Homes resales and the median home price in the Tri-Cities continue to increase at a time when median prices in the rest of the state are falling, according to a Washington State University report.
Home sales in Washington surged in the second quarter compared to a year ago, but statewide median prices continued to fall, though the decline was much smaller than seen in recent quarters, says the report by Washington Center for Real Estate Research.
The Tri-Cities registered an increase of 5.5 percent in the median resale price, together with a 33 percent increase in home resales.
It's perhaps the only community in the state to see significant growth, thanks largely to federal stimulus money, said Glenn Crellin, the center's director. The median home price in Benton and Franklin counties was $173,100 in the second quarter.
Stimulus money earmarked for Hanford cleanup has resulted in strong employment and housing markets in the Tri-Cities.
The pending end of federal tax credits for homebuyers clearly boosted sales in the April to June period, the research center said. Statewide, the number of homes sold rose 27.5 percent from the sales rate of the second quarter last year. Sales were up 3.5 percent from the first quarter of this year.
Crellin said nearly every county in the state saw increased sales activity compared with a year ago.
In the Tri-Cities, 1,150 homes were sold from April to June, according to the Tri-City Association of Realtors.
"Our market continues to be steady," said Jeff Thompson, co-owner of Windermere Real Estate Tri-Cities. "We haven't seen a lot of foreclosures," which could have lowered prices.
New homes are being constructed at a reasonable pace to add to the Tri-City housing inventory, Thompson said. At the end of June, 1,018 homes were available for sale.
The local economy continues to draw people into the Tri-Cities, he said. Homes in the $100,000 to $225,000 price range continue to appreciate up to 2.5 percent annually, he said.
In July, about 12 percent of the total homes sold in the Tri-Cities were in the $350,000 and above price range, according to Windermere data.
The inventory of high-end homes in the state is higher, and they tend to move slowly, Crellin said.
Sometimes high-end homebuyers -- who recently have moved into the area -- face a credit squeeze, Thompson said. They are unable to sell their old homes because the housing market in other parts of the country has slowed considerably.
"We need to educate people that the Tri-Cities is different. We are an appreciating market," Thompson said.
The five-county Central Puget Sound region had home sales of 49,980, more than half of the statewide total.
The median sale price during the second quarter was $246,800, which was 6.9 percent less than the median a year earlier, the center said.
The highest median price was $375,500 in King County, which replaced San Juan County as the price leader for the first time in several years. The lowest median price was $107,500 in Columbia County, the center said.
Among the urban areas, the biggest decline was 9 percent in Snohomish County.
Low prices and low interest rates made homes more affordable for households with good credit and reliable jobs, the center said. The housing affordability index showed a slight improvement to 136.4, meaning the median income family had 36.4 percent more income than the minimum required to buy a median price home with a 20 percent down payment and a 30-year mortgage.
The housing affordability index for Benton County was 177.7 and for Franklin County was 148.5.
Home sales in Washington surged in the second quarter compared to a year ago, but statewide median prices continued to fall, though the decline was much smaller than seen in recent quarters, says the report by Washington Center for Real Estate Research.
The Tri-Cities registered an increase of 5.5 percent in the median resale price, together with a 33 percent increase in home resales.
It's perhaps the only community in the state to see significant growth, thanks largely to federal stimulus money, said Glenn Crellin, the center's director. The median home price in Benton and Franklin counties was $173,100 in the second quarter.
Stimulus money earmarked for Hanford cleanup has resulted in strong employment and housing markets in the Tri-Cities.
The pending end of federal tax credits for homebuyers clearly boosted sales in the April to June period, the research center said. Statewide, the number of homes sold rose 27.5 percent from the sales rate of the second quarter last year. Sales were up 3.5 percent from the first quarter of this year.
Crellin said nearly every county in the state saw increased sales activity compared with a year ago.
In the Tri-Cities, 1,150 homes were sold from April to June, according to the Tri-City Association of Realtors.
"Our market continues to be steady," said Jeff Thompson, co-owner of Windermere Real Estate Tri-Cities. "We haven't seen a lot of foreclosures," which could have lowered prices.
New homes are being constructed at a reasonable pace to add to the Tri-City housing inventory, Thompson said. At the end of June, 1,018 homes were available for sale.
The local economy continues to draw people into the Tri-Cities, he said. Homes in the $100,000 to $225,000 price range continue to appreciate up to 2.5 percent annually, he said.
In July, about 12 percent of the total homes sold in the Tri-Cities were in the $350,000 and above price range, according to Windermere data.
The inventory of high-end homes in the state is higher, and they tend to move slowly, Crellin said.
Sometimes high-end homebuyers -- who recently have moved into the area -- face a credit squeeze, Thompson said. They are unable to sell their old homes because the housing market in other parts of the country has slowed considerably.
"We need to educate people that the Tri-Cities is different. We are an appreciating market," Thompson said.
The five-county Central Puget Sound region had home sales of 49,980, more than half of the statewide total.
The median sale price during the second quarter was $246,800, which was 6.9 percent less than the median a year earlier, the center said.
The highest median price was $375,500 in King County, which replaced San Juan County as the price leader for the first time in several years. The lowest median price was $107,500 in Columbia County, the center said.
Among the urban areas, the biggest decline was 9 percent in Snohomish County.
Low prices and low interest rates made homes more affordable for households with good credit and reliable jobs, the center said. The housing affordability index showed a slight improvement to 136.4, meaning the median income family had 36.4 percent more income than the minimum required to buy a median price home with a 20 percent down payment and a 30-year mortgage.
The housing affordability index for Benton County was 177.7 and for Franklin County was 148.5.
Read more: http://www.tri-cityherald.com/2010/08/12/1127853/tri-city-home-resales-prices-on.html#storylink=mirelated#ixzz18OpR3n7W
No comments:
Post a Comment