Tri-City Area and Real Estate Blog

Once again the Tri-Cities has resisted the downward trend of property values across the nation, and finds itself in contrast with rising property valuations. Franklin County has been the fastest growing county in the state for the last two years and also one of the fastest growing in the nation. Officials in Franklin County expect values to continue to rise at an average of 3-4 percent as they prepare to mail out revaluation notices within the next month. Benton County anticipates remaining at the current level.

Many other communities within our state are facing devaluation at a significant rate which in turn decreases their tax base. For many its been decades since they’ve lost ground in property valuations. According to a recent market survey in the Tri-Cities, the first quarter of 2010 shows that the median residential resale price encompassing the bicounty area is $176,600, thus being an almost 6 percent increase over the entire year of 2008.

Franklin County continues to see it’s main increase in values due to the development of West Pasco and some large farms. Meanwhile, there are some pockets of decrease in the county, mostly around the Connell area because of unspecified market conditions there.

Much of the success of the Tri-Cities’ ability to remain strong, is due to the stimulus money that came into the Hanford cleanup projects, however, many individuals and organizations have worked diligently to diversify our community so that not all economic strength comes from strictly the Hanford area, but instead comes from growth in agricultural, food processing, and tourism dollars. They have been very successful in their endeavors which in turn have created the economic stability that the Tri-Cities and surrounding communities enjoy today.

The Hanford Area Economic Investment Fund wants business owners from Benton and Franklin counties to know about their loans, which can range from $150,000 to $500,000. The loans are awarded for buying land, research & development, equipment or other improvement projects, and the applicants must demonstrate the need for and the ability to repay the loans.  For more information call 943-9185 to speak with Art Tackett or email: atackett@bfcog.us

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 national housing market is on a rebound and experts believe that a recovery is in gear for 2010, say key speakers at the Regional Economic Outlook forum held recently at the TRAC in Pasco.

Several local experts are optimistic and they believe the Tri-Cities ongoing growth will be based on non-Hanford related industries. Healthcare, with all three of the Tri City hospitals investing in newer facilities, are strong employers who are creating more jobs as they grow, and with an aging population moving into the area for retirement reasons also helps with the growth in the heathcare industry.

Population growth and a stable economy has assisted in stabilizing the local housing market and the trend appears to be going to continue for the foreseeable future, according to the Tri City Association of Realtors.

WSU President Lane Rawlins believes that the continued economic success here rides on economic diversification, continued growth in agriculture and making investments in education and transportation.

The Fiserv’s Report came out recently and indicated that Kennewick topped the nations growth of housing prices over the past 3 years, with values by 8.9 percent and are expected to continue growth by approximately 3.4 percent by next summer.

Jobs in our Tri City area are strong and steady which acquaint to more homes being sold to accommodate those folks coming into the area for the jobs, particularly those in the Hanford area or associated businesses.

Homes in Kennewick, Pasco, Richland and our neighboring towns, are selling quickly, with the market under $200,000 being the fastest sellers.  New homes are being built very slowly due to the restrictions being placed by lenders, but some of the more established builders are still building new homes.

Unemployment in our Tri Cities area is among the state’s lowest and this has also contributed to the steady growth of home sales. Home values have increased, however, the inventory of homes for sale is shrinking because of the influx of new families to our area and the first-time homebuyer credit has afforded new buyers the opportunity to get into a home with the $8,000 tax credit.

If you are looking to relocate to the wonderful, fun and affordable Tri Cities, we’d be more than happy to assist your in your real estate needs. Please take a look at our website, where you can view any home currently listed in the MLS or you can input the parameters you seek in a home and have automated listings sent to your email address, the moment a home fitting your needs comes on the market. 

We at Distinctive Properties, Inc., are here to serve you and help you find the home of your dreams.  www.distinctiveprop.com

In spite of the ongoing recession, the Tri-Cities is faring much better that the rest of the state and nation. There was a gain in August of 2,400 nonfarm jobs, which is more than a 2.5 percent growth. Our strengths of food processing, health care, higher education and the Hanford area jobs made for a stable environment in Kennewick, Pasco and Richland.

This isn’t a “boom” period for the Tri-Cities, nor is it a “bust”. The wonderful work that has been done in the way of diversifying this area over the last 20 years, has made a marked improvement in our communities being able to weather the ups and downs of the economy.