ECONOMIC OVERVIEW

After a period of above-average growth, Washington State has seen a modest slowing in employment growth, but we continue to add jobs at a respectable rate. The State unemployment rate was measured at 5.3%, marginally above the national level, but it is trending in the right direction.

Although growth continues to be uneven across the state, there are some encouraging signs which suggest that all of our main metropolitan areas should see positive job growth for the foreseeable future.

HOME SALES ACTIVITY

• There were 22,207 home sales during the third quarter of 2015, up by 14.1% from the same period in 2014.
• For the first time in several years, there were no counties that saw annual decreases in home sales.
• The growth in sales was most pronounced in Kittitas County, and all but two counties saw double-digit percentage increases from the same period last year.
• The lack of available inventory in the region continues to be a concern. Listings in the third quarter were down by 18% from the second quarter, and down by 24.5% from the third quarter of 2014.

• HOME PRICES

• Prices in the region rose by an average of 6.3% on a year-over-year basis and were 9.6% higher than seen in the second quarter of 2015.
• The only county where home prices fell on an annualized basis was in Kittitas County, but the drop was a miniscule 0.5%. Kittitas County saw sale prices grow by 5.8% between the second and third quarters of this year.
• When compared to the third quarter of 2014, San Juan County showed the fastest price growth with an increase of 14.6%. Double-digit percentage gains were also seen in four other counties.
• As long as inventory constraints persist, it is likely that price growth will continue. However, if interest rates rise in 2016, as they’re expected to do, we will likely see price growth slow.

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• This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates, and larger economics factors. For the third quarter of 2015 I have moved the needle a little farther in favor of sellers. Although sales did slow between the second and third quarters, I attribute this to a lack of inventory rather than any other factors. Additionally, interest rates dropped between the second and third quarters, which made buying more favorable.

  The persistently low levels of inventory in the region remain a concern. Such an imbalance between supply and demand is unsustainable. When I look at the ratio between listings and pending sales there are some counties with less than two months of inventory, which is troublesome. Any number below four months is certainly considered to be a seller’s market and, in my experience, a prolonged period of time with less than six months of inventory results in an unstable market.

  In normal housing market cycles, when such an imbalance exists we could expect home builders to fill in the gap with inventory, but this has not happened thus far. Unless we see a rapid escalation in construction activity, the market will remain remarkably tight well into 2016.

   

  Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has over 25 years of professional experience both in the U.S. and U.K. 

   

http://www.windermere.com/blogs/windermere/posts/western-washington-real-estate-market-update–4

Click on this link to take a look at where we've been and what interest rates look like today…https://bay162.mail.live.com/default.aspx?rru=compose&to=bnunnikhoven%40gmail.com#!/mail/ViewOfficePreview.aspx?messageid=54e01c03-91c1-11e2-81d3-00215ad7f15c&folderid=00000000-0000-0000-0000-000000000001&attindex=0&cp=-1&attdepth=0&n=1787595095

• 85,870 – Homes sold in Washinton in the 3rd quarter for 2011; up 0.8% from the previous quarter

• $225,300 – Median home sales price in Washington, down 9.5% from 2010

• 60.7 – A typical family has income 60.7% ABOVE that required to qualify to purchase a median priced home, this is a record high!!

• 26,471  –  Number of homes currently in the Foreclosure pipeline as of September 30, 2011

• 5.0%  –  Apartment vacancy rate in 3rd quarter

• 3,625  –  Single family building permits issued in Washington during the 2nd quarter, up 26.7% from last year
• 5,001  –  Number of completed foreclosures in our state for the 3rd quarter, down 30.7 % from 2010
• $952  –  Average apartment rent in Washington

All information taken from the Washington Association of Realtors winter 2012 magazine

Yes, staging a home helps it sell faster and at a higher price for a few reasons. In today’s market, roughly 85% of homebuyers start their search on the internet forming impressions within seconds of viewing a home. When a home is staged well, it photograph’s well and makes the kind of first impression that encourages viewers to take the next step which is contacting their Realtor for a showing.

Studies have shown buyers decide if they’re interested in a home within the first 30 seconds of entering it. Homes that are staged look more ‘move in ready’ and that’s appealing to any buyer.

Data compiled by the US Department of Housing and Urban Development indicate that staged homes sell for approximately 17 percent more than non-staged homes.

For more information on staging or if you’re thinking of selling your home, contact me!

A recent market comparison for sales activity from 2010 to October 2011 featuring residential and condominium sales combined found the following;

• Sold units in Whatcom County for 2010 was 1855 with an average price of $276,522
• Sold units in Whatcom County for 2011 (thru October 31) was 1744 (down approx. 6%) with an average price of $269,816 (down approx. 2%)
• 199 Bank Owned homes sold in 2010
• 223 Bank Owned homes have sold this far in 2011
• In 2010, Lynden sold 171 homes with an average sales price of $277,024
• In 2011, Lynden sold 176 homes with an average sales price of $276,635 (down less than 1% from last year and an increase in homes sold!)

Is our market finally reaching the bottom? Interest rates are still at an all time low and that’s only going to help encourage buyers to make that purchase and eventually raise the ‘bottom’.