expense. You can read all the changes here - Announced FHA Policy Changes.

These are the changes that are really going to effect the amount of money you need to close and will also effect your monthly mortgage payment.

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending

• The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
• If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
• This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
• The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Reduce allowable seller concessions from 6% to 3%

• The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
• This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

To make things even scarier come April 1st the Federal Reserve is suppose to end its debt purchase program and allow the US mortgage market to operate unassisted. Some speculators believe that mortgage rates will rise about 3/4 of a percent to about 6%. I have seen those that think the rates might go higher. Who knows? There is no real estate crystal ball. But let's say that the rates do rise to 6%, your purchase power is really jolted. On a $200,000 home your payment could increase around $90.00! That is $1080.00 per year.

Don't loose the purchase power you have now.

Homes in Bremerton

—newly proclaimed the “Metropolitan Center of the West Puget Sound” is the largest city in Kitsap County located on the Beautiful Kitsap Peninsula between the majestic Olympic and Cascade Mountain ranges in Washington State.

The Bremerton area offers some of the best views of mountains and water as well as some of the best boating and recreational opportunities in the Greater Puget Sound Area. Within a mile radius you will find several attractions and facilities to visit and explore. Welcome to the Kitsap Peninsula.

The cities vision and optimism has given the residents and small business owners a much needed boost of confidence in the rebuilding of the once grand downtown Bremerton.

Bremerton is divided by the waters of Port Washington Narrows into what the local residence refer to as East Bremerton and West Bremerton. The areas are connected by the Manette and Warren Avenue bridges. Bremerton is a city of history and can boast many unique neighborhoods, such as Manette, with its art culture/Bohemian appeal in East Bremerton; Charleston, a back to yesteryear section of the city filled with some 1930 charm, and several others that will have you admiring rows of waterfront homes on the shoreline or looking to neighborhoods that will remind you of your childhood.

Bremerton has it all. With home prices considerably lower than on the Seattle side of the water and yet still being able to offer amazing water and mountain views, it is no wonder that Bremerton is a community that can attract those that work in Seattle.

Along with affordability Bremerton offers many cultural programs. The Bremerton High School complex has a modern performing arts center and provides a venue for theater, opera, dance and the Bremerton Symphony. Bremerton isn’t “your Dad’s Navy town”.

Yes, I would say Bremerton residents have it all. We have an amazing community that can brag of a close knit small town feel all the while being able to enjoy the big city lights of Seattle via a relaxing, scenic ride on part of the largest ferry system in the country.

Bremerton – where you can walk the shoreline, watch eagles fish, watch whales play in a nearby inlet and where you can be in the Mountains or at the Beach in around an hour if you don’t stop and smell the flowers along the way.

Bremerton has been ranked by Money Magazine as one of the future hot spots among cities with under 250,000 residents. In 2002, Bremerton was listed as the eighth-best place in the West to live among population areas from 100,000 to 249,999.

Homes in Bremerton

While sale numbers for 2009 were stronger than 2008 it is still too soon to say the market has bottomed out. We still have an issue with the many short-sale properties on the market that may lead to more foreclosures.

I think the market is trying to recover but with the number of short sales and foreclosures that are expected to grow in 2010 and 2011 it will be a struggle. Unless we can get banks to price their properties at current market value they will continue to drag the market down.

Currently in the Bremeton home market there are 59 short-sales and 36 foreclosed on homes for sale. This represents 22% of the total inventory which is 425 homes on the market.

Here is a quick snap shot of the first two weeks of the new year - 2010. These figures are for all addresses in Bremerton or zip codes 98310,98311,98312,98314 and 98337.

Pending BU Requested (Seller has accepted an offer but is still looking at other offers to go into a Back Up position in case the first offer fails to close - used by agents in most Short Sale situations)

8 homes | 4 are Short Sales | Average List Price $216,294, 1760sq ft, 135 days on market.

Pending Inspection (Seller has accepted an offer which is subject to an inspection by the buyer. Once the buyer preforms the inspection and both parties come to terms with the findings this property will then either go pending or bank on the market)

15 homes | 1 is a Short Sale and 5 are Bank Owned | Average List Price $236,186, 2213sq ft, 109 days on market.

Pending (Seller and buyer have agreed on all terms, have preformed all duties and are headed to the closing table)

14 homes | 1 is a Short Sale and 6 are Bank Owned | Average List Price $216,382, 1649sq ft, 147 days on market.

Sold (Yippee! These homes have went through the sales process and ownership has changed hands. The sellers have received funds and the documents have been recorded at the Kitsap County courthouse. The buyers have now become the new owners and received the keys to the property!)

17 homes | 5 were Bank Owned | Average List Price $199,871, 1715sq ft. Average Sale Price $199,629 with 78 days on market.

If you are in the market for a home in Bremeton I wouldn't obsess with trying to time the market and figure out when will be the best time to buy or if the market is at bottom. Trying to anticipate the local Bremerton housing market is impossible and usually we only know when bottom hits is when prices will be on their way up.

The best time to buy is when you find a house that fits your needs and you can afford it. We all have to remember that a home purchase should be based on more than the "equity factor". If you wait for the "perfect time", you will probably miss out.