Frank Wilson has been in the real estate industry for more than two decades. His background includes being a state certified instructor and co-owner of three real estate offices. He is past president of the Kitsap County Association of Realtors as well as the association’s 2005 Realtor of the Year. Currently, he is serving a three-year term on the Northwest Multiple Listing Service’s board of directors.
Known for his straightforwardness, Wilson is also credited with launching the radio show Realtor Radio, which answered questions about the local market. A resident of Kitsap County since 1987, he is currently the branch managing broker of the John L. Scott office in Poulsbo, where he manages about 50 brokers. The Kitsap Peninsula Business Journal sat down with Wilson to get a feel for the “state of the local real estate market.”
KPBJ: During the last year or two, there were some wildcards affecting the market (first-time homebuyer incentives, ARM adjustments etc). Have things settled down to a more predictable course?
Wilson: In some ways, yes. It seems that our economy has bottomed and good news seems to be outweighing the bad. Last year, the market was being influenced by artificial means. From here, I would think we will begin to see a slow, steady crawl back to normal. The high number of short sales and bank sales needs to work through the system before we will see what we used to call “normal.” Short sales and bank-owned properties will be in the mix for the next three to five years.
KPBJ: How does the last downturn compare to previous cycles — has it been significantly different, or just the usual change that realtors see about every 10 or so years?
Wilson: This down cycle was very much different than the others because it was an across-the-board down cycle: for stocks, businesses, the economy, jobs. I’ve seen the market go up and down, up and down but there’s been counterbalances. What makes this different is so many things happening at once. Some people say there’s been nothing like this since the Great Depression.
KPBJ: Any major changes, or upcoming ones, that are affecting the market?
Wilson: Last time we saw an across-the-board fall (during the Great Depression), a lot has come out of the debacle. For example, the Securities and Exchange Commission was formed; the Federal Housing Administration was created to ensure homeowners could renew their loans and get loans longer than five years; Federal Deposit Insurance Corporation was started to protect money the public had in the bank. It remains to be seen what comes out of it this time. I think it’s too early to tell — there’s still stuff to come out of that. What’s affecting us today is the number of foreclosures and what the banks will do with those, along with short sales.
KPBJ: Are consumers changing too?
Wilson: It’s too early to tell. When we entered the bubble, people were using their homes like ATMs to finance boats and other things. They were also using them to make money. For a little while, the market was feeding that insanity… I think people are becoming more conservative, sometimes not because they’re choosing to, but because the banks are making them.
KPBJ: Some agents are saying a slow recuperation is actually healthy because it’s more sustainable, would you agree with that? Why?
Wilson: The slow pace is always so much better. And you don’t want the market to outpace income. The median income in Kitsap County is $60,000-$70,000, which could buy a $260,000 home. How are our children going to afford to live in this community and work in their community if their income couldn’t keep up with the increase in home prices? This (slow rebound) is resetting things, but we still don’t know what will happen to interest rates.
KPBJ: Are Realtors having to do things differently to adjust to new consumer demands?
Wilson: From a consumer standpoint, it’s back to common sense, back to reality. If you want to buy a home, save money and keep good credit. It’s an honor to own a home but with it, comes a lot of responsibility. For Realtors, there’s more education involved.
KPBJ: Are things looking up in the long term?
Wilson: Why do people come to Kitsap? Because of the quality of life, quality of schools, the pace of life. That will keep our market attractive, it will keep people coming to Kitsap. As the economy recovers, Harrison (Medical Center) will move forward with expansion, and medical care is one of the dynamics that make Kitsap a magnet.
