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Kitsap Real Estate Local Markets in February 2012
Posted on 2012 02 21 by hdnelson
Each month we try to compare some reports about the national real estate market to what we see in our local markets. While nationally the blog Calculated Risk reported that short sales increased significantly in the 4th quarter, we only saw 27% (a very modest rise if any) of last year’s short sales close in Q4. There was also a report from Marc Hanson that the percentage of REO (bank owned) sales In December fell in California as an overall percentage of sales in that market. In our market the number of closed sales that were bank owned rose from 38 in November to 43 in December (up 12%). Our market agrees with the article that $200-300k is the new normal for homebuilders. The article shows that the percentage of sales in the west under $300k was 42% in 2007, but is now 65%. In Kitsap County, the percentage of sales under $300k was 54% (1945 of 3615 total sales) in 2007 and in 2011 was 72% (1829 of 2538 total sales). More at http://tinyurl.com/7pljyjx
Kitsap Real Estate Market Report - February 2012
Posted on 2012 02 19 by hdnelson
The number of closed sales in Kitsap County in January fell about 37% from December and was about 6% lower than a year ago. Pending sales rose about 42% compared to last month and were about 16% higher than a year ago. In December, there were 195 closed sales and 191 pending sales. In January there were 123 closed sales and 275 pending sales. 48% of the closed sales were distressed properties (compared to 32% last month). 46% of the pending sales were distressed properties (compared with 38% last month). Among closed distressed sales, bank owned sales were more than 3 times the number of short sales closed. This month we will report that the median price dropped sharply. This reflects the higher percentage of sales that were distress properties. More at http://www.prowserealestate.com/Blog/Kitsap-Real-Estate-Market-Report-February-2012
Financial Difficulties for Private Mortgage Insurers
Posted on 2012 01 15 by hdnelson
An article in this week’s Barron’s highlights the problems in the private mortgage insurance industry. Typically private mortgage insurance was required for conventional loans when the borrower was making less than a 20% down payment. Borrowers make payment on their mortgage insurance premium as part of their house payment. During the credit crisis, private mortgage insurers such as MGIC, PMI, and Old Republic underwrote many thousands of sub prime and alt A loans. Upon default, the mortgage insurer has to pay losses up to about 25% of the value of the loan. With the huge number of subprime and alt-A mortgage defaults, these companies have seen staggering losses. Two insurers, PMI and Old Republic, have been ordered by state regulators to stop originating new insurance.They will just collect premiums and pay losses. Just another obstacle in reviving the US housing market. See more at http://online.barrons.com/article/SB50001424052748703535904577152831234907986.html