Whidbey Island Naval Air Station Gets Good News

This is really exciting news for Oak Harbor, Whidbey Island and all surrounding areas. We appreciate our military and we rejoice that it looks like NAS Whidbey Island is secure for a long time and that the new P-8 Poseidons will be stationed here. This is also great news for the local economy and for the Oak Harbor and Whidbey Island real estate market.

Whidbey Island Real Estate and Oak Harbor Homes for Sale

Yes, you can sell your Whidbey Island home during the holidays

The Holiday season isn't the best time to sell your Whidbey Island home, but if you have no choice, there are reasons to be merry. Anyone house-hunting on Whidbey Island on Thanksgiving or Christmas weekend must have a good reason: You are less likely to waste time on casual buyers and you won't have much competition.

Try these expert tips:

     Decorate tastefully.
Decking the halls is fun, but don't overdo it. Buyers want to see the home, not your mega-light display or 8 foot Christmas tree. Opt for neutral decor.

     Add curb appeal.
Replace summer plants with evergreen perennials such as hellebores or witch hazel. Bare trees expose your home, so touch up paint and clean gutters. Clear walkways of snow and ice.

     Price for a fire sale.
You don't have time to mess around with price reductions. Price you home 10% to 15% below comparable homes on the market.

     Hire a good agent.
You'll need a Whidbey Island professional who can show your home at a moment's notice and target buyers on a deadline.

Please contact us for other suggestions and pointers to help you achieve your goal of getting your home sold.

Inflation: How will it affect the Whidbey Island Housing Market

"INFLATION IS WHEN YOU PAY $15 FOR THE $10 HAIRCUT YOU USED TO GET FOR $5 WHEN YOU HAD HAIR." - Sam Ewing. And regardless of how much hair you have these days... one thing we can watch to help a get sense of where rates are going is inflation.

Right now, the headline numbers in the US show little inflation overall... but we are already seeing significant inflation in particular items like commodities, food, and oil - which are being driven by a weak US Dollar, and increasing demand from emerging countries like China and India. In addition, the global market reacted late last week to higher-than-expected inflation in China. This is important to us because Bonds and home loan rates hate inflation, no matter where the whiff of it comes from.

Here’s why. Think of inflation as a hot air balloon and rates as the basket under that balloon. As the balloon (or inflation) rises, the basket (or rates) must rise as well.

So, if inflation moves higher in China, their government has to raise rates to fight inflation. And if rates move higher in China, global investors seeking the highest yield will move away from the relatively meager returns seen in US Bonds - and move their Bond buying money into juicier yields found abroad.

There are so many opinions by so many smart people on both sides of the inflation argument, but right now it is all about what the Bond market thinks. And the recent market action shows just how quickly sentiment in the market can change. Remember, it was just a few weeks ago that fears and whispers of deflation helped the Bond market - and home loan rates - improve.

But now with the Fed intent on avoiding deflation and in fact creating inflation through another round of Quantitative Easing (or QE2), the entire Bond market - including Mortgage Bonds - have began to react negatively. Remember, Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds, in a bid to stimulate the economy by:

• Creating inflation


• Lowering the unemployment rate


• Raising Stock prices

While those goals may be good for the overall economy, we need to remember that all three are very unfriendly to Mortgage Bonds and home loan rates.

The good news is, despite ending the week worse than where they started, home loan rates are still near historic lows for the time being. If you or someone you know is looking to take advantage of low rates, now is the time. Please call (360-675-5811) or email me today to get started.

Info courtesy of: AlaskaUSA Mortgage

Whidbey Island Real Estate Condition - Where it Was, Where it Is, and Where it is Headed.

The residential housing marketplace here on Whidbey continues to present a challenging environment. Home sales are still occurring although their number is down considerably from recent peak years. Based upon data provided by the Northwest Multiple Listing Service, 2005 was the peak year for home sales when 1,635 homes sold.

For the prior 12 months ending May 31, 2010 there were 750 home sales reported on the Island. On the basis of home sales activity it would appear that the local housing market bottomed out this past winter. On a 12 month moving average basis, the number of home sales has been slowly rising each month since that time.

In contrast, home prices appear to be still in a state of fluctuation. Some months the reported average sale price (on a 12 month moving average basis) is up a tad; other months it is down slightly. This is probably an indication that prices are stabilizing. It appears that the better properties are selling more quickly and for the most money. Such properties are those that have the best locations and/or are improved with homes that are in good, well-maintained condition, with contemporary floorplans and, of course, fairly priced. On the other hand, the properties having poor locations and/or homes with significant functional obsolescence or that are in poor condition are suffering the most.

It appears that as we go into the summer selling season that the inventory of available homes for sale is rising. The number of foreclosures and bank-owned homes that are competing for buyers will need to dissipate before there can be return to normalcy. Another concern is what impact will the expiration of the $8,000.00 federal tax credit program have on the local housing market.

This continues to be buyers market and will likely remain so for the foreseeable future.

Written by Gregor M. Strohm, ASA