Prior to 14 months ago, there was complete real estate frenzy to an otherwise solid investment arena. As speculators poured into rapidly appreciating real estate markets, prices soared and many buyers looking for their first home were priced out of the market. These speculators were not interested in living in a specific community; their investment strategies were based only on the fast-paced ability to "flip" properties within a matter of months. The speculative dollars influenced and inflated marketplaces almost overnight and have caused chaos and frenzy in many overheated real estate markets.  Buying real estate seemed fun.   
Guess what Western Washington Buyers – it still is fun!  

Since the beginning of this year and within our localized Real Estate market - the mindset is changing. More and more local and some national real estate experts agree that market conditions are stabilizing and moving to a "new normal." Historically real estate has been a very safe, secure long-term investment. In the months and years to come, you will see a return to more normal single-digit returns and stable markets.

According to David Lereah, National Association of Realtors chief economist, some national markets (Northwest as one of them) are stabilizing. "Home sellers are becoming realistic about current market conditions and are now offering more competitive pricing, in addition to some incentives or concessions, especially to help first-time home buyers," said Lereah. "The market is becoming increasingly favorable for home buyers than it has in several years, and most sellers (who've been in their homes for a normal period of homeownership- over 4 years and have built equity in their homes) are still seeing healthy returns on their investments. Conditions for buyers have improved because sellers are flexible now and mortgage interest rates are still near historic lows. The market promises to be more balanced in the coming year, supporting future price growth."

While certain national markets are truly suffering – such as Detroit, California, Nevada, Arizona in the area of high number of foreclosures (as many as 1 for every 325 homes!), Washington and Oregon are only seeing 1 in every 1,275 homes foreclosing.  What is the reason?  Well, according to John L. Scott Real Estate the leading Real Estate brokerage in the Northwest, “fewer homebuyers in the Pacific Northwest opted for the subprime mortgages and home values have continued to slowly and steadily appreciate in most local areas. The problems affecting nationwide subprime borrowers: those considered at a higher mortgage risk due to a past credit history, did not seem to affect as heavily this local Northwest market.  The reality is that subprime loans comprise only 9% of total loans nationwide.  The Pacific Northwest stands apart as is its own micro-market, with more homebuyers qualifying for prime loans”. 

In this localized Real Estate market – Kitsap County Washington, for prospective buyers, there may never be a better time to buy a home than right now!  Choices and lower prices are items in a prospective buyer's favor. With increased availability, there is more variety of property on the market. In the most recent years, our marketplace had very limited selection in a given price range, which gave buyers very few options from which to choose. That has changed with current market conditions. Whether you are looking for a cozy in-town bungalow or an expansive rustic lodge on acreage, there's more than likely a property on the market to meet your preferences. Sellers are more flexible and in most cases willing to negotiate to get their house sold.  In some cases, it is possible to purchase a home and obtain instant equity!  Homeownership is still a stable stepping stone to a future of financial security.

The beauty of real estate as an investment is its total uniqueness. Our marketplace is a perfect example of the individuality and diversity of housing options. No two locations are exactly alike. Even identical floor plans can have totally different looks and ambience depending on lot orientation and views. While conditions for buyers are nearly perfect now, that is likely to change in the next subsequent years as home sales pick up, prices gain traction and conditions improve for sellers.  Under current real estate market conditions, the best time to buy really is now.

Real Estate IS very localized and the Pacific Northwest remains as one of the strongest housing markets in the United States!