Weekly Kitsap County Marketing Statistics for May 25, 2009

The number of newly written contracts was 43 and back to where we were from January through March.

I'm also identifying the actual number of short sales and foreclosures from now on.

So here are the stats:

• 1,776 active listings in the county
• 89 active listings in Silverdale
• 43 new contracts written (one short sales and nine foreclosures)
• 40 sales in the county (one short sale and 12 foreclosures)
• Kitsap County absorption rate is 40.4 weeks of inventory for sale
• Silverdale absorption rate is 86 weeks of inventory

Total short sales and foreclosures is still around 25% of transactions.

Additional Government Help to Spur Home Sales?

In the past two weeks the Obama Administration has increased the focus helping that segment of the market involving short sales.

Specifically, the administration is acting as an intermediary between sellers and lenders by offering cash incentives to complete the short sale.

Also, there is an attempt to encourage junior lien holders (home equity lenders) to accept a reduced amount for settlement and allowing a short sale to proceed.

Whatever the outcome, I believe it will take at least two years, maybe three, for the inventory of short sales and foreclosures to be sold (to whomever). Remember, until we've had at least two quarters of increasing GDP, there'll be more homeowners losing their jobs and being forced into this situation.

New Information on Short Sales

Attention homeowners...if you are having problems making mortgage payments and your lender can't (or won't) help you, be very careful if you are considering a short sale.

Last week I received information from our staff attorney at Washington REALTORS stating that some (but not all) mortgage lenders are deciding not to release sellers from the unpaid debt amount on a short sale. The end result is the lender has six years to sue the seller for repayment.

The lender can also sell the right to collect the debt to a collection agency or other third party. If a court issues a judgement against the seller for the unpaid amount, that judgement will attach to any real property (i.e., a home or rental property) owned by that seller. This judgement is valid for another 20 years. Ouch!

You must seek legal advice before you choose the short sale alternative!

Kitsap County Market Statistics for May 18, 2009

There were 52 new purchase contracts written in Kitsap County this past week. That means over the past seven weeks we've been averaging 30% more contracts being written.

However, not all of these purchases have closed and if a property comes back on the market then there is some double-counting.

But here are the numbers:

• 52 new purchase contracts (16 either short sales or foreclosures)
• 35 sales county-wide (10 either short sales or foreclosures)
• 1,780 active listings county-wide
• 50.9 weeks of inventory for sale county-wide
• 84 weeks of inventory in Silverdale

Keep watching the absorption rate trend line that I'll be posting on some of my charts.

CRS Real Estate Education

One of the reasons I pursured the Certified Residential Specialist (CRS) professional designation is because it sets me apart from my peers.

Only four percent of REALTORS are CRSs and I'm one of them! Even though we are a small segment (41,000) of the REALTOR population, we are involved in 26% of all residential real estate transactions nationwide.

In addition to the international referral network, CRS education classes are absolutely the best for residential REALTORS!

I helped the Washington State CRS Chapter sponsor this one-day class several weeks ago in Tacoma with Ed Hatch, CRS as the instructor. The class is titled "The New Negotiating Edge...A Five Step Behavioral Strategy."