How's The Oak Harbor Real Estate Market (Part 2)

In my last post, I explained my answer to "How is the Market". As part of that answer, we must consider what effect the distressed homes are causing on values.  Because of the economic conditions in our country over the past few years, homeowners are losing their homes through foreclosure because of loss of jobs, changing terms of mortgages, inability to sell, etc. Foreclosed homes then sell at a price that is usually less than comparable homes in the market, driving down the prices of homes. Other homeowners that need to sell are experiencing another difficulty. Their home is worth less now than when they purchased it and they must sell at a loss. If they don't have the funds to make up the difference, then negotiations with the bank may allow them to sell short, or as is commonly called, a Short Sale. Short sales also have the result of causing prices to decline in the local area.  These are factors that have resulted in the way that I answer the question, How Is The Market.

North Whidbey Island 2010 Statistics for evaluating the effect of Distressed Home Sales:

•  Short Sales were 11.5% of the active listings and 5% of the sold listings.  Foreclosures were 9% of the active listings and 17.5% of the sold listings. 
• The average listing price range of the overall market was $263,000.  The median sales price of non-distressed homes was $250,000, Short Sales was $220,000, and Foreclosures was $160,000.
• The price per square foot for non-distressed sales was $150 per sq. ft., Short Sales was $124 per sq. ft., and Foreclosures was $112 per sq. ft.

Based on these statistics, it can be noted that a larger foreclosed home could be purchased for less money that a smaller non-distressed home. Also it can be noted that more Foreclosures were being purchased than Short Sales which will make the Short Sale homes probably result in Foreclosures.

With all of this being said, I do believe that prices have stabilized in our market. Over the next year, we will see some gyration of values but nothing like we have experienced in the last few years. It is still a great time to buy if you are a buyer, and if you are a seller that has owned your home for more than 5 years it is still a good time to sell. If you purchased your home within the last 5 years and don't need to sell, then I would recommend holding on to it if you can. Call us about Property Management if you need to leave the area. If you are still living in your home and just need more space, than maybe a remodel would be best for you. We know of some outstanding contractors that we would be happy to recommend to you. Whatever the situation is, I can assure you that home ownership is still "The American Dream".