Developers plan for Kennewick's Southridge area

By Kristi Pihl, Tri-City Herald

Published Sunday, Feb. 19, 2012

Stan Nuxall Jr. stands Thursday near the site where he is developing Villas Verde, or “Green Homes.” He plans to build 61 villa-style townhomes with stucco exteriors and some native landscaping on the southeast corner of 27th Avenue and Ely Street in Kennewick. See story this page

KENNEWICK — Where shrubs and grass now grow, Stan Nuxall Jr. sees 61 villa-style townhomes, with stucco exteriors and some native landscaping.

Nuxall is developing Villas Verde, or "Green Homes," on the southeast corner of 27th Avenue and Ely Street in Kennewick with the goal of providing homes for retirees.

Plans for new homes similar to those at Villas Verde seem to be sprouting up in Kennewick.

The city has received three applications for new subdivisions in the first two weeks of the year. Last year, six projects were proposed, said Evelyn Lusignan, Kennewick's customer service manager.

With the new development and shopping options at Southridge, the area has grown into a good spot for new homes, Nuxall said.

South Kennewick is where available land is, said Rene Dahlgren, Home Builders Association of Tri-Cities director of government affairs.

Residential and commercial development goes in waves, she said. The area has a new sports complex, and Kennewick General Hospital plans to build a new hospital in the area.

New home permits were down in January compared with last year, but the national and state housing markets have been picking up, and Dahlgren said builders expect the Tri-Cities to exceed those markets.

Villas Verde will be built in groups of three and four, Nuxall said. Most are likely to be one-story.

Nuxall said he will participate in Energy Star and the Home Builders Association of Tri-Cities "Built Green" program.

The townhomes will be near Canyon Lakes Restorative & Rehabilitation Center. And Nuxall said he hopes to attract some couples where one spouse is living in the townhome and the other in assisted living.

He hopes to have the dues for the homeowners' association to be the lowest in the Tri-Cities. The dues will pay for maintenance.

The homes will be affordable, but the exact prices have not yet been set, he said.

Fireball Investments will own the land and develop it, and Green Plan Construction LLC will build the homes. Nuxall's company, SL Nuxall Real Estate Services, will market the properties.

Villas Verde will go before the city hearing examiner on April 9 for preliminary plat approval.

Nuxall said he hopes to have the roads and first homes go up shortly after city approval is received.

Nuxall will build some homes on speculation but he also said he hopes for presales, where homeowners can pick their own floor plan and lot.

Not too far from the future site of Villas Verde, a cherry orchard on the corner of 45th Avenue and South Ely Street will be replaced with 120 new single-family homes.

Owner Dale Ross has been finding it too difficult to operate the small orchard inside city limits, said Dave Retter, Windermere Real Estate/Tri-Cities owner and broker.

Cherry Creek Estates will be along the lines of Shadow Run on 36th Avenue and Ely Street and Pheasant Run on Vancouver Street and 27th Avenue, projects that Retter said Windermere Real Estate/Tri-Cities worked on with other developers.

J-U-B Engineers of Kennewick is also involved in the Cherry Creek Estates project.

South Kennewick is a great location, with the businesses and restaurants that have opened at Southridge, Retter said.

The 33 acres are the last large piece of dirt available in that area of Kennewick for development, he said.

Cherry Creek Estates will have homes that likely will be attractive to move-up and first-time home buyers, Retter said. They hope to have homes priced between $185,000 to $275,000.

The project is scheduled to go before the hearing examiner March 12.

The soonest Retter expects the project to break ground is in late June. The first homes won't be available until late this year or early next year.

The builders for the project have not yet been chosen, but there likely will be between three to five, Retter said. The subdivision might be completed in five phases.

Presales will be available sometime this summer, after city requirements are met and the prices are determined, he said.

Windermere Real Estate/Tri-Cities agents have been seeing homes go under contract for sales at a record pace this month in all price ranges, Retter said.

"I think there has been a pent-up demand," he said.

Cherry Creek Estates is one of six applications for new subdivisions in Kennewick that came in last year, Lusignan said. Cherry Creek Estates and the three subdivisions from this year are being reviewed by the city before they head to the hearing examiner.

After the city hearing examiner gives pre-plat approval, developers put in the required utilities and streets, she said. Then the subdivision heads to Kennewick City Council for final approval.

The other two new subdivisions proposed in Kennewick are:

* Southcliffe, 408 single-family homes on Sherman Road in the Thompson Hill area, by developers Milo Bauder and Grant Young.

* Grandridge Meadows South, 24 single-family homes proposed by Monogram Homes north of Clearwater Avenue near the future expansion of Steptoe Street.

Read more here: http://www.tri-cityherald.com/2012/02/19/1832376/developers-have-big-plans-for.html#storylink=mirelated#storylink=cpy

Steady growth expected in Kennewick

By John Trumbo, Tri-City Herald

Published Monday, Mar. 12, 2012

KENNEWICK -- Kennewick rode out the economy's difficult ride fairly well last year and this year should hold steady, finance and housing officials recently told the city council.

Banks will continue to be tight-fisted with their cheap money, while regulators increase scrutiny and credit unions enter the loan market, said Ben Rutledge with Gesa Credit Union.

Rutledge noted that a benefit of the recession was that it "weeded out bad commercial lenders," which gave the credit unions their opening to invest $90 million in the Tri-Cities in the past three years.

Most of the money was for real estate loans, with agricultural loans receiving the second largest share.

Rutlege said to expect minimal economic growth this year and flat interest rates through 2014, and tougher rules and regulations and a debt crisis that will affect Europe and the U.S.

In a word, Rutledge described the future as "uncertainty."

And Dave Retter, owner and broker of Windermere Real Estate in the Tri-Cities, agreed that Kennewick's housing market "isn't as rosy as 11 years ago."

But he said Kennewick has been a good market, with 42 percent of the people moving to the area choosing homes in Kennewick. Still, 73 percent of the houses sold in Kennewick in the past three years have been resales, he added.

The open spaces of the past that saw big residential developments such as Hansen Park almost are gone, so future development will have to look at the Southridge area and pockets of property for infill projects, he said.

"The challenge is how do we do infill and make it affordable?" Retter said. Reducing some requirements that gobble up land, such as curbs, gutters, sidewalks and mow strips, would help, he said.

"If there is no change, people are going to Pasco," Retter said.

"I don't think we're going to see any boom (this year). We'll just be consistent," he said.

Renee Dahlgren of the Home Builders Association of the Tri-Cities said Kennewick is "the sweet spot" of the Tri-Cities for being the most consistent with the kind of growth and home values desired and for having great stability in its market.

The number of single-family home permits has continued upward during the recession while the average single-family home value also increased, she said.

Kennewick's advantage in the Tri-Cities is its comparatively lower permit costs, and having a streamlined permitting process at city hall, Dahlgren said.

She also noted:

* Housing Predictor in September 2011 ranked Kennewick the second best housing market in the U.S.

* Farmers Insurance Group in December 2011 named the Tri-Cities the No. 1 most secure place to live in the U.S. among mid-sized communities.

* Milken Institute in December 2011 ranked Tri-Cities the 10th best-performing community in the country.

But being well positioned to handle growth and having the lowest interest rates in history with a 3 percent vacancy rate doesn't mean 2012 will be a growth year, she said.

National recovery and getting Hanford waste stabilized are unresolved big issues, Dahlgren said.

She also told Kennewick officials to expect a "flat" 2012 for housing.

Read more here: http://www.tri-cityherald.com/2012/03/12/1860998/steady-growth-expected-in-kennewick.html#storylink=mirelated#storylink=cpy

Bargain hunters boost home sales

By The Associated Press

Published Saturday, Feb. 11, 2012

SPOKANE -- Sales of existing homes in Washington rose in the final quarter to 2011, but prices continued to drop.

A report by the Runstad Center for Real Estate Studies at the University of Washington found the rise in sales reflects bargain hunting and the large number of distressed properties in lower-priced neighborhoods.

Sales of homes were 9.6 percent higher than in the fourth quarter of 2010, the report found.

But the median price was down 8 percent from 2010, to $219,700. That's the lowest fourth-quarter price since 2003, when the median was $205,700.

"The 2012 market will continue to challenge sellers trying to preserve their equity," said Glenn Crellin, associate director of the center.

The low interest rates would ordinarily have created a much stronger real estate market, Crellin said. Rates in the fourth quarter were the lowest ever recorded, he said.

Low prices and interest rates did mean that housing affordability indexes reached record highs for the eighth consecutive quarter, he said.

Home prices were up in the Tri-Cities last year. The average sale price last year was $200,291, up from $196,833.

In Washington's urban counties, the greatest quarterly gain in sales was 17 percent in Snohomish County, while the greatest decline, 9.7 percent, was in Cowlitz County.

The biggest year-to-year drop was 13.5 percent in King County; the smallest was 2.5 percent in Kitsap County.

In nine rural counties, median prices increased from the closing quarter of 2010.

"This indicates that the housing market is uneven, with some areas, or neighborhoods, seeing price stabilization, while others have many distressed and foreclosure properties," Crellin said.

In November, there were more than 76,000 Washington homes with mortgage payments at least 90 days past due. That's enough to feed the housing market for three quarters, Crellin said.

Read more here: http://www.tri-cityherald.com/2012/02/11/1824570/bargain-hunters-boost-home-sales.html#storylink=mirelated#storylink=cpy

The hunt for homes is on in the Tri-Cities

By Kristi Pihl, Tri-City Herald

Published Saturday, Mar. 24, 2012

Bob Brawdy/Tri-City Herald - Hillary Templin, a real estate broker with Coldwell Banker, points out features of a home under construction in Southridge Estates on Friday to Michelle Mainwaring, middle. Her mother, Sandy Mainwaring, left, and Michelle Mainwaring’s son, Caleb Hamilton, 14, also join the tour. The family stopped at an open house of a model home Templin was showing and she walked them to the nearby house so they could view the floor plan. Local real estate agents say they are noticing more people coming to open houses. See story below.

More Tri-City families are starting to get off the sidelines and hunt for new homes.

Area real estate agents said more buyers are checking out homes during open houses than they have seen in a long time.

The nationwide rebound of the housing market helps increase the confidence of Tri-Citians and makes them more comfortable about making a decision about the size of a new home, said Dave Retter, Windermere Real Estate/Tri-Cities owner and broker.

There is more optimism from buyers, real estate agents and builders, said Paul Roy, Tri-City Association of Realtors past president.

All the economic indicators seem to be showing that the nation is on an upswing from the recession.

There is some pent-up demand from buyers who took a wait-and-see stance, said Roy, managing broker with Coldwell Banker Tomlinson Associated Brokers of Kennewick.

Some Tri-Citians who have been living in apartments waiting for their homes in other areas to sell are selling those houses, Retter said.

Real estate agents also are seeing some of the types of buyers -- move-up buyers and upper-end buyers -- who have been missing from the Tri-City market in the past three years, he said.

The area needs a variety of people looking to buy new homes to be healthy, from first-time buyers to retirees looking to downsize, Retter said.

First-time home sellers are like the beginning of a domino effect, Roy said. Their decision to sell their home and buy a new home gives first-time home buyers more choices, and it lets the seller of their new home have the same chance to move up to a new home.

"Last year we were very optimistic. This year we are seeing the reality," Roy said.

There were 326 homes sold during January and February this year, compared with 330 sold in the same two months of last year.

The average price is up to about $203,400, compared to about $198,400 during the same months last year, Retter said. That's a combination of the value of homes going up, and some higher value homes being sold.

The median sale price is about $184,400, which means an equal number of homes have been sold for more than $184,400 and for less than that amount, he said. Last year, the median was $175,000 for January and February.

That is one of the highest medians seen recently, and is a good sign, he said.

There were 1,152 homes on the market in Kennewick, Richland, West Richland and Pasco earlier this week, Retter said. That compared with about 1,212 in October, and is a fairly good number for the cities.

Carol Bird, Tri-Cities Realty Group co-owner, said she is seeing more new homes where contractors have the land and then the buyer picks the home that will be built on the lot. It can take at least 90 days for the home to be finished.

In general, buyers are looking for new homes rather than older, existing homes, she said.

Bird said she thinks the local real estate market will stay fairly stable this year. Interest rates still are low, and that can make the difference on what home a family can afford.

While home sales remain similar, the number of building permits issued for new homes in the Tri-Cities is about 30 percent lower than those issued last year.

In January and February, 157 building permits were issued, compared to 222 during the same two months in 2011, according to the Home Builders Association of Tri-Cities.

Rene Dahlgren, the association's director of government affairs, said she is not sure exactly why fewer homes have received permits so far this year.

Pasco issued 46 permits for new single-family homes in January and February, compared to 82 during the same months last year. Dahlgren said she expects the city's consideration of school impact fees caused some builders to look elsewhere.

The next few months will be telling in how the year will shape up, she said.

"I really expect it to even out for the most part," Dahlgren said.

Roy expects home prices to increase as the economy improves. And he said he would encourage buyers to take advantage of the low interest rates now, since those rates will rise as the economy improves.

"Now is the time to get out there," Roy said.

Read more here: http://www.tri-cityherald.com/2012/03/24/1877504/the-hunt-for-homes-is-on-in-the.html#storylink=mirelated#storylink=cpy

Tri-City home market shows promise for 2012

By Kristi Pihl, Tri-City Herald

Published Tuesday, Jan. 17, 2012

It's early, but 2012 is looking like a great year for the Tri-Cities home market.

The economy appears solid, interest rates are at historic lows and the area has many signs of a healthy market, according to local real estate agents.

Dave Retter, Windermere Real Estate/Tri-Cities owner and broker, said he is hearing from his real estate agents that buyers and sellers "are feeling pretty good about the Tri-Cities."

The housing market picked up in the fall after what some called a dismal summer.

There was exactly the same number of sales in December as there was in December 2010, Retter said. But the average sale price was nearly $207,000 for the 242 homes sold in December compared to about $205,000 in December 2010.

"We've had a good finish to the fall," he said.

And foreclosures were the lowest they have been in eight years, with 355 foreclosures in 2011 compared to 755 in 2010, according to a report by Benton-Franklin Title Company.

Last year, total sales were down from 2009 and 2010, but Tri-City real estate agents say those years were an anomaly because the federal tax credit for first-time homebuyers artificially inflated the number of sales.

A total of 2,856 homes were sold in the Tri-City area, including Benton City, Burbank and Finley, Retter said. That compares to 3,267 sales in 2010.

Last year, the average sale price increased from $196,833 in 2010 to $200,291, he said.

A 3 percent to 5 percent appreciation in home prices from year to year lends itself to a healthy market, Retter said.

As of Monday, there were 1,111 homes listed on the market, which Retter said is normal for this time of year.

The Tri-Cities didn't see an increase in home listings after Hanford layoffs were announced, he said.

"I'm very optimistic about what I am seeing in the marketplace and peoples' attitudes," Retter said.

Paul Roy, president of the Tri-City Association of Realtors, said he is excited about 2012 and happy with what he is seeing in the market.

The major difference is consumer confidence, Roy said.

During the summer, people heard about the national debt crisis and worried about the effect of upcoming Hanford layoffs. Confidence was low.

Now, Roy said, confidence is up.

"The better people feel about their lives and their jobs, the more likely they are to make a move," he said.

Some of the decrease in sales can be attributed to families buying homes to take advantage of the first-time homebuyer tax credit, Roy said.

The number of home sales alone doesn't indicate the strength of the local market, Roy said.

Prices increased slightly, and the area had fewer foreclosures than 2010. Last year, the rate of foreclosures was less than half of the 832 foreclosures in 2008, which was the most in eight years, the report said.

Meanwhile, homebuilders have described the number of new homes being built in the Tri-Cities as sustainable.

More building permits were issued for new single-family homes in 2011 than in either 2008 or 2009, according to the Home Builders Association of Tri-Cities.

A total of 1,332 permits were issued last year compared to 1,513 in 2010, according to the report.

But the number of permits in 2011 was higher than in 2008 or 2009.

People who bought homes now will discover they have made a wise decision, Retter said, because as the economy improves, interest rates will escalate.

Roy said he is seeing a growing number of investors buying up homes and turning them into rentals.

Many families can afford to buy a home for about the same cost as renting one, Roy said, adding that Tri-City rental prices have increased with the demand for apartments.

"We've just kind of settled back to where we were before the boom and bust started," he said. "We are calling it the new norm."

-- Kristi Pihl: 582-1512; kpihl@tricityherald.com

Read more here: http://www.tri-cityherald.com/2012/01/17/1789782/tri-city-home-market-shows-promise.html#storylink=mirelated#storylink=cpy

Experts positive about Tri-Cities' economic future

By Kristi Pihl, Tri-City Herald

Published Thursday, Jan. 19, 2012

Though growth has slowed, the Tri-Cities should continue to see job gains as it has for the past 20 years.

Labor industry experts spoke optimistically Wednesday about the outlook for the Tri-City economy.

The Tri-Cities may see jobs increase by 2.4 percent a year through 2014, with job growth slowing to 1.6 percent through 2019, state regional labor economist Ajsa Suljic told more than 200 people at the Tri-Cities Regional Economic Outlook.

Health care and social assistance, manufacturing and educational services are expected to lead the anticipated job growth, she said at the annual event sponsored by the Tri-City Development Council.

Health care spending should continue to increase and health care will remain a major economic driver for the Tri-City area, said Rand Wortman, CEO of Kadlec Health Systems.

But employers will continue to struggle with the cost of health insurance and consumers are likely to pay more for insurance that offers less coverage, he said.

Tri-City hospitals already have seen the amount of charity care they provide increase dramatically, Wortman said.

Richland's Kadlec Regional Medical Center provided $1.5 million in care to people who were not billed because they could not afford to pay for it in 2000. That increased to $26 million last year. The actual cost to the hospital was about half that.

Hanford, Pacific Northwest National Laboratory, agriculture, wine and health care have helped insulate the local economy, Wortman said.

Wine and agriculture bring money into the area, he said.

"These are good times for agriculture," said Don Sleight, president of AgReserves, the parent company of AgriNorthwest.

The cost of agricultural land has increased, and worldwide food prices are stabilizing because the supply of food is not as tight, Sleight said.

In real estate, the Tri-Cities saw a dip in the number of homes sold in 2011 because of the "fear factor," said Paul Roy, president of the Tri-City Association of Realtors and managing broker for Coldwell Banker Tomlinson Associated Brokers.

Pending Hanford layoffs and national economic news caused consumer confidence to waver, he said.

But home sales picked up in the fall, and the market remained stable. The average price of homes slightly increased, the inventory of homes was steady and there were fewer foreclosures, Roy told the Herald.

Roy said real estate agents are hopeful about this year because a growing population should increase the demand for places for people to live.

Another good sign is that retail sales growth continues to outpace the rest of the state.

Barbara Johnson, general manager of Columbia Center mall, said the cities saw the amount of retail sales taxes climb by about 6 to 12 percent, while Benton and Franklin counties were up by about 19 percent.

Statewide, retail sales tax receipts increased by 2.5 percent, Johnson said.

"We are a retail mecca in our own right," she said.

Johnson said she expects some larger chains will continue to file for bankruptcy or close low-performing stores. But like last year, she expects to see new stores open in the Tri-Cities.

Johnson predicted a 4 percent sales gain locally and another strong holiday shopping season.

"People really came out in droves this year," she said.

Shoppers shouldn't be surprised to see more stores offering the "pre-Black Friday" sales starting Thanksgiving evening, Johnson predicted.

Kathy Moore, general manager of the Courtyard by Marriott in Richland, said she expects tourism related to sports events, conventions and leisure to also remain strong this year. But the local hospitality industry is a little unsure what will happen with business travel with the end of federal stimulus dollars at Hanford.

Tourists spend about $350 million each year in the Tri-Cities, including about $48 million in retail and $118 million at restaurants, Moore said.

The Tri-Cities is seen as a desirable market for new hotels, and about four national chains are looking to open hotels here, she said.

"New hotels will definitely come into the market as soon as funding is available," Moore said.

Read more here: http://www.tri-cityherald.com/2012/01/19/1792540/experts-positive-about-tri-cities.html#storylink=mirelated#storylink=cpy

Tri-City jobless rate falls behind U.S. pace

By Kristi Pihl, Tri-City Herald

Published Wednesday, Mar. 28, 2012

Mike Sutherland, left, owner and brewmaster of White Bluffs Brewing in Richland and marketing director Chris Collier sample a double India pale ale Tuesday in their brewing room. Demand prompted the 1-1/2 year old business to expand its production, according to the state, manufacturing is one area showing job growth in Tri-Cities. However, the area still had about 2,000 fewer nonfarm jobs in February than it did a year ago. See story below.

Demand for craft beer has prompted Richland's White Bluffs Brewing to add tanks for the 28 recipes brewmaster Mike Sutherland has created.

If all goes well, the first batch of beer from the new tanks should be finished fermenting today.

Sutherland's 1 1/2-year-old business is one Tri-City company contributing to a growth in manufacturing.

Despite an increasing number of Tri-Citians finding jobs in everything from manufacturing to financial activities in the last year, the area still had about 2,000 fewer nonfarm jobs in February than it did a year ago, according to data released Tuesday by the state Employment Security Department.

Nonfarm employment stayed steady at about 98,300 jobs in February compared to January.

The Tri-Cities now is behind the national employment trend, said Mark Berreth, regional labor economist.

Part of that stems from the Hanford layoffs from last year, he said. The area is down by 1,200 jobs in professional and business services, which includes some Hanford jobs, compared to last year.

Most other industries saw jobs stay steady or increase compared to February of last year.

The Tri-Cities had an unemployment rate of about 10.1 percent, the first double digit unemployment since January 1996, after a round of Hanford layoffs. The January 2012 unemployment rate was revised to 9.8 percent, although the original estimate was 10 percent.

The state has been seeing an increase in job opportunities and has an employment rate of 8.2 percent, Berreth said.

Benton County had an unemployment rate of 9.6 percent in February, while Franklin County's rate was at 11.5 percent.

That means 13,460 Tri-Citians were out of work and actively seeking new jobs. That's 1,920 more than a year ago.

The number of people filing unemployment claims is up to 921 in February, compared to 690 for the same month last year, Berreth said.

Overall, the Tri-Cities had 119,510 people employed in all industries in February, 1,390 less than a year ago. That includes self-employed and agricultural workers.

Some of the drop in employment likely is from self-employed workers, Berreth said. When people lost jobs in the initial recession, some of them decided to start their own business.

Manufacturing is one of the areas where the Tri-Cities has seen job growth, with 300 more workers in February than the same month last year.

At White Bluffs Brewing, marketing manager Chris Collier said they have not added employees, but they plan to expand as the demand for their pale ales and French farmhouse-style beers increases. It would be the second expansion at their production facility and taproom at the Horn Rapids Business Center.

In the Tri-Cities, construction saw a growth of about 200 jobs compared to the same time last year.

T.R. Masterson Construction of Kennewick is getting ready to build about 10 homes in the Bellerive Springs subdivision in Richland. Owner Thomas Masterson said the end of the year was slow, but home building has picked up for his company in the past few weeks.

He expects to add to his field crew of five, but Masterson said he likely will re-hire some of those he let go during the slower months. His company plans to build homes just under the $150,000 price range because they seem to be selling well in the Tri-Cities, he said.

Meanwhile, hospitality is up by about 100 jobs from last year, even though the industry is seeing a decline from the last two years when Hanford stimulus dollars increased business travel, said Kris Watkins, president and CEO of the Tri-Cities Visitor & Convention Bureau.

Hotel occupancy was off 11 percent in January and February compared with the same months in 2011, she said. While the Tri-Cities has become more diversified in tourism with sports, conventions and leisure travel, Hanford business still plays a large role, she said.

Financial services increased by 100 jobs from a year ago. Berreth said that is promising because banks and financial advisors were among the first areas hit by the recession.

WorkSource Columbia Basin continues to see a steady stream of job seekers, said area director Michelle Mann.

WorkSource Columbia Basin's job fair March 15 resulted in a number of follow-up interviews, which is a good sign, Mann said. But it's too early to determine how many of the 400 attendees found employment.

The annual agricultural job fair runs from 10 a.m. to 2 p.m. May 19 at WorkSource Columbia Basin's Kennewick office. Mann said they moved the job fair to a Saturday because last year, job seekers lined up out the front door and to the street.

Employers then will start recruiting for cherry harvest, food processing and corn, she said.

Benton, Franklin and Walla Walla counties saw a growth of 9.7 percent in farm employment in February compared to the same month in 2011. There were about 11,260 farm workers this February, compared to 10,260 last February, according to the state's monthly agricultural employment and wage report.

Asparagus harvest won't start until April. Jim Middleton, owner of Midd Farms north of Pasco, said he hasn't seen spears on his 130 acres.

Harvest depends on the weather, Middleton said. It is labor intensive because every spear is harvested by hand.

Middleton expects he will hire about 50 workers for the 10-week harvest. Most will be those he hired last year. "It's a marathon," he said.

February unemployment rates for area counties are: Adams County, 11.5 percent; Columbia County, 12.3 percent; Grant County, 12.3 percent; Yakima County, 11.9 percent and Walla Walla County, 8.4 percent.

-- Kristi Pihl: 582-1512; kpihl@tricityherald.com

Read more here: http://www.tri-cityherald.com/2012/03/28/1882329/tri-city-jobless-rate-falls-behind.html#storylink=mirelated#storylink=cpy

New apartment complex now open in Richland

By Tri-City Herald staff

Published Friday, Mar. 30, 2012

The Regency Park Apartments at Queensgate are open and having a grand opening from 10 a.m. to 6 p.m. Saturday and Sunday.

The apartments are owned by Sam Gottlieb of Savannah, Ga.

The three-story apartment buildings are scattered around a one-story clubhouse that has a pool, two gas-burning fireplaces and an exercise room. Each of the 228 units will have a microwave and washer and dryer.

The units range from 550 square feet to 1,100 square feet.

For more information, go to RPQueensgate.com . Or call, 628-8990.

Read more here: http://www.tri-cityherald.com/2012/03/30/1885412/new-apartment-complex-now-open.html#storylink=cpy

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Home Sales on the Rise: Ready for Spring Buying Season?

DAILY REAL ESTATE NEWS | THURSDAY, FEBRUARY 23, 2012

Existing-home sales rose 4.3 percent in January to a seasonally adjusted annual rate of 4.57 million, marking the third gain for home sales in the last four months, the National Association of REALTORS® reports.  

“The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents,” NAR’s Chief Economist Lawrence Yun says.

While sales ticked up, inventories of for-sale homes also continued to show improvement, NAR reported. At the end of January, total housing inventory fell 0.4 percent to 2.31 million existing homes for sale, which represents a 6.1-month supply at the current sales pace. 

“The broad inventory condition can be described as moving into a rough balance, not favoring buyers or sellers,” Yun says. “Foreclosure sales are moving swiftly with ready home buyers and investors competing in nearly all markets. A government proposal to turn bank-owned properties into rentals on a large scale does not appear to be needed at this time.”

Unsold listed inventory has steadily dropped since reaching a peak of 4.04 million in July 2007. It now is 20.6 percent below where it was a year ago, NAR reports. 

Housing Affordability Improves

As home prices have fallen and mortgage rates at all-time record lows, housing affordability is at some of its highest levels on record. 

“Word has been spreading about the record high housing affordability conditions and our members are reporting an increase in foot traffic compared with a year ago,” says NAR President Moe Veissi. “With other favorable market factors, these are hopeful indicators leading into the spring home-buying season. We’re cautiously optimistic that an uptrend will continue this year.”

The national median existing-home price for all housing types in January was $154,700, which is down 2 percent year-over-year. 

Distressed sales, which tend to sell at steep discounts, continue to hamper home prices nationwide. Foreclosures and short sales accounted for 35 percent of all January home sales, which is up slightly from 32 percent in December. 

Still, “home buyers over the past three years have had some of the lowest default rates in history,” Yun said.  “Entering the market at a low point and buying at discounted prices have greatly helped in that success.”

Breakdown by Housing Type

Here’s a closer look at how home sales fared by housing type in January: 

Single-family home sales: increased 3.8 percent to a seasonally adjusted annual rate of 4.05 million in January from 3.90 million in December. They are 2.3 percent above the 3.96 million-unit pace a year ago. Median price: $154,400 in January, down 2.6 percent from January 2011.

Existing condominium and co-op sales: rose 8.3 percent to a seasonally adjusted annual rate of 520,000 in January from 480,000 in December. They are 10.3 percent lower than the 580,000-unit level in January 2011. Median price: $156,600 in January, up 2 percent from a year ago.

Home Sales by Region

The following is a breakdown of existing-home sales in January by region: 

• Northeast: increased3.4 percent to an annual pace of 600,000 in January and are 7.1 percent above a year ago. Median price: $225,700, which is 4.2 percent below January 2011.
• Midwest: increased 1 percent in December to a level of 980,000 and are 3.2 percent higher than January 2011. Median price: $122,000, down 3.9 percent from a year ago.
• South: rose 3.5 percent to an annual level of 1.76 million in January but are unchanged from a year ago. Median price: $134,800, which is 0.3 percent below January 2011.
• West: increased 8.8 percent to an annual pace of 1.23 million in January but are 3.1 percent below a spike in January 2011. Median price: $187,100, down 1.8 percent from a year ago.

Contract Delays, Cancellations Remain High

Twenty-one percent of NAR members in January reported delays in contracts, and 33 percent said contracts fell through, according to NAR. The number of contract cancellations remains mostly unchanged from December. 

The increase in the past year of contract cancellations or delays has been blamed on more lenders declining mortgage applications from stricter underwriting standards and low appraisals coming in under the agreed upon contract price. 

Source: National Association of REALTORS®

Warren Buffett Says He’d Buy a Couple Hundred Thousand Homes

Mortgage rates hover near 60-year lows

By Kerri Panchuk • March 1, 2012 • 9:11am • On housingwire.com


Fixed mortgage rates fell slightly for the week ending March 1, keeping interest rates near their 60-year lows, Freddie Mac said Thursday.


Freddie's Private Mortgage Market Survey shows the 30-year, fixed-rate mortgage averaging 3.90% for the week, which is down from 3.95% the previous week and 4.87% a year ago.


In addition, the 15-year FRM hit 3.17%, down from 3.19% a week earlier and 4.15% a year ago.


Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.83% this week, up from 2.80% the week before and 3.72% a year ago.


The one-year Treasury-indexed ARM hit 2.72%, down from 2.73% a week earlier and 3.23% last year.


"Fixed mortgage rates bottomed out in January and February of this year which is helping spur the housing market," Frank Nothaft, vice president and chief economist with Freddie Mac.


He added, "For instance, pending existing home sales rose in January to its strongest pace since April 2010 and sales figures for December saw upward revisions. In addition, the Federal Reserve noted in its February 29th regional economic review (or Beige Book) that residential real estate activity increased modestly in most of its Districts over the course of January and early February, with several reports of increased home sales."


kpanchuk@housingwire.com