Pasco Building Permits Strong- Lots Short Supply
Last week I posted “Newly Platted Residential” information. This week I thought it would be advisable to follow-up with a review of the building permits issued by areas. Of course, the lots have to be development prior to issuance of building permits. I noted that the Pasco area had fewer available lots as compared to last year.
As far as building permits are concerned, Pasco has been very active building on available lots. Unless lot development increases, Pasco may be facing a lot shortage. Last week I wrote on offer representing a buyer on the second to last lot for a major builder in North Pasco area. What makes this area especially attractive is that the area is within the area qualifying for USDA loans. USDA loans require zero down and the seller may pay closing costs. The majority of the sales for this builder have been financed by USDA loans. This builder is moving its operations to Kennewick where it most likely will face higher lot development costs and will not be within a USDA area. Therefore, economic factors imply the company may be facing an uphill challenge as compared to its Pasco development.
With interest rates at record lows, the buyers continue to require down payments to purchase unless qualifying government loans are available.