Real Estate Information

Previously I did an analysis of sales by cities.   I thought it might be interesting to evaluate major neighborhoods in the Tri-City area.  In Kennewick Highway 395 divides east from west.  Richland has Van Giesen as the dividing line.    West Pasco is west of Highway 395, central is east to Oregon Street and east Pasco is east of Oregon. 

In Kennewick West Kennewick is the major sales leader with 417 sales last year.  The most expensive area is SW Kennewick (Badger Canyon and the Reita area).     In Richland the most sales and most expensive neighborhood continues to be South Richland (south of the Yakima River). 

West Pasco had 744 sales, far more than any other neighborhood in the Tri-Cities. 

Most expensive neighborhoods were South Richland, SW Kennewick, North Pasco and North Richland respectively.

Most sales by units were in West Pasco, West Kennewick, South Richland  and West Richland respectively.  If I were buying a home in the Tri-City area, I would consider this data for re-sale purposes. 

Overall the year of 2011, was a good year especially for the lower end of the market in the Tri-Cities of Washington State. Sales below $175,000 were generally in a Seller’s Market situation. Homes priced above $475,000 were challenged to find buyers unless it was new construction. We experienced over two years of supply in this range. Pre-owned homes in this price range will have to be in exceptional condition and be the best value to attract home buyers in 2012. Our sales for 2011 were 12.7% less than the year prior. Considering we had no federal stimulus funding during 2011, this is a respectable sales level. For those homes selling, it took a little longer to find buyers. The days on the market increased from 60 days during December 2010 to 94 days during December 2011.

One of my favorite holiday activities is to view the Senske Lawn and Tree Care Office light show.  The show is set to music and can be located at the corner of Deschutes and Quay.  From Columbia Center Blvd proceed east on Deschutes until you see the lights.  You can’t miss them.   Recommend you park off the street so as not to interfere with the view of others.    I believe the radio frequency is FM 101.5.

Wishing you and your family a wonderful holiday season and Merry Christmas!    Don Havre

When we review the sales in Tri-Cities WA, the West Pasco area is the area where sales are most active.  There are several reasons contributing to this situation.   Among them are land values are less than many other areas within our community and low to no down payment loans are very popular in the West Pasco neighborhood.  The video discusses three popular low down payment loan programs frequently used in the Tri-Cities.   It does not discuss the VA option.

And.. remember to give us a call for your real estate needs. 

On Saturday November 26, 2011, I thought I would do a follow-up of last week’s Monday Morning Real Estate.  Last week I presented a video on determining absorption rates or months of supply.  If you missed the video you can view it at http://youtu.be/ZxVX-g0yOCA

Taking the Pending Sales Procedure I analyzed all neighborhoods in the Tri-Cities WA area.  The chart below indicates that West Pasco continues to be the hottest real estate market while SE Kennewick is the slowest with over 9 months of inventory.  The SE Kennewick area is best defined as south of 10th Avenue, East of Hwy 395 and west of Washington Avenue.  Canyon Lakes is in the NW corner of this neighborhood.   I believe this area is more sluggish because of its distance from North Richland where many high tech jobs are located and the Umatilla Chemical Storage area is near closure.

The most expensive area is SW Kennewick which includes the Badger Canyon and East Pasco is the least expensive area.   As a home buyer or seller it’s recommended you consider this data when making your real estate decisions.

Many times I am asked “how is the market” because home owners are concerned about their equity and buyers are looking for a good deal.    Although this may seem like a simple question, the answer can be complex.   Is the market favorable to buyers or sellers?  The video at right helps answer this question.

I reviewed the national real estate market from January 1, 2011 to Noverber 1st.  The video below identifies my findings.

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.

Last week I heard on the news that a couple of chain retailers/ restaurants are expanding additional outlets in the Tri-Cities.  They would not be making these capital expenditures if they did not have a conviction that our market will continue to expand. 

One of the best measures of a community’s growth is the monitor the area’s newly platted residential lots.    The September 2011 stats indicate that City of Pasco had 691 newly platted lots last year; therefore to be on a consistent time-line, the city should have approximately 518 lots through September.   The chart below indicates the city had only 231 lots.   Meanwhile, West Richland is showing similar lot development as last year and both Kennewick and Richland are well ahead of last year’s lot development.

Our market showed signs of increased strength last month.   The absorption rate (months of supply) decreased slightly from the previous month.    The market was exceptionally strong for homes priced below $175,000.  We experienced a surge in home sales in the middle market of $275,000 to $325,000.  Absorption data in this range was from 3.1 months to 4.6 months of inventory.   Three months and below is considered a seller’s market.   Homes priced above $475,000 are experiencing decreased sales, especially older homes.  We have nearly two years of inventory in this price range.

Total sales through September 2011 were 2145 homes.  This is the lowest sales to September for the last three years.   The median sales prices continue to climb.  New construction and lot development are contributing factors.