Here is a Tri-City Herald article on the Tri-City economy. We need not listen to the national news, and just keep on living. We are in a good place in Kennewick, also Richland, Pasco and W-Richland. The rest of the outlying area is coming along for the ride.
http://www.tri-cityherald.com/2010/05/03/1000321/economy-tri-city-cost-of-living.html
Nobody is thrilled with the slowly rising cost of gas prices, and of course now that summer is fast approaching, we all know the prices will jump a little higher a little faster because refiners typically switch to more expensive blends at this time of year. Then of course the taxes in Washington State makes it even higher! But how does this news tie in with housing price affordability? For those folks that commute longer distances, perhaps to the far out Hanford area here in the Tri-Cities or others in larger cities, the effect of higher gas prices can be a factor in how much of a home they can afford to purchase. Typically, transportation costs account for approximately 12 percent of the household income if you live in an “efficient” neighborhood, i.e., one with walkable streets, easy access to transit, and the close proximity of stores and services. However, when you have to drive long distances to work or to reach key services, that percentage rises to as much as 32 percent of your household income. That large of a chunk out of your income can most certainly affect your ability to buy the kind of home you thought you could afford.
The Tri-Cities housing market has been fortunate compared to other parts of the nation as far as the number of foreclosures that have occurred here, but some folks have had to sell their homes in a short sale situation. It’s taken more than a year, but the federal government’s short-sale rules took effect April 5. Lenders must now use standardized forms and time lines, and if they already participate in the government’s program for modifying loans of troubled borrowers, they’re limited in the restrictions they can impose when they process short sales. Fannie Mae and Freddie Mac are set to release their own versions of the rules, though they haven’t said when. When they do, most loans will apply (FHA-backed loans are the exception). For more, watch this video “Understanding Federal Short Sales Rules” at www.REALTOR.org/shortsales.
Do remember the fervor of the Tri-City Americans when they first came to the Tri-Cities in 1988? Do you recall the two young men that became household names here in town? Well Stu Barnes and Olie Kolzig, both went on and became NHL superstars yet maintained homes here in the Tri-Cities during their careers. Wednesday marked the 5 year anniversary of their ownership in the Tri-City Americans – who are now vying for the Western League Championship for the 2nd time in 3 years, and they’ve also taken the U.S. Division Championship title three times. These two outstanding men, their coaches and front office staff have built an outstanding team over the years, provided them with trainers and high quality facilities to train and practice in – and all of that care and concern for the players has created an outstanding Tri City Americans team, and in turn, the community has become a huge fan base. Hockey in the desert sounds kind of funny, but here in the Tri-Cities we love our Ams! Good luck boys and show ‘em what you’re made of! We’re behind you 110%.
Job growth in the Tri-Cities continues to increase on a monthly basis, with 96,800 nonfarm jobs, which is a 3.9 percent increase over the same month in 2009. The fields of manufacturing, professional and business services, retail trade and the government sector saw the most growth during that same period. The cushion for the Tri-Cities that negated some of the effects felt in other parts of the country was federal stimulus money, however, the Tri-Cities will still need to continue it’s drive towards diversification in order to stabilize the economy and create more jobs.
Unemployment in the Tri-Cities dropped marginally from 9.0 percent in February to 8.2 percent last month. Many new workers have been drawn to the Tri-Cities because of strong job growth and relative stability in the economy.
With much credit going to the tax credit available to both first-time and previous homeowners and lots of affordable homes for sale, the housing market in the Tri-Cities is strong and on the increase. With a 30 percent increase in March 2010 from the same month in 2009, sales are on the rise according to the Tri City Association of Realtors. The $8,000 tax credit for first-time homebuyers and the $6,500 tax credit for previous homeowners becoming buyers again has really stirred anyone sitting on the fence about purchasing a home. Homes sold in March averaged $195,000 which was an increase of $10,00 from February, which is quite a jump for housing in any market!
