Market Report – May

May 2014 Market Report

Along with our early summer weather has come early increased housing inventory! More houses are on the market, which has relieved buyers of the pressure they have been feeling this past spring and winter. Kitsap County as a whole has increased inventory just slightly breaking the 1300 properties on the market benchmark for the first time in a long time. This is great news, and a relief to buyers.

Inventory is still historically low. This is an interesting market – sales prices are slightly rising in some areas of Kitsap County – yet, the number of sales are lower. Think about this. What this tells me is that well-priced homes that are in great condition, staged, photographed well and ready for market are selling for top dollar. Homes that are overpriced, need updating for the price they are asking (again – overpriced), or have some other flaw for the price (you can sell any home for the right price in all likelihood) – these homes are sitting on the market. Homes are either selling (green light!) or not selling (red light!). To sell in this market, you need to price your home correctly for sale and ensure your home is in great condition (if it isn’t, price it accordingly – you can’t sell a Yugo for the price of a Porche). Further, take great photographs (AKA Professional Photographer) and stage. 1-2-3 hit the ball out of the ballpark.

Here are the Active Listings market numbers for Kitsap County for May 2014

As you can see in the graph, May’s active listings are up quite a bit from April. April had 1,187 active listings and May had 1,257 active listings. As of right now, there are 1,356 active listings in June! Inventory is rising and relieving buyers.

Kitsap County Active Listings by Month
Kitsap County Active Listings by Month

 

Manette Neighborhood Active Listings – May 2014

As you all know, I really enjoy selling homes in Manette. I live, volunteer and work in the Manette neighborhood and care about where we live.

Manette has some interesting activity going on in real estate. Statistically, active listings are relatively stable. April had 24 active listings, May has 26. However, Manette has six sold homes and three pending sales since last market report. Meaning, we are selling homes as fast as we are listing them. This is a result of buyers who have been waiting to buy in Manette during the low inventory of the spring and winter months. Buyers are buying now, and fast! The average days on market for Manette is 76 days – many areas are selling faster than Manette. The average for Kitsap County is 74 days. An interesting statistic, 2 bedroom homes are selling faster in Kitsap County (49 days) than 3 bedroom (74 days) and 4 bedroom (95 days) homes. Great information!

Manette Active Listings by Month

 

Median Sales Price May 2014

The median sales price in Manette is up in May to $176,000. There were six sold properties in May, which helps provide a more accurate median price (remember last month we saw a drastic dip in median sales price due to low sales activity – few houses sold, and of low value will skew the median sales price). We need to keep watching the median sales price over time. I believe it is too early to tell whether Manette prices are going up or down. One thing I’m seeing is that active listing prices are going up – and days on market are increasing. Remember, increasing your listing price will not get you a higher price if the market will not pay for that price. If a seller asks too high of a listing price, this will hurt them by keeping the property on the market too long, the seller ends up chasing the true market price (down to reality), and eventually ends up selling for less. This hurts the seller’s true goal of getting the most for their money, wastes value time by keeping their property on the market when it could of sold much earlier. Unfortunately, the trend is that sellers who chase the market price down end up selling for less than their property is worth because buyers think something is wrong with the property when a property has been on the market for a long time. Please do not put yourself in this position. Price your property to sell at market price (with a little wiggle room for negotiations – this amount varies in price brackets), and sell well.

Manette Median Sales Price for May 2014

Manette Pendings and Solds

Pendings:                CDOM=Current Days On Market

1333 Hayward Ave. 2B/1B $79,000 CDOM=10 *will probably sell for more. Had multiple offers.

1109 Scott Ave. 2B/1B $159,000 CDOM=4

1318 Nipsic Ave.  3B/1.75BTH $267,000 CDOM=24

Solds:

1611 Hayward Ave. 4B/2.5BTH $156,000 CDOM=160

1113 Scott Ave. 4B/1.5BTH $190,550 CDOM=153

1002 Ironsides Ave. 3B/1.75BTH 200,000 CDOM=2

2607 Holman Street 3B/1.75BTH $206,900 CDOM=71

1017 Samara Ave. 4B/2.5BTH $209,950 CDOM=197 *I do not consider this to be Manette. The MLS does and it is calculated into the MLS “Manette” statistics. FYI.

1739 Trenton Ave. 2B/1.75BTH $229,000 CDOM=2 *This was newly updated, in great shape.

 

Investor’s Corner: Summer is always a difficult time for investor buyers in Kitsap County. Prices tend to rise enough that buy/hold investors have an near impossible time finding cash flowing properties, wholesalers and rehabbers also work much harder, and deals go quickly. So far, we are not seeing the typical rise in prices that we experience come June in investor-class properties. This is great for investors. However, there is less inventory. In the past four weeks, properties are selling faster and there are less income producing properties on the market. However, investors are still able to find plenty of opportunities for their portfolio for those with a keen eye and quick action. If you are interested in income producing residential real estate, or simply want to have fun looking, keep an eye on my “Pick of the Week!” featuring a Kitsap County SFR/MFR income producing deal I’ve found just for you.

Manette Market Report – April

Manette Market Report – April

In April 2014, there were 24 Active listings in Manette.

MAnettechart - April2014

The Median Sales Price in Manette fell from $218,000 in March to $140,913 in April, 2014. This is statistically insignificant due to the low inventory in Manette. When you look at the graph below, the price curve indicates that prices are relatively stable and may be increasing. We are seeing some Active listings in the upper price range in Manette. It will be interesting to see what the final sales price is on these listings and how this affects home prices in our neighborhood.

Manette- mediansalesprice - April2014

Pending and Sold Properties – April

Address Pending or Sold List Price, Sale Price
1016 Hayward Ave. Pending Sale (PS) 105,000
1127 Scott Ave Pending 119,000
2411 E. 13th St Pending 135,000
1611 Hayward Ave. Pending 155,000
2603 Holman St. Sold 214,000

But Zillow Says…

bremerton wa real estate
What’s MY Home Worth?!?

“But Zillow says my home is worth (fill in the blank)!”

Zillow estimates have left homeowners either confident of their home’s worth or confused since Zillow first started. So, what is a homeowner to believe? Let’s first look at how Zillow comes up with a home’s value.

Zillow uses a computer algorithm to price real estate called an automated valuation model (AVM). There are certain inherent problems with AVMs. The most notable problem is that AVMs fail to consider the condition and situation of a property. Does the property have a view? How updated is the home? Is the area in a good location? AVMs are limited to working with mathematical averages. Basically, a bot does the work - not a  human who thinks, sees and evaluates a property’s qualities. AVMs simply work with numbers collected from public data.

Another issue with AVM estimates is that the data collated may be from different years. This may make the accuracy of the value estimate unreliable. According to Ron Cowan Appraisal Service in Yorba Linda, CA, “Many AVMs and free online services rely on public assessment records. In many states, for example, assessments may only be required every three years — the value may be nearly three years old in that case.” (http://www.roncowanappraisal.com/AboutAVM’s; May 9, 2014) AVMs often compare properties that were sold years prior and sold for much less or much more depending on whether the property was sold as a foreclosure property or during an upmarket. Such comparisons can throw the value of a home off significantly. Some valuations can be off by as much as $100,000. That is a high risk to take when selling or buying a home and needing a reliable price valuation.

What to Do. The most reliable source of your property’s value comes from a thorough market analysis conducted by a real estate agent or an appraisal. Real estate professionals sift through recent property sales, analyze property condition, location, obsolescence, current market conditions, and the unique characteristics of a home. These professionals then collate this information, weigh which characteristics most match your home’s likeness (therefore not giving equal weight to each property which is what an AVM does), and produce an accurate property value that will stand the test of the current market.

Other Automated Valuation Companies

Below are several companies that use the automated valuation model (AVM) to price homes. Here is a quick look at what’s available:

MoveUp.com Shows comparable properties and an estimate.

Eppraisal.com Provides property valuation, nearby sold properties, and public record information about the searched property.

ePropertywatch.com by Corelogic. Shows area comparable properties used for estimate.

Realestate.com/homevalues/ Provides a range of estimated value, comparables and market information.

Homesnap.com Provides three estimate:  a low estimate, a”value estimate”, and a high range for property value.

Try all AVM company estimators When you enter your address with each of these companies and you most likely receive different estimates. Which one of these prices would you believe if you were the buyer for this home? (Probably the lowest value!) Which one of these prices would you believe if you were the seller? (Probably the highest value!) Which is correct?

AVM estimates will continue to be popular due to their easy access and quick response. It is important to note that while AVM estimates are free, so are qualified CMAs (Comparative Market Analysis) from your local real estate professional. A CMA is the property valuation provided by licensed real estate agents/brokers. CMAs are provided for free by most real estate agents. While a CMA may take several days (or it should, because the agent needs to view your house and take the time to research qualified comparable properties to provide an estimate), a CMA provided by a licensed real estate agent is significantly more reliable as a market valuation for a property. Another option is to purchase an appraisal.