CityofOceanShores.com Newsletter ~ January 2010

Beach Updates
Happy Birthday Ocean Shores!
News Flash! Ocean Shores turns 50! That's right, the sleepy little beach town celebrates its 50th birthday this year. Happy Birthday (or Birth year, I suppose) Ocean Shores!


Ocean Shores Real Estate Update
It's no secret that 2009 was a horrible year for most if not all business's (except Walmart of course). Not unlike the rest of the country, real estate sales were again slow at the beach and down nearly 13% from the previous year. The First Time Home Buyer tax credit had very little effect out here as most of our buyers are either move-up, retirement or getaway buyers. However, the new $6,500 tax credit for owners of existing homes who buy a new principal residence does seem to be spurring activity. The biggest surprise out here on the beach is that more condominiums actually sold this year than last.
Ocean Shores is not unlike the rest of the country as a large volume of foreclosures, REO's and short sales have driven prices down. However, we are starting to see a significant reduction in the number of these distressed properties on the market today. Prices have bottomed in Ocean Shores much like the rest of the region. The biggest problem we face with sales still remains with the uncertainty of the banks as they continue to strangle buyers with steeper qualifications to get a loan.
That being said, the forecast is good. Nationally, the National Association of Realtor's chief economist sees a strong sales year ahead - up to 20 percent this year. He's also forecasting sustained price increases of anywhere from two to five percent on average. Regionally, the Puget Sound market is significantly up. The volume of pending sales was up more than 35% from a year ago and was the best December the region has seen since 2006. Historically, Ocean Shores tends to follow the Puget Sound's trends by six to nine months.

Here are some year end numbers regarding Ocean Shores real estate:
2009 Home Sales* 180 Homes sold in 2009 for an average sales price of $173,421 (Cheapest was $31,500 - Most expensive was $495,000).
* 206 Homes sold in 2008 for an average sales price of $194,480 (Cheapest was $28,000 - Most expensive was $829,000).
* 241 Homes sold in 2007 for an average sales price of $209,783 (Cheapest was $36,000 - Most expensive was $580,000).

The average home that sold in Ocean Shores in 2009 had 1415 square feet and was on the market for 225 days.* Currently, there's 179 Homes on the market (compared to 228 Homes on the market this time last year) for an average price of $225,194 (compared to $259,367 this time last year). Additionally, there are 18 homes pending in Ocean Shores for an average list price of $158,790.

2009 Condo Sales
* 25 Condos sold in 2009 for an average sales price of $138,468 (Cheapest was $41,000 - Most expensive was $350,000).
* 18 Condos sold in 2008 for an average sales price of $244,000 (Cheapest was $60,000 - Most expensive was $425,000).
* 41 Condos sold in 2007 for an average sales price of $209,783 (Cheapest was $7,500 - Most expensive was $449,000).

The average Condo that sold in Ocean Shores in 2009 had 992 square feet and was on the market for 320 days.* Currently, there's 86 Condos on the market for an average price of $222,777. Additionally, there are 4 Condos pending in Ocean Shores for an average list price of $158,790. There are still some fantastic deals on Condos at the beach right now. Send me an email if you would like a list.

2009 Vacant Lot Sales
* 134 Lots sold in 2009 for an average sales price of $34,968 (Cheapest was $8,500 - Most expensive was $155,000).
* 189 Lots sold in 2008 for an average sales price of $47,799 (Cheapest was $10,000 - Most expensive was $185,000).
* 322 Lots sold in 2007 for an average sales price of $54,655. (Cheapest was $16,000- Most expensive was $450,000).

It took 320 days to sell a Lot in 2009 compared to 284 days in 2008.

2009 Commercial Sales
* 7 Commercial Buildings sold in 2009 for an average sales price of $345,643 compared to 6 sales in 2008 for an average sales price of $281,250.
2009 Multifamily (Apartment) Sales
* 4 Multifamily Buildings sold in 2009 for an average sales price of $167,000 compared to 0 sales in 2008.
Coastal Community Sales Comparisons
On another note, even though the Ocean Shores real estate market was off this past year, consider how bad the market is in a couple of other beach towns. All things said, the real estate market is still kicking in Ocean Shores.
* Ocean Shores sold 180 Homes and 134 Lots in 2008. The average price of the Home was $173,421 & the average price of the Lot was $34,968.
* Seabrook/Pacific Beach/Moclips areas sold 18 Homes and 6 Lots in 2008. The average price of the Home was $344,472 & the average price of the Lot was $92,833.
* Westport sold 23 Homes and 11 Lots in 2008. The average price of the Home was $164,410 & the average price of the Lot was $53,136.
* Long Beach sold 48 Homes and 14 Lots in 2008. The average price of the Home was $183,160 & the average price of the Lot was $107,714.

Summary: Ocean Shores is still the most affordable coastal community in the country and that's a big reason why a lot of baby boomers are retiring in Ocean Shores and numerous people move here to work, play and buy their vacation getaways. Now is the best time to buy in Ocean Shores!Coldwell Banker Ocean Beach Properties is the Top Producing Real Estate Office in Ocean Shores (again...)For the third year in a row, Coldwell Banker Ocean Beach Properties finished out 2009 as the Number One (#1) Real Estate Sales Office in Ocean Shores. This year, not only were we the #1 office in town again, we were the #1 office in all of Grays Harbor County again! We sold more properties in the county this past year than any other office around. Congratulations and thanks to the customers, owners, agents, employees and friends of Coldwell Banker for making us the top real estate office in Ocean Shores and the entire County.

On a personal note, I would very much like to thank everyone who helped me in becoming the #1 real estate agent in not only Ocean Shores, but all of Grays Harbor County as well for the second year in a row now.

Ocean Shores Real Estate Brokerage 2009 Rankings
#1 Coldwell Banker - Volume Sold: 29.83%
#2 John L. Scott - Volume Sold: 21.70%
#3 Windermere (out of business now) - Volume Sold: 13.83%
#4 Prudential Grays Harbor - Volume Sold: 5.80%
#5 Premier Realty - Volume Sold: 5.63%
#6 Beach Realty - Volume Sold: 2.22%
December Home SalesOnly 11 Homes sold in December. Average selling price was $199,286. The cheapest one was $123,750 and the most expensive was a new bay front home coming in at $376,000.
December Vacant Lot Sales
11 Lots sold in December. Average selling price was $17,127. The cheapest one was unloaded for only $10,000 and the most expensive was only $33,000.
December Condo Sales3 Condos sold in December for an average sales price of $80,000 even. The new Short Sale pricing going on at the Dreamscape Condos down at the North Jetty has really drawn a lot of interest from buyers making crazy offers that the bank has been accepting. Get in while you can!


BrandNewBeachHomes.com is a real estate blog about new homes and new construction out at the beach. Take a look!

If you have any questions regarding Ocean Shores/North Coast Real Estate, call Jeff Daniel of Coldwell Banker Ocean Beach Properties at 360.581.9020 or visit my website at www.cityofoceanshores.com. Thanks! All real estate numbers and stats apply to the Ocean Shores real estate market. All statistics are supplied from the Northwest Multiple Listing Service.

Upcoming Events
Master Builder Home & Garden Show
February 6-7, 2010Second annual Twin Harbors Chapter Master Builders Home and Garden Show. Free admission and prizes will be given away every hour! Get the jump on home improvement and yard projects and be ready for the "Spring Fever"...
Antique & Collectible Show
February 13-14, 2010
8th Annual Ocean Shores Antique & Collectible Show will take place at the Ocean Shores Convention Center. Join them along with over 60 vendors for Valentine's Weekend!
Beachcombers Fun Fair
March 5-7, 2010
23rd annual event features exhibits, seminars, information booths, and vendors on Saturday and Sunday; a kid's science fair Saturday morning plus beach walks on Sunday morning.
Ocean Shores Moped Poker Run
March 26-28, 2010
The GWRRA Chapter E - 3rd Annual Moped Poker Run and Surf Watch will be held on March 26-28, 2010 in Ocean Shores, Washington (WA) Check-In will begin at the Polynesian Resort at 9:30am. Moped's out at 10am. Entry fee of $10/Pre-Registration, and $12/Day of for each person. There will be a Poker Run, Miniature Golf Competition, Live and Silent Auction, Cash Prizes, and more. http://www.motorcyclemonster.com/events/Moped-Poker-Run-2010-03-26-Ocean_Shores-WA.html
Razor Clam Festival & Chowder Cook-Off
March 27, 2010
Celebrating the natural bounty of "Coastal Living," this annual event kicks off Friday evening with a coronation dance honoring the Clam King & Queen. Saturday from 8 a.m. to 6 p.m., features a pancake breakfast, artisan marketplace, children's activities, live entertainment, dancing, cultural exhibits and the highly anticipated Clam Chowder Cook-Off. Come and cast your vote for the best professional & non-professional chowder on the Beach.

Razor Clam Dig Coming Up! After a stormy New Year’s opener, razor clam diggers will get another chance to hit the beach for a five-day opening scheduled to begin Jan. 27 if marine toxin tests show the clams are safe to eat. The Washington Department of Fish and Wildlife (WDFW) also announced tentative plans for a razor-clam dig in late February, pending the results of another round of marine toxin tests. For the dig planned this month, Long Beach and Twin Harbors are tentatively scheduled to open on evening tides Jan. 27-31, with digs also planned at Copalis and Mocrocks beaches Jan. 29-31. In addition, the National Park Service has scheduled a two-day dig Jan. 30-31 at Olympic National Park’s Kalaloch beach to coincide with those at the other beaches. Digging at all five beaches will be restricted to the hours between noon and midnight. Digging days and tides for Ocean Shores are:
Friday, Jan. 29, (5:58 p.m., -1.5 ft.) Long Beach, Twin Harbors, Copalis, Mocrocks
Saturday, Jan. 30, (6:41 p.m., -1.5 ft.) Long Beach, Twin Harbors, Copalis, Mocrocks, Kalaloch
Sunday, Jan. 31, (7:23 p.m., -1.2 ft.) Long Beach, Twin Harbors, Copalis, Mocrocks, Kalaloch A license is required for anyone age 15 or older. Any 2009 annual shellfish/seaweed license or combination fishing license is still valid. Another option is a razor-clam only license available in annual or three-day only versions. Descriptions of the various options are available on the WDFW website at https://fishhunt.dfw.wa.gov. Beaches scheduled to open are:
Long Beach, which extends from the Columbia River to Leadbetter Point.
Twin Harbors Beach, which extends from the mouth of Willapa Bay north to the south jetty at the mouth of Grays Harbor.
Copalis Beach, which extends from the Grays Harbor north jetty to the Copalis River, and includes the Copalis, Ocean Shores, Oyhut, Ocean City and Copalis areas.
Mocrocks Beach, which extends from the Copalis River to the southern boundary of the Quinault Reservation near the Moclips River, including Iron Springs, Roosevelt Beach, Pacific Beach and Moclips.
Kalaloch Beach, which extends from the South Beach Campground to Brown’s Point (just south of Beach Trail 3) in the Olympic National Park. In addition, WDFW has tentatively scheduled a late-February dig on the following dates and locations:
Friday, Feb. 26, (4:49 p.m., -0.7) Twin Harbors, Copalis, Mocrocks
Saturday, Feb. 27, (5:34 p.m., -0.9) Long Beach, Twin Harbors, Copalis, Mocrocks, Kalaloch
Sunday, Feb. 28, (6:16 p.m., -0.8) Long Beach, Twin Harbors, Copalis, Mocrock, Kalaloch
Beach News
This is where I get mine lately:

Jeff Daniel Associate Broker
Coldwell Banker Ocean Beach Properties
Cell Phone: 360.581.9020749 Point Brown Ave NW
PMB 1568, Ocean Shores, WA 98569
360.289.3111 (fax)

Remodelers' Weatherization Programs Help Homeowners Prepare for Winter

Remodelers' Weatherization Programs Help Homeowners Prepare for Winter

RELATED LINKSHouse Wrap Helps Protect Homes Against Weather
Des Plaines, Illinois, October 6, 2009—Winter is right around the corner and in honor of Energy Awareness Month, the National Association of the Remodeling Industry (NARI) recommends making energy-efficient upgrades as a way for homeowners to prepare for the season. Many remodelers are offering weatherization programs to help them reduce energy costs.
Mark of Excellence Remodeling is one such remodeling company that recently introduced a weatherization program. "The programs are funded by both state and federal governments, and the purpose is to raise consumer awareness of the types of upgrades that are needed to make homes more energy efficient," says Neil Parsons, vice president of sales and marketing for Mark of Excellence Remodeling, West Long Branch, N.J.
Weatherization is a term to describe various improvements made to buildings and homes to optimize energy efficiency. According to the U.S. Department of Energy (DOE), on average, weatherization reduces heating bills by 32% and overall energy bills by about $350 per year at current prices.
Through an evaluation known as an energy audit, homeowners are given a detailed report identifying problem areas in the home. Typical energy improvements include air sealing, insulation, ventilation systems or installation of green appliances approved by Energy Star.
"As consumers become aware that our energy resources are depleting and costs are rising with each year, energy efficiency is becoming a relevant topic in home improvement projects," says William E. Carter, president of NARI.
Even though each state provides slightly different programs with a variation of incentives, all of them provide the same benefits to homeowners.
"Homeowners notice their return on investment instantly after making energy upgrades in their utility bills. The other benefits are the rebates, the increase in home value from making the improvements, increased performance and durability and helping out the planet by conserving energy for future generations," Parsons says.
It's important to make upgrades now because soon most of the country will be entering the time of year when most of a home's energy consumption occurs. The DOE estimates that 56% of the energy use in a typical U.S. home comes from heating and cooling, making it the largest energy expense for most homes.
"Most believe that remodelers are busiest during the summer, but in actuality, the busiest time is during the fall when temperatures drop and homeowners start to feel drafts in their homes and are worried about heating costs," Parson says.
Another time factor is the program deadlines. Many state programs last until the end of the year, and energy-efficient improvements must be made within the specified time period to be eligible for rebates. To learn more about your state weatherization programs, visit http://www.dsireusa.org/.
However, Parsons doesn't think any of the weatherization programs will be going away for good. "Most likely, programs will be extended or modified after deadlines as the government continues to put a high premium on increasing energy efficiency," he says.
If you are considering an energy upgrade, there is no better time than now. "Homeowners who are considering this should seek out a certified contractor that you can trust to give you sound advice about making your home more efficient," Parson says.
This includes advice about making upgrades that fit within your budget. "There's no law that says you need to make all of the improvements at once. Make improvements you can afford now and continue the rest in a couple years," he says.
If you are planning a home remodel, NARI Remodelers can help homeowners find contractors who will take care of the entire remodeling process. Log on to http://www.nariremodelers.com to find a remodeler in your area. For green remodeling information, please visit www.greenremodeling.org.

Green Building Technology

These products were all recently featured at the 2009 International Builders Show. Click the picture for more info and more products...

Mortgage Insurance is Available on 2nd Homes with only 10% Down Again!

Mortgage Insurance is now available on 2nd/vacation homes with the following terms:


Purchase or rate/term refinance

Up to 90% loan-to-value

At least 720 credit score

41% or lower debt ratio


The Time to Buy is NOW!

For more info, please contact:


Carol Warfield
VP Real Estate Loan Representative
Central Region
300 E Market Street PO Box 1826 Aberdeen, WA 98520
P: 360.537.4044 C: 360.580.0187 F: 360.533.0489

CWarfield@BankofthePacific.com
Visit our website at http://www.bankofthepacific.com/





Jeff Daniel
Associate Broker
Coldwell Banker Ocean Beach Properties
Cell Phone: 360.581.9020
749 Point Brown Ave NW
PMB 1568, Ocean Shores, WA 98569
360.289.3111 (fax)

To Buy or to Build, is that the only Question?

On many occasions while showing new houses out on the beach, some buyers take the approach that they would rather get a loan to buy a vacant lot, then hire a local builder to build them their beach getaway. There are several differences when it comes to the financing options between purchasing an existing home or buying a lot and having a home built on it. I recently sat down and talked to Carol Warfield, loan officer with the Bank of the Pacific about some of the differences.

 

The first is the required down payment

On a conventional construction loan, you must invest 20% of the cost of the entire project, which would include land purchase and prep, cost of plans, plan review, building permit, well and septic design & permits if applicable, cost of construction including builders overhead, sales tax, etc. All closing costs on a construction loan are in addition to the 20% investment in the project itself, and generally run more than closing costs for a purchase loan.

With a construction loan, you can almost always count on two things - it will take longer and cost more than you expect. Another thing to watch is change orders. Once your construction loan is in place, 100% of the cost of change orders comes out of your pocket. 

On a purchase loan you know up-front what your costs will be. You will pay the required down payment, plus closing costs. There are many types of loan programs available for purchase loans - Conventional, FHA and USDA are among the most popular.

 

The second difference is interest rate

Single-close construction loan interest rates typically run about 1/2% higher than purchase loans interest rates. With either type of loan, you lock in an interest rate prior to closing the loan. On a construction loan, you pay interest monthly on the amount you’ve drawn during construction, and then the loan converts to a 15 or 30 year fixed rate loan, with principal and interest payments once construction is complete. You pay the same interest rate during construction and during the long-term loan. Because the interest rate is “locked in” prior to the home being built, the investor takes some risk by guaranteeing you that interest rate once construction is complete, so they tend to price them a little higher. The other potential hazard is that if you don’t complete construction in the allotted time-frame, you would either lose your interest rate lock, and get whatever the going rate is at the time construction is complete, or pay a fee to extend the interest rate lock.

On a purchase loan, the rate lock period is generally 30-45 days, just enough time to close the loan, so investors are more likely to price at current market rates. Once you’ve closed your purchase loan, there is no risk of losing your rate lock.

 

Another difference is the risk and hassle factor

A purchase loan is a pretty easy loan to process and close. All required documentation is gathered up front, generally two years income verification (tax returns and/or W-2s), two months recent paystubs, and two months recent asset statements. If you have non-wage income, you may be asked to supply verification of that information also, such as lease agreements on rental properties, trust agreements, child support, annuity or investment income, etc. Once your credit report is pulled, it is not a common practice to need an updated report before the loan closes. 

On a construction loan, all the same documentation is required up front, plus all the construction-project paperwork. Once construction is complete, some investors are requiring updated credit report and income documentation. I’ve seen instances where credit has deteriorated and income was reduced, causing the loan to no longer fit the program for which it was originally approved, sometimes making the loan ineligible for secondary market purchase. Then the loan would revert to a portfolio loan at a higher interest rate.

 

If you have any questions regarding new construction, new homes or builders in the Ocean Shores/North Beach area, please contact Jeff Daniel/Associate Broker with Coldwell Banker Ocean Beach Properties at 360.581.9020.

Whether you’re looking a home loan, construction loan or refinancing, please contact Carol Warfield at 360.537.4044.

Carol started with Bank of the Pacific in 1997 as a branch manager and has been originating home loans since 2004. Carol has over 20 years of banking experience which includes helping customers buy, refinance, and build their dream homes. With her vast experience and dedication to each customer, Carol ensures your transaction will go smoothly.

Top Builders in Ocean Shores

Current Scenario for New Construction in Ocean Shores

New construction sales in Grays Harbor County are certainly not immune to our economy. In fact, it's pretty obvious here that not only are sales down, but selling prices are also down as well. What's this mean? In means what we already know, buyers are scared to pull the trigger on writing offers because buyers are scared that they're going to lose their job or the ecomony will totally collapse, etc. It's what they're fed by the media so of course they believe it.

What I believe it means is that now is the time to buy as builders are now flexible with their pricing in order to get the inventory of their homes sold and so they can get on with building more as we all wait for the next boom to happen. Here are some numbers from the NWMLS:

Year to date New Home Sales

1/1/09 - 6/15/09 - Grays Harbor County

Pacific Beach, 1 Sale 

Ocean Shores, 13 Sales

Ocean City, 1 Sale

McCleary, 6 Sales

Westport, 1 Sale

Current Pendings

Pacific Beach, 1

Ocean Shores, 5

Aberdeen, 1

McCleary, 1

Breaking down the pending homes in Ocean Shores....

1  little cabin is pending at $137K

2 little 2/2 cabins at $155K average

1 Canal 2/2/2 at $121K

1 Interior 3/2/2, 1500 sq ft at $178,500

Breaking down the Solds in Ocean Shores....

4 little 2/1 cabins have sold for an average price of $149,875

1 little 2/1 cabin with a garage sold for $169,000.

2 little 2/2 cabins have sold for an average price of $150,500 (one bad resale/firesale)

1 2/2/1 little cabin for $172K

2 3/2/2 interior ramblers for an average of $181,700

2 2/2/2 small lake chalets for an average of $225K.

The numbers are Pretty dreary.... I know of two more sales that are coming in today (1 small lake chalet 2/2/2 for $230K and one smal 2/2/2 interior for $165K). It's hard to predict where the action is going to be this summer. It seems that all areas of new construction are getting action, the hope is that once July hits, all areas will continue to get it. 

Current inventory of New Construction: IT'S TOO HIGH!

47 New Homes on the market.

12 of those are Presales

35 are either completed or under construction

Out of the 35 New Homes

9 are 2/1 Little Cabins

1 Little 3/1

5 are 2/2 Little Cabins

3 are 2/2/2 Little Cabins

2 are 2/2/2 Interior Homes

7 are 3/2/2 Interior Homes

2 are 2/2/2 Freshwater Homes

2 3/2/2 Freshwater Homes

1 4/3/2 Interior

1 2/2.50/2 Small Lake Home

1 3/2/2 Bayfront

1 3/2/2 Ocean Front

2008 Comparison Numbers

Year to date New Home Sales 1/1/08 - 6/15/08 - OCEAN SHORES

27 New Homes sold in 2008 for an average price of $212,207/Average $/SqFt; $160.25, Average SqFt: 1,311, Average CDOM: 194 Days

2009 Comparison Numbers

Year to date New Homes Sales 1/1/09-6/15/09

13 New Homes sold in 2009 for an average price of $192,535/Average $/SqFt, $159.37, Average SqFt 1,097, Average CDOM: 142 Days

Conclusion: Inventory is too high. Builders need to keep building to earn a living. A high inventory will keep prices down. Best case is for a super summer with lots of sales. This certainly wouldn't be surprising since nearly 35% of all real estate sales out here on the beach take place during July & August.