Every year since 1984, Windermere associates have dedicated a day of work on Community Service Day, on which we join together to complete neighborhood improvement projects. Community Service Day gives us an opportunity to give back to the communities where we live and work. Each of our offices selects a neighborhood project; we clean, landscape and repair parks, playgrounds, schools, shelters and community buildings. June 21st our office will be closed until Noon.
House Prices Projected to Increase
Experts have projected that U.S. home prices will appreciate by 5.4% in 2013. If we assume that prices will rise about the same 5% over the next twelve months, here is the difference a buyer will pay if they wait a year.
Source: kcmblog.com
April FAST FACTS
April active listings were 1294, up .8% compared to last year this time
376 new properties went under contract, 2.1% lower than April 2012
261 closings, 11.1% higher than last year this time
Average price of homes is $203,803, $4,093 higher than the same time in 2012
Months of Inventory was 5.0, compared to 5.5 months in April 2012
Inventory is up, pending sales are lower, and closed sales have increased
76 New Construction homes were sold
Current New Construction inventory is 215
This month we have added a new chart for you that shows the average days on the market for the different areas in the Tri-Cities. We can track the average days that homes are on the market before receiving an offer and also track them based on the location of the home. For example, the chart will show you that the average days on market for homes in Southeast Kennewick is 104, and homes in Central Kennewick is 63. There are a lot of reasons why some areas sell faster than others and some areas seem to go in cycles. Please take a moment to check out your area.
As far as the overall Tri-City market, once again steady is normal. Across the board our numbers showed very little change over April 2012. In fact, Active Listings, Under Contract and Average Sold Price were within ± three percent from last year. Kennewick General Hospital is moving forward in Southridge, Kadlec finished the Emergency Room Clinic on Hwy 395 and announced another clinic on Clearwater next to Winco and Benton Franklin Transit opened a new bust stop near the Southridge Sports Complex. A lot of activity continues to happen in the Tri-Cities.
March FAST FACTS
SEQUESTER FURLOUGH NEW DOE SECRETARY LEAKING TANKS?
With headlines like these, you might expect our market to slow down or go into hibernation. However, once again the Tri-Cities market showed its resilience. Buyer activity in March resulted in 407 offers made/accepted, the most sales in the Tri-Cities since April 2010 (the heyday of the Home Buyer Tax Credit Program). While the demand for homes has increased, the supply has remained “normal” for this time of year thus creating some shortages of inventory in select price ranges.
Money Magazine’s headline for April read “Housing is Back!”. Their research stated that 72% of the public believes that their home’s value will increase in 2013, with ¼ of them believing that it will appreciate more than 5%.
Where do you think your home values are headed?
Just drop us an email at YourOpinion@GroupOnetricities.com
FEBRUARY FAST FACTS
What is the old saying? If it’s not broke don’t fix it. That could be said about our local Tri-Cities real estate market. As the weather warms up, we are starting to see multiple offers on homes in certain price ranges. Listing inventory is following the usual trend of previous years. Simply meaning that, as we move toward summer we should see an increase in homes on the market. If you are thinking of moving, get into the market before the competition heats up. It appears that the lending business is loosening up their requirements ever so slightly and programs like the USDA (zero down financing) are allowing buyers additional opportunities as well as benefiting the seller. This financing is area specific so contact your local Realtor for the current boundary lines.
The Federal Housing Finance Agency (FHFA) just updated their Annual Home Price Index for the fourth quarter of 2012. This report tracks the rate of appreciation for Metropolitan Statistical Areas (MSAs) and the news was good for the Tri-Cities. Our current rate of appreciation for 2012 is +1.44%. In the last six years, while most of the country was experiencing a huge depreciation in home prices, the Tri-Cities enjoyed a modest increase of 6.91% (2007-2012). We are looking forward to a very busy year. If we can be of any help please give us a call.
Several government agencies are reviewing data to determine what will be the minimum down payment required under the new Qualified Residential Mortgage (QRM) guidelines scheduled to be revealed in the next few months. In the original Mortgage Market Note issued by the FHFA, it was suggested that loan-to-value (the percentage of the overall purchase price which was being borrowed) was a major factor in determining if a loan would default:
“For most origination years, requirements for borrower credit score and loan-to-value ratio are the factors that most reduce the ever-90-day delinquency rate of mortgages acquired by the Enterprises that would have met the proposed QRM standards.”The note then made the following proposal:
“An LTV ratio qualified residential mortgage must meet a minimum LTV ratio that varies according to the purpose for which the mortgage was originated. For home purchase mortgages, rate and term refinances, and cash-out refinances, the LTV ratios are 80, 75, and 70 percent, respectively.”Basically, the original note suggested that a 20% down payment should be the new guideline. We realize that there has been much debate on this issue since and that the minimum down payment required under the new QRM guidelines will probably be less than 20%. However, we can’t know for sure. Bloomberg reported last week:
“The six regulators drafting the separate QRM rule, including the Department of Housing and Urban Development, the Office of the Comptroller of the Currency and the Securities and Exchange Commission, must decide whether to include such a requirement — and whether to make it less than the 20 percent they originally proposed.”Will it be more difficult to qualify for a mortgage after the new QRM rules are announced? Probably As David Stevens, President of the Mortgage Bankers Association said during a speech in Washington on Jan. 16:
“I have consistently warned of the regulatory tidal wave to come and it’s finally upon us. These changes will impact business operations and the future of mortgage access for years to come.”
DECEMBER FAST FACTS
• December active listings were 1204, up 12% compared to last year this time
• 217 new properties went under contract, 2.8% higher than December 2011
• 217 closings, 12.1% lower than last year this time
• Average price of homes is $211,230, up $10,699 from the same time in 2011
• Months of Inventory was 5.5, compared to 4.4 months in December 2011
• Inventory is up, pending sales are up, and closed sales are down slightly
• 53 New Construction homes were sold
• Current New Construction inventory is 181
OUR COMMENTARY
As the national real estate market continued to show strong signs of recovery, our local Tri-Cities market continued its steady, consistent trend. December’s numbers were consistent with the overall 2012 activity. When we look year vs. year, our inventory is up over last year, our under contracts are up over last year and our average sold price is up. The trend looks good for 2013. Our local economy survived the workforce transition at the Hanford project and the uncertainty that comes from the Presidential election. There is a lot of interest in our area from not only local and regional investors but also from international investors. The Tri-Cities has room to grow, affordable home prices and a strong economy to support the growth. We see continued steady sales activity and see no pending increase in interest rates for 2013. Stay tuned.
Every year-end housing report revealed that the real estate market is recovering quite nicely. Here is a quick synopsis of each:
• November active listings were 1307, up 11.7% compared to last year this time
• 274 new properties went under contract, 15.6% higher than November 2011
• 225 closings, 6.6% lower than last year this time
• Average price of homes is $203,813, up $3,889 from the same time in 2011
• Months of Inventory was 5.8, compared to 4.9 months in November 2011
• Inventory is up, pending sales are up, and closed sales are down slightly
• 61 New Construction homes were sold
• Current New Construction inventory is 193
The elections are over, and after all of the pledges, promises and debates, our local real estate market continues to chug along. Activity remained strong and con- sistent with just a “normal” slow down during the 10 days before the actual elec- tion. A national organization reported that the Tri-Cities area ranked 6th in the nation in “the fastest growing” communities and predicted 7.4% population growth over the next 5 years.
The national real estate experts are predicting that the young adults (18-34) will be re-entering the market in 2013. This segment of potential buyers have been sitting on the sidelines while they look for jobs, pay off student debt and build their credit. Their delay in entering the market (despite great interest rates) has created a pent-up demand and may create increased activity in 2013.
Warm up with hot cocoa, coffee, cider and cookies while you enjoy the beautiful Christmas lights and decorations at the first annual Festival of Lights at Horn Rapids.
When: December 15th at 5pm
Where: Horn Rapids Community
