Graph of Kitsap County Single Family Home Sales, Prices and Trends June 2012
{Note: In the event you got to this article from an older link, here is a link to the newest data for this category of monthly home sales in Kitsap County}
Wow, the symmetry of this graph is amazing. If you look at the period from January 2011 to June 2011 and compare it to January 2012 to June 2012, the relative symmetry of the number of homes Sold monthly is incredible and nearly identical. In the last couple of months, however; the data appears to be making a break and heading into higher sales numbers compared with previous years. I believe this shows a return to a more normalized housing market with normal seasonal real estate cycles. The huge market gyrations created by the gov’t first-time home buyer tax credits which spurred major buying and then an end the program which then temporarily caused a major decline in demand is no longer reflected in the data or in the market.
The other very interesting fact that is not directly apparent on this graph, is the Median home selling price in Kitsap County for June 2012 was $245,000 which was almost identical to the Median home price from the same period one year ago. The average price, however; for a home Sold in Kitsap during June was $296,489 which was up over 6% above the average for the same period one year ago and is near the highest level in more than 18 months. The average selling price appears to be increasing, as sales of higher end homes are more than offsetting the lower priced sales.
With the improving local economy, low interest rates, and greatly improving demand, the downside risk to housing prices has largely been stemmed while the overall prices of homes have remained relatively controlled with only a minor increase in prices in certain areas and types of homes. I believe prices will strengthen moving forward, so if you have been waiting, now is as good a time as there ever has been in recent memory to jump into the market.
More evidence to support my view is the declining sales of distressed properties (REO bank owned foreclosures, and Short Sales) which comprised only 22% of the homes sold in Kitsap County during June 2012. It will be interesting to see if this trend continues. If it does, we will quickly see a significant increase in average and median home sales prices.
If you are an investor, now is also a great time to be selectively acquiring all types of rental properties, with multi-family properties in some areas being at the lowest level in years, and improving rental rates; the Cap rates and potential ROI, make investment Real Estate appear particularly attractive.
Thank you from visiting our blog.
Brian Wilson, Broker
John L. Scott Real Estate
19723 10th Ave NE; suite 200
Poulsbo, WA 98370
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