What’s the recipe for a perfect place to live? For those who call Bainbridge Island home, it would be this: a close-knit community surrounded by water and the scenic beauty of two mountain ranges, just a short ferry ride to a fantastic city. Some of the elements that make Bainbridge special are easily defined: a top school system, numerous parks, great health care, a variety of shopping and restaurants and an active arts community. Other things are less tangible: community events like summer concerts in the park and the 4th of July parade, being on a first name basis with your postal carrier, and spending time catching up with friends in the aisles in the hub of the community, the Town & Country market.
Whether you are thinking of making Bainbridge your home or you are already living the dream, Bainbridgeagent.com (along with me, the Bainbridge Agent!) is your resource for real estate information.
January 27th, 2010
Geek Talk
I love statistics. Call me a geek, but I really enjoy applying math to a topic I am interested in to try to gain some understanding of it. It is also comforting in a turbulent market to try to bring order through synthesis of data. Okay, the geek has taken over and she has some things to say.
Lower Inventory
Last year at the end of January, there were 190 active residential properties for sale on Bainbridge. In 2008 that number was 206 and in 2007 (before the “stuff” hit the fan) there were 144 and just 80 in 2006. Compared to 2008 and 2009, available inventory is down 22% and 16%, respectively. Why is that news? We have had an oversupply of inventory for some time now. As inventory declines, the market will come back into balance, between the supply provided by sellers and demand desired by buyers.
Months of Inventory
A measure that can be helpful in understanding a local real estate market is the number of months of available inventory. By dividing available inventory (active listings) by the previous month’s number of sales, we arrive at the number of months of available inventory. At the moment, we have seven months of available inventory.
Days on Market
When I compare the number of days on the market for active inventory versus sold listings (in all of 2009) it is striking. The median number of days actively listed single family properties have been on the market is 112, while the median number of days of all single family properties last year was 74, a difference of 38 days. Of the properties that are currently in contract (contingent sale, contingent on inspection or pending sale) the median number of days on the market are 110. What I gather from these statistics is that while inventory is down, it is taking longer to sell properties.
The statistics coincide with my personal observations. Buyers are taking hard looks at their options, kicking the tires hard. This is not necessarily a bad thing for sellers, because once someone makes an offer, rest assured they have thought about it and are not rushing in with a decision they will regret later and pull out of the deal.
So, if you have a house on the market or are thinking about selling, be prepared to wait.
Financially Distressed Properties
No longer a small fraction of our marketplace, financially distressed properties represented a significant proportion of transactions in 2009 and that trend appears to be carrying through to 2010.
While it is difficult to get exact numbers on this because of a change in the way the multiple listing service reported financially distressed properties that did not occur until mid-2009, I do have some estimated results. At my count, there were 37 sales that of distressed single family homes (15 short sales and 22 bank-owned), representing 17% of all single family home sale last year.
As of January 26, 2010 14% of the active inventory is in financial distress (13 short sales and 9 bank owned). Forty-one percent of properties in contract are distress sales, or 13 out of 32.
Of note is that short sales are taking about twice as long to get into contract than bank-owned properties. Could this be contributing to the increase in the number of days on the market for active listings? Most definitely. This is another conversation in itself and perhaps I will post on the topic later.
Forecast for 2010
Ha! I don’t want to be trapped by my own words so this is the beginning of the mystical section of my blog post. First, I’ll use an analogy from my experience with my two babies (now ages 2 and 6). In talking with new parents, I tell them that the only thing that will be predictable for a while with their baby is change. I warn them not to rely on what is happening today to predict tomorrow, and be open for anything. For real estate buyers, sellers, and holders, my advice is to think carefully about your decisions and make sure you get good advice from trusted professionals. Look ahead in your life and think about what a purchase, sale, or staying put will mean for you. Ask not only your real estate agent what she thinks, but an accountant and financial advisor. And, as I always like to point out, real estate decisions are usually made because of some underlying personal reason like a new baby, job change, or other life experience that drives you to act (or not!).
The second approach I will take to making predictions about the 2010 market is to turn to a tried-and-true source the Magic 8 Ball. Manufactured by Mattel and invented in 1946 by the son of a clairvoyant, Albert Carter, I make all my important decision with the advice of this toy, um, I mean, precise prediction tool. My question to the Magic 8 Ball today, is, “Will 2010 be a good year for the Bainbridge Island real estate market?” Wow!!! I got a “Yes, Definitely.” The Magic 8 Ball might be feeling a little more optimistic than me, but who am I to question its advice?
January 5th, 2010
Happy New Year!
Tomorrow will be my day to review the statistics of the 2009 Bainbridge real estate market. Today, I thought it would be fun to look back at the past year from a different perspective. Some things just cannot be measured, and in so many ways Bainbridge Island is off the charts . The highlights of the year for me were spending time with my family in a community I love.
Every year the Chilly Hilly is fun for participants and spectators alike. We waved from the end of our lane as bikes whizzed by, the cyclists waving and saying hello, and participating friends stopping to chat.
Snow in April! This photo reminds me of the a snow storm last year that knocked out our power. I had coffee beans, a propane stove top and a French press, but no way to grind the beans and make coffee! A good (VERY good) friend who lives nearby stopped by with a thermos of coffee for me, taking his chances driving on the very slippery road. THAT is friendship - he knows it would not have been a pretty day for my family if I had to go without coffee
Liz Gadbois, owner of Bottom’s Up Farm, opened up a field on her property to anyone who wanted a plot to garden. Liz’s generous spirit created a great opportunity for people to meet, grow food, and have fun. My family STILL has canned tomatoes from the “tomato jungle” we grew. That, along with zucchini, carrots, beets, snap peas, and lots more contributed to a fun and yummy summer. Liz is an amazing person and she helped make our summer so special!
We have been attending the All-Comers Track Meets organized by Jim Whiting for 5 years. This was the first year for my youngest daughter to participate, and she had a blast. Who wouldn’t?
A big event you may have missed was the birth of a litter of twelve (12!) chocolate labradoodles this summer. We were one of the lucky families to get one, thanks to a chance meeting with my friend Michelle at Bainbridge Bakers, where a flyer about the puppies was posted and Michelle dragged me over to the bulletin board to see it. Thanks Michelle! Tallulah is now 7 months old and thriving as a member of our nutty family. Watch for the 12 siblings, or as many as we can get together to march next summer in the 4th of July parade!
The Bainbridge Island Downtown Association puts on the annual Zucchini Races. The rules are fantastic, like ecouraging bribing of the judge and disqualification for cucumbers. People go all-out, and if you have not attended in the past, it is worth a trip.
Trick-or-treating on Winslow Way is a great time to catch up with friends we have missed seeing each week at the track meet and concerts at waterfront park. Below is a photo of my little mouse with two members of Bainbridge’s Finest.
It was great to have a second year of holiday wreath-making at Bainbridge Gardens with my Mom. We were a little cold after an hour of working, and she treated me to a latte at New Rose Cafe.
Inside the building where the wreath-making happens, everyone is having fun.
The last week of the year we were invited by friends for an evening beach walk at low tide from Hawley Cove park to Waterfront Park, passing under the ferry dock. The adults, kids, and dogs all had a great time despite the cold. We watched the brightly lit ferries come and go, and enjoyed being outside and getting a different perspective on the beauty of our surroundings.
Happy New Year!!!!
November 24th, 2009
Autumn Market Update
Tax Credits
There is a lot to report since my last post. The extension of the First Time Home Buyer Tax Credit did, in fact, happen. In addition, there is a tax credit that applies to an additional group of home buyers who are being referred to as “move-up or repeat home buyers.” There are some eligibility requirements for both of these categories, and a good web site with answers to FAQs is here. One striking requirement for the move-up buyers is that it can only apply to homes under $800,000. Sorry, folks in the higher end of the market hoping to utilize this credit. However, since 75% of single family homes on Bainbridge have sold for under $800,000 this year, it is nothing to sneeze at.
Market Stats
I have been watching the market throughout the year to see how it compared with the dismal numbers of 2008. Through September of this year, it was neck-and-neck for number of sales. October is where things start to diverge (not surprising given the collapse of the stock market in October 2008). As I write this there have been 186 sales of single family homes this year compared to 187 for the entirety of 2008. With 35 homes pending inspection or pending sale, this is sure to be a better year with respect to number of sales.
Interest Rates
October 28th, 2009
UPDATE: Homebuyers’ Tax Credit
Good news is on the horizon for first time homebuyers, and others as well. It looks like the First Time Homebuyer Tax Credit of up to $8000 will be extended by 5 months, through the end of April. An additonal twist is that a $6500 tax credit may also be in the works for current homeowners who have been in their homes for at least 5 years, and will buy a new home by the end of April 2010. For a few details, click here for a story on CNN’s Politics web site.
October 17th, 2009
New Listing on Wimsey Lane…Open Sunday 10/18 1-4
How often do you see a home on Wimsey Lane listed for sale? Not often. People who live on Wimsey Lane love living there. A dead-end street located off Eagle Harbor Drive with just 16 houses. This is a place where kids play in the street, neighbors know each other, and there are neighborhood potlucks. At a time when people are making their real estate buying decisions with the long-term in mind, this is a place to move and stay.
The house itself will make you think “home” from the minute you come around the curve in the driveway. A red farmhouse-style with a big front porch welcomes you as you wander past perennial gardens. Inside is a center-hall with dining and living rooms on either side. The family room off the kitchen is huge - plenty of room for a piano and a large sitting area around the fireplace, with two sets of French doors to the back yard. The kitchen is also quite spacious, and includes a walk-in pantry, breakfast area (definitely more than a “nook”) and a separate laundry room with enough space to move around in and even set up a full-sized ironing board.
Upstairs the layout is great. In addition to the master suite there are two nice-sized bedrooms that share a Jack-and-Jill bathroom. There is a fourth upstairs room that makes a nice study, guest room, play space, or… ?
In addition to the hardwoods throughout the main floor, the stairs are also hardwood, as is the upstairs hallway. Other details that make this house stand out from its peers are the crown moldings and built-in cabinetry in the pass-through between the living and family rooms.
If you are not already hooked, read on. Adjacent to the rear of the garage, but with its own entry, is a heated shop with a window. Yes, a SHOP (for those of you with lots of tools and ideas, you know how precious this space is!). Finally, to top it all off, there is a treehouse tucked away in the southwest corner of the property. This property has it all.
Please stop by for a visit at our open house Sunday, October 18th from 1-4pm. For additional details and photos, click here.
September 15th, 2009
Back to School
We have made it through the first week of school. Getting back into the routine has been particularly challenging this year because the elementary school start time is earlier for us this year, and the school bus arrives at the end of our lane at about 7:10am. I know that I was more nervous on the first day than my first grader. However, any fears any of us had were put at ease when the bus stopped at our lane, the driver’s window opened, and the driver called, “Hi Morgan!” What a treat to have Jonah, who drove the route when my daughter was at a different school last year, remember her and call out her name to welcome her back to school.
My husband and I attended a classroom meeting with our first grader’s teacher one evening last week. During the meeting, the principal came in to introduce himself and make a few comments. Perhaps most notable was that he thanked the parents, as members of the community that contributed to the “Save Our Teachers” campaign run by the Bainbridge Schools Foundation (BSF). Last year when the state cut its budget for education, Bainbridge was forced to cut a number of teachers. With the fundraising effort of the BSF and the generosity of the community, ALL of the teachers were recalled. Amazing.
It is a good to live in a place that has it’s priorities straight. No, Bainbridge is not perfection - no place is - but it is a darn good place to live. With every real estate transaction I am a part of, I try to keep my priorities straight, too, and allocate part of the sales commission to education funding and part to the Housing Trust Fund. Thanks to my clients for their support and you can feel good knowing that the first thing I do with my commission is to give some of it back to this community.
September 4th, 2009
New Listing - Open Sunday, 9/6, 1-4pm
New Listing
Just listed on the south end of the island, this home is turn-key and beautiful. It screams “home.” From window treatments to pretty painted woodwork to details such as the hexagonal white tiles of the bathroom floors, this newer home 
has classic appeal.
The main floor has an open design, flowing freely 
for comfortable living and entertaining. A deb is tucked away from the living and dining areas, and has glass-paned French doors. The kitchen features stainless appliances and attractive and abundant wood cabinetry. Painted wainscoating in the dining room is one of the many details that give this home its classic style. One of my favorite features of the house is the 
storage under the stairs that is currently utilized as a children’s art and game cabinet.
Upstairs a lovely master suite includes a western Juliette balcony and vaulted ceilings. A second-floor laundry is a nice bonus. Two additional second floor bedrooms share a full bathroom.
This property will be open to the public for viewing Sunday, September 6, from 1-4pm.
For additonal information and photos, click here, or contact:
Sarah Sydor
Windermere Real Estate/BI, Inc.
ssydor@windermere.com
(206) 683-4526
August 27th, 2009
New Listing - Open Sunday, 8/30 1-4pm
Doesn’t this photo make you want to see more? This unique home has much to offer… Close to town (Grand Avenue), nearly a half acre with sunny garden space galore, and a stylish home with an open floor plan. A nice bonus is the outbuilding that is half finished space (art studio, office, ???) and half shop/garden shed/storage.
For details and a photo gallery, click here.
August 16th, 2009
Market Update
Overview
It’s been a while since I have posted a market update. The tone in the business section of The Seattle Times of late, relative to real estate, has been pretty positive. In general, they have been reporting sales are up while prices stay flat or continue to decline ever so slightly. The most important three rules for real estate buyers also applies to dissecting the market: location, location, location. Below is a look at our micro-market, as compared to 2008. Keep in mind that 2008 was not a stellar year for the real estate sector, but my view is that if the market holds steady in 2009 that will be good news given the climate of economic instability that has hovered for much of this year.
Single Family Homes
Compared to last year, the number of sales is down by 8%, year-to-date. Last year as of August 16th, there were 119 sales compared to 110 in 2009. The median price of a singe family home sold last year was $610,000 compared to $620,750 this year, for an increase by 2%. (Note: I would not interpret that as “prices are up.” Looking house by house, prices are definitely down.) There is almost no change in how long it takes to sell a house - 75 days compared to 74 days in 2008. This statistic is the number of days it takes from when a house is listed to when it has a pending contract.
Condominiums
Similar to the single family home market, the number of condominium sales are down by a marginal amount, with 31 sales this year and 34 in the same period last year. The median sale price of condominiums is down from $391,750 to $349,000, and the median days on market is 105, up from 82 last year. The striking statistic here is how long it is taking to sell a condominium; we are finally seeing sales of a number of condominiums in new projects that have been on the market for quite some time. The market is still absorbing that segment of inventory.
Vacant Land
With just 5 sales this year compared to 9 in the same period last year, land sales are down 44%. Bottom line here? The market still has plenty of inventory and there just is not much of a market for new spec homes. Lending is also a factor; with so many builders defaulting on construction loans in the past year are so, banks are reluctant to lend to builders for new projects until the market changes. The median days on market has changed from 48 in 2008 to 135 in 2009, up 181%.
Silver Lining
I’m a cup-is-half-full sorta gal. The positive new is that we are holding ground in number of sales for single family homes and condominiums. If you have money to spend now would be a good time to make an investment in any of the market segments. There are single family homes and condominiums that could cash flow with 25-30% down with today’s interest rates. It has been some time since we have seen that on this island. Rental rates have felt downward pressure just as house and condominium sale prices, but the equation still works out on some properties.
For someone who has thought about building their dream house some day, this is also a good time to buy and hold. There are 83 vacant land listings on the market. Half of these are under $300,000. There is one piece of water view land, close to 2 acres, that sold for $550,000 three years ago and is now on the market for $299,000.
If you have any questions about the above statistics, please call or email me.
June 21st, 2009
Who Cares? We do!!
It could just be my super-duper-Bainbridge bias, but it seems to me that people on our little island not only care deeply about this community, but in additona to “talking the talk” they also “walk the walk.” A few examples that strike me how entrenched giving is here follow.
Bainbridge Island Rotary Auction and Rummage Sale
Each year, this event raises hundreds of thousand of dollars ($353,000 in 2008) that help support the mission of the nonprofit Rotary organization. For instance, this year 11 Bainbridge high school students were awarded scholarships for ongoing education. The scholarships are awarded to students who exhibit “Service Above Self,” an important theme for Rotary.
Save Our Teachers Campaign
School districts across the state are facing deep budget cuts, and Bainbridge is no exception. Earlier this spring, 17 teaching positions were eliminated due to lack of funding. The Bainbridge Schools Foundation went right to work to get the word out about the cuts, what impact they could have on education, and what the community can do to help. From rummage sales to car washes to individual donations, money has been pouring into the foundation to help recall the teachers who lost jobs.
Montessori Country School Rummage Sale
This amazing pre-school and kindergarten is where my oldest daughter has spent the past two years learning and thriving. Acknowledging that the current economy has been hard on many islanders, the school (with the driving force of one parent in particular) organized a rummage sale that yesterday raised $5600 for scholarships.
There are many other examples of giving that happens every day on BI. I feel fortunate to live in a place where people don’t look the other way when there is a need - they face it head on and with energy, enthusiasm and caring.