Tri-City Area and Real Estate Blog

Selling your home? Invite the buyers to take a closer look. The front door to your home should welcome buyers to enter. Painting the front door in a glossy, cheerful color that complements the exterior is one of several methods to do just that. Cleaning, polishing and/or replacing the door knocker, locks and handles is another distinctive invitation. And be certain your house numbers are visible and easy to read. A new welcome mat and a group of seasonal potted plants and flowers by the entry is always a good idea.

Become a distinctive buyer or seller. Join Distinctive Properties, Inc. for solutions to your housing needs. View the link below to see our current weekly statistics regarding the housing market.

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The Tri-Cities has been so fortunate to have escaped the housing bust throughout the nation, however, the large price jump for lumber is something we can’t avoid. The rising lumber costs equates to rising costs for builders and thus, rising housing costs.  Lumber prices have doubled and then quadrupled over the last year which has been a shock for builders and contractors. With the lowering of production comes laying off of employers and eventually the closing of mills. As the housing market returns production is having a tough time keeping up.

All of this means higher home prices for buyers, at least for awhile. The local Home Builders Association believes that mid-summer the lumber prices will drop again which in turn should drop the home prices. There is, however, a gamble in waiting for the right home because if you wait for the lumber costs to go down, you might face higher interest rates as they slowly climb upward.

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.

Home sales in the Tri Cities was strong during the last quarter of 2009, and January of 2010 started out on a very positive note with average home prices up from 2009. January 2009 showed an average of $184,025, and January 2010 showed $195,703 for average home prices. First-time homebuyers have contributed greatly to those numbers because of the $8,000 tax credit that was extended through April 30, 2010. The Tri-Cities housing market has been stronger than most other communities in the nation and we are hopeful that this trend will continue. The area’s foreclosure rate was 0.5 percent in comparison to the rest of the our nation where the rate is 2.1 percent. Steady home prices, interest rates and a stable economy here in the Tri-Cities makes for a bright outlook for 2010.

The real estate forecasting company, Local Market Monitor, indicates a strong real estate market for the Tri Cities again this year and recommends that the Tri Cities is a place where investing in housing is a good move. They have placed the Tri Cities 4th on the list of 10 smaller communities with strong markets.

With the predictions that housing prices to remain the same or increase a bit this next year, local officials of the Tri City Association of Realtors advise that a record number of homes were sold in 2009, and the homes under $300,000 are the strongest range.

The inventory of homes in the Tri Cities is right at 1,000 for sale right now, which is down and that inventory would be depreciated in approximately 4 months if there were no other homes added to the market. Higher end homes ($400,000+) are taking longer to sell, but the $0 to $300,000 range is where the majority of the sales are occurring.

The wonderful amenities of the Tri Cities bring potential buyers from the west side of the state and beyond. Recreational activities in this warm and sunny climate is attractive to people interested in the possibility of a 2nd home. The wine industry draws people from all over the state and many have discovered what we all know – the Tri Cities is a great place to live!

Pasco and Kennewick have had increases in the number of new home building permits in 2009, while Richland has seen a decline in housing permits, although Richland is seeing many commercial or Hanford related projects coming their way in the very near future.

Federal money brought into the Tri Cities and Hanford Enterprises, along with continued job growth throughout the area in other industries is assisting in keeping the Tri Cities a strong economy and the real estate market stable. The first-time and long-term tax credits that have been instituted are bringing more buyers to the real estate market in the Tri Cities as well. Additionally, the media nationwide has positively focused on the Tri Cities and our continuing job growth and housing market as being a safe market to invest in.