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Why Fall Feels Like a New Year
Is September the new January? Back to school season is the ideal time to shift back into routine, but it is also an underrated season for home buying. Let’s dive into the reasons this seasonal transition can feel like a whole new year whether or not you have school-aged kids. For members of the Jewish community, this time of year does mark a new year, with Rosh Hashanah falling annually in September or October.
Housing Market
Spring and early summer are known for being the busiest times of year for real estate. Does that make fall an underdog? Quite the opposite, according to Windermere Chief Economist Jeff Tucker. “Don’t forget that late summer is usually one of the best times to buy, because the level of inventory is high, and right now competition from other buyers is not nearly as fierce as it will likely be next spring,” he said in his latest Numbers to Know video. Plus, buying this time of year means not having to move during the holidays. A new home could mean extra space for wintertime hosting and guests.
In and Around the Home
While summer may be the official outdoor season, there is something special about enjoying a hot cup of coffee with a blanket on your deck. September and October continue to be ideal patio weather months, especially with later sunrises and earlier sunsets to enjoy. We are lucky to live in Zone 8b, where late summer is the perfect time to plant a fall vegetable garden. Trying to get your family meals back on track? We aren’t quite ready to go all in on the gourds. For some meal ideas, check out these fall recipes from our blog archive. We also love the wide variety of premade options from Town & Country, as well as fantastic local produce from the Bainbridge Farmers Market.
Now is a great time to do a home reset before the hustle of the holidays. If you seek inspiration from current trends, you won’t want to miss these tips from House Beautiful, including mini libraries.
Returning to Routine
Summer vacations and later sunsets can throw off even the most rigid routine followers. Maybe it has been too hot for your daily walks, or you paused your gym membership for travel. Perhaps you spent all your free time driving your kids to summer camps. Fall can be a welcome reprieve for any of these scenarios. If you are looking to get back into a gym or try a fitness class, it is a great time to avoid the crowds in January.
New to the Island, The Atrium Club is a modern wellness social club offering a variety of classes. Parks & Recreation has a robust catalog of options for all ages. Plus, the Bainbridge Island Recreation Center is a longstanding favorite. Other Island options include Lighthouse for Barre and more and Club Pilates for reformer and other styles. Yoga offerings can be found at Lotus Hot Yoga, Bainbridge Yoga House, and the Dayaalu Center.
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Looking for more home inspiration? Check out these Native Plant Gardening Tips – and before it gets too late in the season, add these home maintenance items to your checklist.
Ask These 6 Questions When Choosing a Buyer’s Agent
Buying a home can be exciting and a bit overwhelming. A buyer’s agent will guide you through the process, find homes that suit your needs, help you craft a competitive offer, communicate with the seller’s agent, negotiate on your behalf, and much more. While there are many solid real estate agents, you want a buyer’s agent whose expertise will serve you. Your communication styles and personalities should also fit well together. Here are some helpful questions to ask a buyer’s agent.
1. How does your background and industry experience align with my needs?
After researching your potential buyer’s agent online, reading their bio, viewing their sold listings and online reviews, see how their background and industry experience align with your needs. For example, if they’re a parent who has raised their kids in the community where you want to live, and they’ve worked with first-time homebuyers like you, chances are they can provide useful resources. They should also be highly knowledgeable about the local real estate market, and the nuances of specific neighborhoods. Or, if you’re an experienced buyer who wants to purchase an investment property but have limited time, you’ll want to work with someone who is used to tight turnarounds, and has a strong negotiation track record.
Also, it’s important to understand the National Association of Realtors designations and certifications. Working with an Accredited Buyer’s Representative (ABR®) is a starting point, but an agent’s specialities can benefit you even more. For instance, an agent who is a Senior Real Estate Specialist (SRES®) will be well versed in downsizing. If you’re relocating because of a job, consider enlisting the aid of a Relocation Specialist (RELO). These professionals manage the moving process so you can continue focusing on your job. If you’re looking for a waterfront home and/or a high-end property, consider a buyer’s agent who is a Waterfront Specialist or a Luxury Advisor with a deep understanding of the luxury home market.
2. What is your communication style?
Some people think that an agent simply helps you tour homes, but they wear multiple hats and assist in many ways. They’re project managing the entire process and involved in everything from offer letters to home inspections, market research to multiple offer situations. So, it’s important to know upfront whether they like to provide updates via email, phone, or text. You should also say what you prefer. The frequency matters too. Some homebuyers look for a home for a few months while others take a year or more to find the right one. That means you’re spending a significant amount of time communicating with this person, so it’s best to start on the same page. How do they handle miscommunications? Do they have a team who will be communicating with you if they’re unavailable? These are all important things to discuss, especially when reviewing your buyer-agency agreement.
3. Can you recommend service providers who can help me get pre-approved or make home repairs?
Asking this question upfront tells you if this buyer’s agent is well connected and eager to provide resources at different stages in the home-buying process. For an inexperienced agent or someone who doesn’t have a strong reputation, they might dodge this question or give a very general answer. A great agent may provide clients with a vendor directory (like we do here at Windermere Bainbridge). Or, they may email a few recommendations to their clients as needed.
4. What’s happening in the local real estate market?
Real estate markets are often shifting. The national market is not always reflective of what is happening locally. That’s why it’s important to ask your potential buyer’s agent about the local market. You should know if homes are selling quickly or not and if there are any trends in your price range. Also, what strategies are working for buyers right now? A local expert will be able to provide the data, context, and insights to help you understand what the numbers mean for you.
5. How will you decide which homes match my wants and needs?
A great buyer’s agent will ask specific questions to help you pinpoint your home-buying criteria. Whether through a conversation or a questionnaire, their questions will cover important information. For example, how much house can you afford? What features should be prioritized? Additionally, your agent should be able to tell you whether your list of needs is affordable in your ideal neighborhood or community. For example, let’s say you’re looking at waterfront homes for sale on Bainbridge Island. If you know you need a home with at least 3 bedrooms and 2 bathrooms but you can’t go above $1.4M, that may really limit your options. Your agent may suggest looking at view homes or waterfront homes in nearby communities like Poulsbo. The more they know what you want and the more they listen to your needs, the smoother the search will be.
6. What’s your approach to offers and negotiations?
It’s helpful to understand how an agent evaluates pricing, market value, and current market trends when writing an offer. You also want to ask about how they factor inspections, contingencies, and timing into negotiations.
Your agent should be able to explain how a home compares to similar properties and what to expect during inspections and negotiations. This person should be adept at handling unexpected issues, communicating effectively, and advocating on clients’ behalf. If they can’t provide specific examples to illustrate their expertise, you may want to look for someone else.
Having an in-depth conversation with your potential buyer’s agent helps ensure you’re aligned from the start. Beginning with confidence will help you achieve your home-buying goals in a competitive, nuanced market.
Does the Brokerage Matter When Selling Your Home?
If you’re thinking of selling your home, you may be wondering if the brokerage matters. The short answer is yes, but let’s dig into the reasons why that’s the case. While there’s more than one reputable brokerage here on Bainbridge Island and in the Kitsap County area, they aren’t all the same. It’s also crucial that you carefully choose your Broker/Realtor. A real estate agent may be at an excellent brokerage, but that doesn’t mean that person is the best fit for you. If you’re doing online searches like “top real estate agent on Bainbridge Island” or “best brokerage in North Kitsap”, begin with the brokerages and consider the aspects below before signing a buyer-agency agreement.
Reputation Goes a Long Way
A well-known brokerage brings credibility to your listing. Buyers and buyers’ agents are more likely to trust a home for sale that is represented by a respected name in the real estate industry. When they see that brokerage’s sign, they know the property was properly prepared for market, accurately priced, and that the seller’s agent is a trustworthy professional. This ensures a smoother process with consistent communication and full transparency. As a seller, this can lead to more inquiries and offers on your property.
Utilize Local Expertise and Beneficial Resources
Working with a local brokerage typically means their Brokers are highly knowledgeable about your market’s trends. You want someone who will expertly prepare and market your home. Your Broker should be able to talk in detail about pricing strategies, marketing plans, and what buyers are looking for right now. Bainbridge Island is a popular destination for tourists, but there are many nuances to our neighborhoods, and our real estate market. Don’t be afraid to ask your potential agent a range of questions when deciding who to work with. Not only should they have the background and skills needed to align with selling your type of home, but their designations, personality, and communication style should also be considered.
An added benefit is finding a Bainbridge Island real estate expert who also has access to top notch local vendors and beneficial programs for sellers. For example, here at Windermere Bainbridge Island, we provide clients with a booklet of recommended local vendors. From excellent inspectors to repair workers and landscapers, we love supporting top tier local businesses and giving our sellers the best service in every area. Additionally, we also offer advantageous programs like Windermere Ready. It offers clients an upfront investment of up to $100,000 to help you make strategic upgrades with industry guidance, helping you sell for more in less time.
A Brokerage’s Marketing Strategies Matter
A brokerage with a good reputation invests in digital marketing strategies that will increase your listing’s online visibility. This includes optimizing your property’s description and marketing materials with relevant keywords, showcasing your home with excellent photography and videography, and leveraging social media platforms to reach a broader audience. Established brokerages have extensive networks. This affects how they’re able to generate interest in your property, working toward a quicker sale at a favorable price.
Market Share, Repeat Business, and Referrals
When comparing brokerages, look at market share. It speaks to a brokerage’s experience and reputation. Repeat business is also an important factor. Many of our Windermere Bainbridge Island Brokers report that about 90% of their business is repeat business or referrals. Only satisfied homebuyers and sellers refer their friends and use that real estate agent again. Building and maintaining strong relationships is at the core of the way we operate, and we’re proud that it shows. Windermere Real Estate is built on integrity and trust. For years we’ve been the #1 brokerage on Bainbridge Island in total sales. Windermere Real Estate is also the top brokerage in the Seattle area. This is not because we’re the biggest; it’s because we’re committed to offering the finest service and the highest value to our clients.
We are also known for investing in our community. Collectively, Windermere offices have raised over $59,000,000 for local nonprofits through the Windermere Foundation. Our Bainbridge office has supported over 20 local organizations in the last year. And, every time you work with a Windermere agent, you help us make a difference. That’s because a portion of every agent’s commission is donated to the Windermere Foundation. Dedicated to helping low-income and homeless families since 1989, we’re proud of our 100% participation.
Who you work with matters. Real estate involves high stakes and mistakes can be costly. So, start with a brokerage that has proven results and a great reputation. From there, you can find a highly-rated local real estate expert. Whoever you decide to work with, we wish you the best in your home-selling journey!
Does Staging Really Help Sell Your Home? Here’s the Data
When it comes to selling your home, first impressions mean a great deal. As you prepare your home for market, you may wonder whether staging your home is really worth the cost. Here are some data-driven insights, best practices, trends, and advantageous approaches to the home-selling process.
Why Home Staging Matters
Staged homes tend to sell faster and often for more money than those that aren’t staged.
Here are some key home staging benefits:
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Increased buyer engagement online and in person.
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Higher perceived value and stronger offers.
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Reduced time on the market since staged listings can motivate buyers to make decisions more quickly.
Home Staging Statistics You Should Know
Recent home staging statistics show clear results:
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Nearly 50% of sellers’ agents report staging reduces the time on market.
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83% of home buyers’ real estate agents said “staging a home made it easier for a buyer to envision the property as their future home.”
- The most commonly staged rooms by home sellers’ real estate agents were the living room (91%), primary bedroom (83%), dining room (69%), and the kitchen (68%).
Staging is a strategic part of marketing your home. It can influence buyer behavior. Important rooms in the home are carefully prepared so that they create a strong first impression with buyers, both online and in person.
Best Home Staging Practices
While staging can seem overwhelming, a few smart moves go a long way.
1. Declutter and Depersonalize
While you may have already prepared to deep-clean your home to get it ready for market, it’s crucial to declutter and depersonalize it as well. You want buyers to be able to easily imagine living there. Packing your mementos away, donating unwanted or rarely used items, and getting organized in advance can streamline the preparation process. Minimal décor will help emphasize each room’s size and potential. It’s also a good idea to pare down furniture. You want every area to feel as spacious as possible. If you’re moving into a smaller home, check out these downsizing tips.
2. Focus on Key Areas
Prioritize the areas that matter most, such as your home’s exterior, living areas, kitchen, and primary bedrooms. These impact home buyers’ impressions and can create an emotional connection. Curb appeal can make quite a difference since it’s the first thing buyers see. So, be sure to repaint or pressure-wash your siding, clean your windows, and gutters. Enhancing your property’s landscaping and adding flower pots, outdoor furniture, and/or a fire pit can make it more inviting.
When it comes to the interior, make sure you get rid of any unwanted smells, remove heavy drapery to let as much light in as possible, and consider updating lighting fixtures and hardware to give each space a fresh feel.
3. Use High Quality Photography
The majority of buyers start their home search online. Staged rooms tend to photograph better and attract more online views, showings, and, ultimately, offers. Having an excellent local agent who works with top-tier photographers can make a huge difference. 3D virtual tours and videography, including aerial footage, can also be highly advantageous for your property, especially if the home is well-prepared and staged.
Real Estate Staging Trends
Staging has evolved alongside interior design and real estate trends. Buyers increasingly want a home that supports work, wellness, and entertainment. Think bright home offices, spa-like bathrooms, spacious living rooms, and welcoming outdoor dining areas. With this in mind, staging often includes carefully selected pieces that feel aspirational without being too specific. You don’t want to alienate buyers or have them focus on the decor more than the home itself. Additionally, high-quality virtual tours are becoming the standard, so the more obvious each room’s best qualities are at first glance, the better.
Staging a Waterfront Home
Waterfront homes have their own staging considerations. These properties often offer stunning views, lots of natural light, and potential for outdoor living. With those features in mind, furniture should be arranged to emphasize windows and water views. Patios, porches, decks, and docks should be presented as extensions of the living space. You’ll also want to make sure that your outdoor furniture suggests relaxation and hints at the lifestyle provided with this home. While you may have many elements that create fun themed decor, it’s best to take a minimalist approach. You want to enhance the openness of the waterfront property by focusing on subtle accents such as soft linens, textured natural fibers, sheer curtains, and light colors.
Financial Assistance to Maximize Your Home’s Appeal
Staging is an upfront investment, but not all sellers can or want to shoulder that cost. That’s where the Windermere Ready program comes in. It offers up to $100,000 in financial assistance to make strategic improvements that boost buyer interest and potentially help you sell for more. Learn more about this advantageous program or talk to your Windermere Bainbridge Island Broker to get started.
Do This Before Looking at Homes for Sale on Bainbridge Island
There are many different types of homes for sale on Bainbridge Island, ranging from stunning waterfront properties and luxury homes to quaint condos and townhomes. But before you dive into online searches and open houses, there are some important steps to take to ensure success. Buying a home is an exciting and in-depth process, and buying a home on Bainbridge Island means being aware of different factors that could mean the difference between you landing your dream home and losing out on the place that would suit you best. Here’s what you need to do before you start your real estate search.
1. Get pre-approved
Before looking at homes for sale on Bainbridge Island, it’s crucial to get pre-approved for a mortgage. You need to fully understand your budget, and your lender will need to conduct a thorough credit history check. Be ready to provide financial documents like pay stubs, bank statements, and tax returns. Not knowing your financial health in advance is like walking into a potential negotiation empty-handed. You want to put your best foot forward with an official pre-approval so that as soon as you find a house you want to make an offer on, you can do so right away.
In some real estate markets, you may have time to peruse listings, casually view open houses, and then make an offer when the time seems right. Here on Bainbridge Island, our local real estate market works differently. Since this is a popular place to live, there are many multiple offer situations, and it’s common to hear about all-cash offers. So, if you need financing, be sure to have your ducks in a row and be ready to make a competitive offer quickly. A local lender is also a great resource. They know the area, can provide good rates, and tend to be more available to ensure a smoother process than a distant national bank.
2. Make a need, want, and nice-to-have list
It’s easy to get enticed by beautiful property photos online. It’s also fun to imagine yourself when walking through gorgeous homes that all seem like “the one” at first. But it’s important to first get clear on what you need and want. This will help shape your vision and make it easier to weed out nice homes that simply don’t have everything you require. No one wants to spend countless hours searching, let alone get to the offer phase (or further) and then suddenly realize it’s actually not truly what you want or need. You can avoid this misstep by making a three-column list. In the first column, list what you need. Next, list what you want. And last, list aspects or features that are nice to have as bonuses when thinking of your ideal home.
For example, you and your partner may know that you want at least a 3-bedroom, 2-bath house but does it matter how old the home is, if it’s more than one story, or if it has an open concept layout? Do you need to have a bedroom on the main floor? Do either of you need or want to have a finished basement, a home office, a workout room, or a fenced backyard? If the home doesn’t have a spacious kitchen, updated bathrooms, or a garage – are those dealbreakers? If the property doesn’t have room for a garden is that a bonus you can do without or is it something you can’t live without? Do you want to be within a certain walking or driving distance from the ferry to Seattle or from a certain school?
If you want to buy a condo on Bainbridge Island, it’s best to start thinking about added fees, whether certain types of condos fit your lifestyle better than others, which amenities are must-haves, and if you have any condo-related dealbreakers.
If you’re looking at land listings to build your dream home, do your research before viewing lots. Look into utilities, nearby amenities, and potential hazards. Check out our article on considerations when buying land to learn more about that process.
3. Research the Bainbridge Island market
As we mentioned, Bainbridge Island’s real estate market is still going strong. Below, you can see highlights from our most recent quarterly market update. Knowing our average home sale price is $1.6M may surprise some homebuyers. While there is still a range here on the island, it is important to manage your expectations around the financial aspects of buying a home here. It can also get pretty competitive. One of the best ways to ensure success in this market is to work with a highly-rated local real estate agent. They will know the intricacies of different parts of the island, can connect you with local lenders, builders, and much more. Additionally, they can provide recent sales data and the latest market research. Also, they will look at homes for sale and can refine your search to streamline the process. By doing so, you’ll be able to make more informed decisions every step of the way.
4. Learn more about Bainbridge Island
If you’re thinking of moving to Bainbridge Island but haven’t spent much time here, we highly suggest you learn more about our area and the island itself before making an offer on a home. While we love living and working here, Bainbridge Island isn’t for everyone. Some people who are new to the Pacific Northwest aren’t fans of the rainy season while others don’t like living on an island (though it is an island you can drive on and off vs. one that’s only accessible by boat or ferry). Our wetter climate means you may have to deal with a moss or mold issue, flood zone concerns, and/or more frequent roof inspections. On the other hand, Bainbridge Island is also home to lush forested trails, incredible beaches, and an award-winning public garden. We also have top-tier schools, a focus on sustainable living, a thriving arts scene, and much more. Additionally, each neighborhood has its own interesting characteristics that you’ll want to consider. If you do your research in advance and talk to your local broker about what you’re looking for, you’ll have a better idea of which neighborhood would suit you best. It’s also a great idea to spend time in specific neighborhoods if possible. Walk around, say hello to any neighbors you pass by, and live like a local as much as you can.
5. Be prepared to make a strong offer
It’s one thing to do your research and look at homes for sale, it’s another thing to be fully prepared when you find the right one. You want to be ready to make a strong offer right away. If you already own a home and are thinking of buying and selling simultaneously, you may want to consider the Windermere Bridge Loan program. With this program, you can buy before you sell, using the equity from your current home to make a non-contingent offer on a new one. This increases your negotiation power. The approval process only takes a few days.
Other ways that you can stand out as a buyer include making a larger earnest money deposit, possibly waving certain contingencies, and show your willingness to work toward a quick closing.
Managing Expectations When Buying a Home
Buying a home is an exciting process, but there are many steps involved. The timeline can vary greatly based on your situation, needs, wants, and goals. We’ve compiled some tips below to help you manage your expectations, which will reduce stress and result in a smoother, more enjoyable process.
Create a Focused Approach
As soon as you start seriously considering the prospect of purchasing a home, make a list that clearly details your needs, wants, and nice-to-haves. Home buyers, especially first-time home buyers, will often talk about a few specific things like a minimum of three bedrooms, a fenced yard, a big kitchen, or their ideal work commute. However, those few details aren’t enough to paint a clear picture. It also won’t filter out that many homes for sale online, and in this process, specificity is your friend.
To create a focused approach, try listing all of the things you’d love if you could wave a magic wand and have this property right now. If you’re doing this with a partner, create separate lists without talking and then come together to share. Also, when collaborating, it can help to do this with sticky notes so that you can put them up on a wall and compare, compile, and categorize needs or deal-breakers, wants, and nice-t0-haves. Get as clear as you can by asking yourself questions like these:
- What is the minimum square footage you need?
- How many bedrooms and bathrooms are necessary?
- Which type of home suits you best?
- If you’re looking at a waterfront home, do you prefer or require a low bank or high bank?
- If you’re buying land to build a home, what is your minimum lot size or acreage?
- Is it really important to you to be within walking distance of a downtown area, specific school, and/or nature?
- What driving distance is a deal-breaker for your work commute?
- What characteristics do you look for in a neighborhood? If you’re looking on Bainbridge Island, which neighborhood will suit your lifestyle best?
- How much are you willing to go over the asking price if a multiple-offer situation arises?
- If you’re downsizing, will this be a home where you can age in place?
- If you’re open to a home that needs some repairing or remodeling, what is your ballpark budget to set aside for that?
- What is your ideal timeline and what is a timeline that you can make work?
(Check out this article if you need to buy and sell simultaneously.)
Learn as Much as You Can Beforehand
It’s easy to look at houses online, but what will really help you is to learn as much as you can before you tour homes. Your Realtor should have extensive knowledge of the local real estate market. Working with a local agent can benefit you in many ways. Not only will they know the latest about your specific market, but they can also tell you about neighborhoods that may suit you best, which schools are known for what, and the amenities that are near homes you’re eyeing. Highly rated local agents also have strong ties to the community, so they can serve as a valuable resource long after closing. They will answer your questions, lay out a general timeline, and guide you through the process. The more you understand the complexities of the market and the home-buying process, the more you’ll know what to expect.
Choose Your Agent Carefully
Choosing your real estate agent is a very important decision. With a highly knowledgeable local agent, you’ll be able to better understand what to look for and what to avoid. You’ll be able to turn to someone who can discuss market trends and provide local insider information. Your agent should be a great listener, a skilled problem-solver, and a strong negotiator. And, if you’re buying here in WA, be sure to watch the video below so you’re aware of our real estate law changes.
Western WA Market Highlights and Insights
We’re seeing some interesting shifts in the real estate market and Windermere’s Chief Economist, Matthew Gardner, just came out with the third quarter Gardner Report for Western WA. So, let’s take a look at some of the key findings for our region along with Gardner’s helpful insights. And, if you have any questions, our highly-rated, local real estate experts are always happy to help.
Regional Economic Overview
Gardner states, “The addition of 110,000 jobs over the past 12 months represents an impressive increase of 4.9%.” Additionally, Western WA’s unemployment rate in August was 3.8%, which is .2% higher than at the end of Q2. County data is not seasonally adjusted, so that’s probably the reason for the modest increase. Gardner goes on to say, “The labor force has not expanded at its normal pace, which is starting to impact job growth. Although the likelihood of a recession starting at some point this winter has risen, I am not overly concerned at this point; however, I anticipate businesses may start to taper hiring if they feel the demand for their goods and services is softening.”
Western Washington Home Sales & Prices
These stats are taken directly from the Gardner Report.
- In the third quarter, 19,455 homes traded hands, representing a drop of 29.2% from the same period a year ago. Sales were 15.4% lower than in the second quarter of this year.
- Listing activity continues to increase, with the average number of homes for sale up 103% from a year ago and 61% higher than in the second quarter of 2022.
- Pending sales (demand) outpaced listings (supply) by a factor of 1:6. This ratio has been dropping for the past three quarters and indicates a market moving back toward balance. The only question is whether it will overshoot and turn into a buyer’s market.
When it comes to Western WA home prices, they rose an average of 3.6% compared to a year ago, and they were down 9.9% from the prior quarter. The current average sale price of a home in Western Washington is $748,569. Kitsap County’s home prices rose 3% – 5.9%. Gardner comments on these numbers saying, “With the number of homes for sale rising and list prices starting to pull back, it’s not surprising to see price growth falter. We are going through a reversion following the overstimulated market of 2020 and 2021. There will be some ugly numbers in terms of sales and prices as we move through this period of adjustment, but the pain will be temporary.”
For a look specifically at Bainbridge Island’s real estate market, watch our brief market update video.
A Note on Mortgage Rates
It’s an unpredictable time for mortgage rates. “The Fed appears to be content to watch the housing market go through a period of pain as they throw all their tools at reducing inflation,” explains Gardner. “As a result, mortgage rates are out of sync with treasury yields, which not only continues to push rates much higher but also creates violent swings in both directions. My current forecast calls for rates to peak in the fourth quarter of this year before starting to slowly pull back. That said, they will remain in the 6% range until the end of 2023.”
Days on Market in Western WA
- Average days on market during Q3: 24 days. This was 8 days more than in Q2 and 7 more days than in the same quarter of 2021.
- Our county and King County were the tightest markets in Western Washington. Homes took an average of 19 days to sell.
Still a Seller’s Market Though It’s Shifting
While we’re definitely seeing a shift in the market, it’s still a seller’s market. “A belief that the housing market is on its way to collapsing will keep some buyers sidelined, while others may be waiting for mortgage rates to settle down,” states Gardner. “Whatever their reasons, I maintain that we will see a brief period where annual price growth will turn negative in several markets, but it is only because the market is normalizing. I certainly don’t see any systemic risk of home values falling like they did in the mid-to-late 2000s.”
For more information, check out the full Western WA Gardner Report and Matthew Gardner’s market news videos.
Bainbridge’s Market: First Quarter, 2022
Bainbridge’s market picked up in the first quarter of 2022. As was the case in 2021, it’s a seller’s market due to low inventory and high demand. Homes are still selling above the asking price and we’re seeing multiple offer situations and many all-cash offers. We’ve compiled key highlights from last quarter to keep you in the know about our local market.
Sold and Pending Homes
In the last five quarters outlined in the graph, 2022’s first quarter is rising like the first quarter of 2021. This follows the usual real estate market trend and we expect to see another hot market this summer. There’s also a significant lack of inventory and there are many eager buyers, driving prices up and heavily influencing our seller’s market.
Bainbridge’s Market Still Favors Sellers
Everyone is feeling the fatigue of low supply, which persisted in the first quarter of 2022. But we expect the market to warm up as we head toward our busy summer season. More real estate activity lies ahead, and if you’re thinking of selling, it’s a great time to do so. If you’re looking to buy, be prepared for the competition and know that having a local real estate agent at your side is extremely beneficial.
Listing Price vs. Sale Price
As a result of low supply, average prices rose 6.5% when compared to this time last year. They are expected to continue to rise as Bainbridge’s buyers meet the pricing demands of sellers. And, the average sale price on Bainbridge Island is almost $1.5 million.
Insights from Our Chief Economist
Matthew Gardner, Windermere’s Chief Economist, shared his Top 10 Predictions for 2022 in one of his recent Monday with Matthew videos. Here’s what Gardner predicts for 2022:
- Prices will continue to rise, though the pace of appreciation will slow. Gardner thinks it will be about 6% in 2022 versus the massive 16% rise of 2021.
- Spring will be busier than expected. This will increase buyer demand, as buyers get more clarity in their new hybrid model combining remote and office work.
- The rise of the suburbs will also result from this work hybrid model. Many buyers are moving within the same area they already lived in.
- New construction jumps since the cost to build has come down.
- Zoning issues will be addressed.
- Climate change will impact where buyers live. People will focus more on how safe a location is in relation to natural disasters.
- Urban markets will bounce back after the demand drop from Covid.
- A resurgence in foreign investors will return since the travel bans were lifted last November. The demand will rise as long as our borders remain open.
- First-time buyers will be an even bigger factor in 2022. This year, 4.8 million millennials will turn 30, the median age of American first-time buyers. Additionally, first-time buyers will be looking for cheaper markets.
- Forbearance will come to an end and that will be okay. It was well thought out, and as Gardner says, “as of recording this video, there are now fewer than 900,000 owners still in the program.” Hopefully, this continues to drop.
For additional information, check out Matthew Gardener’s Market Update by region.
Fourth Quarter Market Review for Bainbridge Island
Bainbridge’s real estate market slowed down for the holidays during our fourth quarter. The market still favors sellers due to low inventory, and homes are still selling above the asking price. We’ve compiled key highlights to keep you in the know about our local market.
News on Sold and Pending Homes
In the last five quarters outlined in the graph, 2021’s real estate market started with the usual growth trend into the summer. Now, we’re seeing the seasonal downswing during colder months. However, home prices are still increasing due to demand and sold homes still outpace pending listings. The result is a strong seller’s market. In the 4th quarter of 2021, we had 86 closed sales, which is a 39.4% decrease, year over year.
Still a Strong Seller’s Market
Bainbridge Island real estate demand was at a record high in the fourth quarter of 2021. With the new era of remote work, many Seattle homebuyers are seeking the quaint island feel that Bainbridge offers. If you want to learn more about Bainbridge Island, check out our free digital guide. If you’re interested in buying or selling, our local experts are here to help.
Listing Price vs. Sale Price
Although buyers continue to meet the competitive Bainbridge pricing, there just aren’t enough homes available right now. As you can see in the graph above, the averages of listing and sale prices are starting to converge as demand stretches the cost of housing even further in favor of sellers. In our 4th quarter, we saw a 19.4% increase in the average sale price on Bainbridge Island, putting it at $1.57 million.
Insights from Our Chief Economist
In his most recent Monday with Matthew, Windermere’s Chief Economist, Matthew Gardner, shares his market forecast for the coming year: “If everything goes according to my plan, you should expect to see the housing market start to move towards some sort of balance next year, but I am afraid that it will still remain out of equilibrium until at least 2023.” Gardner reminds us that the transition back to a balanced market will be a gradual shift.
While Matthew ensures us that he “doesn’t see a housing bubble forming,” he goes on to say “it would be silly to say that there aren’t any issues in the housing market that concern me because there are and the biggest of which is housing affordability.” There is definite cause for concern among the millennial generation as they start “thinking about settling down and, possibly, having children” Gardner explains. “I wonder how hard it will be for many of them to be able to afford to buy their first home.” Millennials are currently the largest slice of the generational real estate market, so it will be interesting to see where affordability and demand intersect.
Overall, Gardner concludes with a high-level market analysis: “demand for ownership housing remains remarkably buoyant and, in fact, it is quite likely that demand may actually increase with the work from home paradigm that will start to gain momentum next year.” With dependable demand, real estate continues to be an excellent investment.
Third Quarter Market Review for Bainbridge Island
Bainbridge Island’s real estate market remains a strong seller’s market. In our third quarter, we continued to see homes sell above the asking price. We also saw a similar increase in average sale price when compared to this time last year. We’ve compiled key highlights to keep you in the know about our local market.
Bainbridge’s Competitive Market
Bainbridge Island continues to get more competitive for buyers in this third quarter. Many home buyers want to live near Seattle while enjoying beautiful Bainbridge, and remote work trends have increased demand. However, the volume of homes on the market decreased year-over-year, making our seller’s market that much stronger. If you’re looking to buy, our Brokers can help guide you through this competitive market. They know this market extremely well, they know the nuances of Bainbridge’s neighborhoods, and they have excellent track records.
Market Data
In the last five quarters outlined in the graph below, the long-standing growth trend in sales volume is finally slowing. Yet home prices are still growing and sold homes still outpace pending listings as a result of the increased economic demand. As the season slows and inventory wanes, prices may level – effectively balancing out the market between buyers and sellers. Or, at least they will start to shift toward a more balanced market.
With our lower supply, we continue to see even higher prices. While many buyers are willing to meet the demands of Bainbridge Island’s pricing, there just aren’t enough homes on the market right now. As you can see below, the averages of listing and sale prices are starting to converge as demand stretches the costs of housing even further in favor of sellers.
Home Purchase Sentiment Index: Insights from Matthew Gardner
In his most recent Monday with Matthew video, our Chief Economist delivered a comprehensive analysis of the most recent Home Purchase Sentiment Index figures put out by Fannie Mae. The data comes from a survey containing approximately 100 questions on housing-related topics. Fannie Mae collected 1,000 consumer responses from across the country. As Matthew Gardner says, “It’s the only national, monthly survey that’s focused primarily on housing.”
The survey shows that many Americans continue to think it is not a good time to buy because of the low supply and rapidly rising prices. However, many feel it is a good time to sell as consumers predict home prices and mortgage rates will go down. As Gardner explains, “most consumers continue to report that it’s a good time to sell a home, but a bad time to buy. They most frequently cite high home prices and a lack of supply as their primary rationale…However, the good time to buy component did tick up for the first time since March.” While this is a recipe to shift towards a buyer’s market, we’ll see how things unfold in the coming months.
Gardner sums it up nicely: “The takeaways for me so far are that consumers tempered both their recent pessimism about home buying conditions and their upward expectations of home price growth.” So again, we are seeing the potential for a shift toward a more balanced market.
