6 tips for timing a real estate purchase

How fence-sitters can get a jump on the competition

By Dian Hymer / Inman News®

In mid-June, interest rates on home loans were lower than they were a year ago. However, this failed to ignite the housing market. Many buyers and homeowners would like to make a move, but some find it impossible to make a decision. They are commonly referred to as fence-sitters, poised to make a move when the time seems right.December 28, 2011

The housing market is unlikely to turn around soon, but this doesn't mean that now is not a good time to buy or sell. It depends on your personal situation and market conditions in the area where you plan to buy or sell.

Become an expert on your local market. Knowing a good deal when you see it or what price to ask if you decide to sell depends on having a good understanding of how much properties are selling for in your neighborhood.

While you're trying to decide what to do, line up a team that can help you accomplish your goal when you decide to move ahead. You can do this by researching online, attending open houses in the area and asking a real estate agent to keep you on top of market fluctuations.

Your decision to buy should be based on your personal financial situation, not on the national or global economy. For example, if you bought during the bubble market and are now getting divorced, you'll probably sell for less than you paid.

But, if the house is too expensive for one to support, it may be cheaper in the long run to cut your losses and sell now. No one knows how long the housing downturn will last. Prices could move lower before rebounding. This is not an ordinary recession.

HOUSE-HUNTING TIP: Don't get caught up following the herd. Just because most people in your area aren't buying or are having difficulty selling doesn't mean that you shouldn't make a move. Just make sure if you're a buyer that you have job security, a relatively healthy economy in your local area and a plan to stay put for at least 10 years.

The housing market will be volatile going forward. Good economic news will help fence-sitters make the decision to get serious about moving. Bad news of any sort can cause the market to stall. To take advantage of the upticks in the market, you need to be prepared in advance.

Find a good local real estate agent to work with who understands your needs, and wait to buy or sell until the time is right for you. It could take you a year or so to make the final decision. Some agents don't have the patience to stick it out.

Select an agent who will educate you about the market and the idiosyncrasies of the home-sale business in your area. Ask to be kept informed about sales in the area. Many agents are set up to do this electronically, which is an easy way to keep you informed without taking up a lot of the agent's time.

One of the most difficult aspects of the current home-sale business is financing the transaction. Find a loan agent or mortgage broker who is a real professional, has been in the business for years and who understands what current underwriters will require from you to process your loan.

Assemble all the financial documents you'll need for loan approval even before you start looking. Ask your agent or broker to have your loan package previewed by an underwriter so that you know beforehand if there are any problems.

THE CLOSING: Remedy these in advance so that they don't cause last-minute delays in closing.

Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."

Tri-Cities comes in second for housing market recovery

By Kristi Pihl, Herald staff writer

Tri-City home prices are expected to grow by 3.4 percent this year, ranking the area second in the nation for best recovery in the housing market.

The recent rating by the Housing Predictor, an independent real estate market forecaster, is more evidence of how well the Tri-City economy is doing, said Rene Dahlgren, Home Builders Association of Tri-Cities director of government affairs.

Housing Predictor said the only housing market expected to see more growth in home prices is El Paso, Texas, which is expected to see a 3.7 price increase.

It's hardly the first time the Tri-Cities has made lists of best housing markets, Dahlgren said.

In February, the Tri-Cities was named the fifth best housing market, according to Builder Magazine. In 2010, the Tri-Cities was fifth on the list of best performing large cities based on job and salary growth as rated by the Milken Institute, and ranked first out of 372 areas for employment growth in the last five years by Garner Economics.

And despite looming layoffs at Hanford, Dahlgren said they hope the market will remain strong and that the economic slump will be less than in the past.

"We've definitely come a long ways in diversifying our economy," she said.

Having a strong housing market is a good indicator of whether the economy is going well because that means people are willing and able to invest in real estate, Dahlgren said.

In 2011, 890 single-family homes received building permits as of July, according to the Home Builders Association of Tri-Cities. Pasco had the most new home permits, at 321, while Kennewick had 192 and Richland 175. West Richland issued permits for 80 new homes.

Read more: http://www.tri-cityherald.com/2011/09/10/1637924/tri-cities-comes-in-second-for.html#storylink=mirelated#ixzz1cz9A69qE

Tri-City housing market rated at No. 17 by magazine

By Kristi Pihl, Tri-City Herald

The Tri-Cities is expected to have one of the top 20 healthiest housing markets in the nation next year.

The Tri-Cities, at No. 17, was the only metropolitan area in the Northwest to make the list created by Builder Magazine and Hanley Wood Market Intelligence.

The healthiest of the 100 largest markets nationwide were determined using home prices, employment, population projections, unemployment rates and median household incomes, said Jonathan Smoke, executive director of research for the real estate research firm.

The Tri-Cities does well in all categories, and each is expected to improve in 2012, he said. For example, the area's home prices are expected to grow by about 3.8 percent next year.

The Tri-Cities might be one of the smaller markets to make the top 20 list, but the area's economy has been relatively strong during the national housing downturn and recession, Smoke said.

Already, construction permits in the Tri-Cities have been rebounding for more than a year.

The area also has an above-average number of high paying jobs, combined with relatively affordable housing, Smoke said.

And the Tri-City home ownership rate is higher than the national average, he said. It increased to 69.5 percent in July, while nationally the rate is 66 percent and has been declining each year.

The Tri-Cities is the most affordable metropolitan area in the state, said Paul Roy, president of the Tri-City Association of Realtors.

Housing affordability means it has made more sense for families moving to the Tri-Cities in the past decade to buy homes rather than to rent, he said.

An increasing home ownership rate combined with a growing number of households creates a demand for homes, Storm said.

Roy said August and September were disappointing in terms of home sales in the Tri-Cities. Consumer confidence is low, but he expects that confidence to improve.

Through September this year, 2,145 homes were sold in the Tri-Cities, according to a report by Coldwell Banker Tomlinson Associated Brokers of Kennewick.

An average of almost eight homes were sold each day so far in 2011, compared with about nine homes sold a day on average in 2009 and 2010, according to the report.

Roy said October sales should end up better than the same month last year.

There is about eight months of inventory for sale because of fewer sales and more listings, he said. But he expects that anomaly will correct itself after winter.

Inventory is based on the sales pace in the past, he said. And if things pick up to 2008, 2009 or 2010 levels, the housing inventory will be just right.

The Tri-Cities is estimated to have 1,244 new homes issued building permits this year and 1,099 in 2012, according to Builder Magazine's report.

Rene Dahlgren, director of government affairs for the Home Builders Association of Tri-Cities, said builders expect to see a similar number of permits for new single-family homes next year as this year.

As of September, 1,089 permits for new single-family homes were issued in the Tri-Cities, and about 1,300 total are expected by the end of the year, according to the association.

Dahlgren said that is sustainable and keeps builders relatively busy. But they would like to see some growth.

Unlike the rest of the state, the Tri-City home market has maintained its stability, she said.

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

Read more: http://www.tri-cityherald.com/2011/10/28/1696277/tri-city-housing-market-rated.html#storylink=mirelated#ixzz1cz7vRtUZ

Growth in Tri-Cities Not Without Challenges

By John Collett                           Story Published: Jul 1, 2011 at 6:11 PM PDT


TRI-CITIES -- The Tri-Cities community has grown significantly in the past decade and experts say that will continue strong for another ten years. In fact, a new report KEPR first told you about last week has our community getting bigger by about 35 percent in less than ten years.

Thought of more growth are astounding to Tri-Cities local Barb Maheu, who has already seen major changes in her day.

“They have all that new housing in west Pasco and really it expanded, Kennewick is more crowded cause they didn't have that mall at all,” said Maheu. “I mean when I was born here like 60 years ago, they didn't have any of that.”

The 35 percent prediction is going to need some help according to TRIDEC President Carl Adrian.

“This dream will only come true if there are jobs in the community and there's a reason for people to come in,” said Adrian.

Even if the jobs come, the idea of all that growth may be a double-edged sword, that could affect the quality of life that people here enjoy. One of the major areas of concern is how the schools would handle growth since they’re already filled to the max.

“It's harder for them to finance new buildings and that sort of thing,” added Adrian. “So that kind of growth would be a concern.”

Real estate agent Paul Roy is well aware of the growth and what can happen when it’s not handled correctly.

“Not all growth is good growth, and most people you talk to are pro smart growth,” said Roy. “What we look at that is having the infrastructure in place, having the services to service that growth and not just grow for the sake of growing.”

A bonus would likely come to homes though as they expect an increase in housing prices for homeowners, and bring an overall boom to the market.

“Right now there's some issues there,” said Roy. “Especially in what we call affordable housing under 200 it's very tight, very slow.”

TRIDEC explained they don't expect growth to be an issue on healthcare since Kadlec and KGH both plan to expand. Traffic may be an issue, but it's all relative.

For Maheu though, some things will never change.

“It still feels like it’s kind of an ideal town,” said Maheu.

TRIDEC also tells Action News the 35 percent estimate seems a bit high, and guesses it will be more like 20 percent. That would still mean an additional 50,000 people in our community over the next ten years.

Best, Worst Real Estate Markets

Daily Real Estate News  |  January 19, 2011

More than 15 states are projected to experience housing inflation or appreciation during the year, according to Housing Predictor, which releases an annual report of its choices for best and worst housing markets.

The top five housing markets are:
1. Portland, Maine
2. Kansas City, Kan.
3. Tri-Cities, Wash.
4. Omaha, Neb.
5. Fargo, N.D.

However, not all markets will fare well in 2011, with the foreclosure crisis particularly still battering some areas as well as high unemployment and overbuilding during the boom era that has led to high home inventories.

The top 5 worst markets, according to Housing Predictor, are:
1. Bend, Ore.
2. Las Vegas
3. Atlantic City, N.J.
4. Miami, Fla.
5. Medford, Ore.

View all 25 worst markets that made the list in the Housing Predictor report.: "Best and Worst Real Estate Markets Announced in 2011", PR.com (Jan. 17, 2011)

6 Most Promising Real Estate Markets for 2011

Daily Real Estate News  |  March 14, 2011

Inman News recently released a list of 10 real estate markets to watch in 2011 based on housing, economic, and demographic data. Inman News took into account such factors as the area's median sales price, unemployment rate, sales volume, and foreclosure activity.

1. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.: The metro area was one of the few markets to see year-over-year gains in its home prices.

Median sales price (Q4 2010): $331,100
Median sales price % change (Q4 2009-Q4 2010: 8.1 percent
Foreclosure activity rate (2010): 1 in 49 units

2. Buffalo-Niagara Falls, N.Y.:  This metro area for the last year has boasted a low delinquency rate and one of the lowest foreclosure rates in the country. It also has one of the fastest-rising median list prices in the nation.

Median sales price (Q4 2010): $126,500
Median sales price % change (Q4 ’09-Q4 ’10): 14.3 percent
Foreclosure activity rate (2010): 1 in 322 units

3. Des Moines, Iowa:  The city has a low unemployment rate and one of the highest projected job growth rates for the third quarter of 2011.

Median sales price (Q4 2010): $151,300
Median sales price % change (Q4 ’09-Q4 ’10): 5.5 percent
Foreclosure activity rate (2010): 1 in 79 units

4. Portland-South Portland-Biddeford, Maine: The Maine community has plenty of reasons for making the list, including a low unemployment with projected job growth, a rising median sales price, and high affordability.

Median sales price (Q4 2010): $223,000
Median sales price % change (Q4 ’09-Q4 ’10): 8.3 percent
Foreclosure activity rate (2010): 1 in 150 units

5. Kennewick-Richland-Pasco, Wash.: Rising household income and a rise in the median price helped this Washington metro make Inman’s list.

Median sales price (Q4 2010): $183,000
Median sales price % change (Q4 ’09-Q4 ’10): 8.9 percent
Foreclosure activity rate (2010): 1 in 161 units

6. Fargo, N.D.-Minn.: This North Dakota community is becoming more desirable with its low unemployment (about 4 percent), which is lower than nearly any other state in the nation (the national average is about 9 percent).

Median sales price (Q4 2010): $148,500
>Median sales price % change (Q4 ’09-Q4 ’10): 6.2 percent
Foreclosure activity rate (2010): 1 in 7,423 units

Source: “10 Real Estate Markets to Watch in 2011,” Inman News (March 11, 2011)

Kennewick: A housing market to watch in 2011 (Inman)

Three structures at 300 Area of the U.S. Department of Energy's Handford Site are demolished with explosives on Oct. 9, 2010. Handford demolition and cleanup work is helping drive the Kennewick area economy. (Handford/U.S. Department of Energy)

The Kennewick area is one of “10 real estate markets to watch in 2011,” according to Inman News.

“(H)ousing appreciation in the Kennewick area remained modest while the rest of the country was experiencing a boom,” the real estate news service wrote Friday.

The metro area has fairly low unemployment compared to the national rate and was one of three markets on the list to see household income rise between 2008 and 2009. Population and in-migration from other states also rose during that time, each up 4.2 percent. Median sales price in the Kennewick market rose 8.9 percent from fourth-quarter 2009 to fourth-quarter 2010.

And there’s economic strength in Kennewick, Don Havre, broker at The Real Estate Firm there, told Inman.

We are a transportation hub with rail, barge traffic and (a) freeway network. Our economy includes agriculture, with its growing grape/wine market, high-tech companies like Infinia, which manufactures generators powered by the sun’s energy, Pacific Northwest Laboratory, and the Hanford Project.

Speaking of federal projects, the No. 1 market to watch was Washington, D.C. No other Northwest areas made the list.

Aubrey Cohen

Aubrey Cohen is the aerospace and real estate reporter for seattlepi.com. 

American Cowboy Magazine Picks Kennewick

Kennewick, Washington, has been chosen as one of the "Top 20 Places to Live the West" by American Cowboy Magazine and will be featured in the April/May issue.

The article will encapsulate the unique appeal of Kennewick, Washington, and the Tri-Cities with relevant information for both visitors and potential residents.

The 20 cities chosen will represent a nice mix of historically significant Western towns, small ranching communities, beautiful scenery and outdoor access, and a few counter-intuitive surprises.

The magazine's circulation is close to 100,000 and the feature article will hit newsstands by mid-March.

SkyWest Magazine Features the Tri-Cities

The Tri-Cities is once again receiving accolades as a premier travel destination after SkyWest Magazine featured the article "Trifecta Perfecta in Washington's Tri-Cities" in their January/ February issue.

The Tri-Cities appears on the front cover which is supported by a multiple page feature article. The article highlights the Tri-Cities' great climate, wineries, history and outdoor recreation.

SkyWest Airlines serves destinations all over the country and flies directly into the Tri-Cities from Denver, CO and San Francisco, CA under the United Airlines brand.

The current issue of SkyWest Magazine will be available on all SkyWest flights through February, reaching 2.5 million passengers.

Click here to view the SkyWest's feature on the Tri-Cities.

New Apartment Complex Fall Opening in Richland, Washington

By Lena Vargas
Story Published: Jan 31, 2011 at 5:43 PM PST

RICHLAND -- KEPR has new information tonight on some apartments opening in our area soon. Action News found out, half of the units should be ready by September near the Richland Target off of Queensgate.
Multimedia

Watch The Video: KEPRTV

We got our first look at the plans for the 228 units on Monday. Sizes range from studios to two-bedrooms.

Rob Martin works for the builder, Regency Park Apartments. He says a lot of thought went into who might be moving in.

"We spent a substantial amount of time looking into what's actually needed in the area and also what people prefer as far as square footage goes and amenities like laundry facilities," said Martin.

Based on their research, the builder expects most of the renters will be adults without children.

Close to 240 Acres Ready for New Housing in Kennewick, Washington

Close to 240 Acres Ready for New Housing Tools

By John Collett
Story Published: Jan 21, 2011 at 5:12 PM PST


KENNEWICK – The City of Kennewick is freeing up land for new homes. On Tuesday, the city council approved for close to 240 acres of land to be rezoned from agriculture to residential.

Watch The Video: KEPRTV

The city says one acre builds close to three to four homes. With those figures, the new land could hold close to 800 homes.

KEPR spoke to real estate agents, who said cities are making moves like these to try and attract builders.

“I represent four different builders, and we're looking for other opportunities, where's the next place to go, and there's not a lot of places,” said Realtor Laura Harris. “But Southridge is definitely one of them.”

No one has bid on the land yet, but the city expects interest to rise in the spring.

Richland, Washington, named among the "Best Places to Launch a Second Career "

U.S. News and World Report: Best Places to Launch a Second Career

College towns and centers of healthcare or state government tend to make great bets.

By Emily Brandon , Kerry Hannon

Posted: September 16, 2010

Many seniors are going to be employed past age 65, both for the money and because they enjoy working. But jobs aren't exactly easy to come by right now. The unemployment rate for those 55 and older was 6.9 percent in July, more than double what it was in December 2007.

That rate varies considerably by location, however. Baby boomers in towns with relatively vibrant economies will obviously have a much easier time finding work than those in cities where the going has been tough. To zero in on especially good places to launch a second career after stepping out of the first one, U.S. News applied its "Best Places to Retire" search tool powered by data from real estate information provider Onboard Informatics and looked for locales with below-average unemployment and a solid record of job creation over the past decade. We focused on spots with industries known for hiring older workers and considered the cost of living and such amenities as access to medical facilities and recreational opportunities.

You may be able to improve your odds of landing a new job, for example, if you're willing to relocate to a university town such as State College, Pa., or Ames, Iowa. Thanks to their solid economic base, college towns are known to weather recessions better than most places. Many also have plentiful affordable housing. And as a bonus, universities typically provide people in the surrounding community access to mind-expanding speakers, performances, and a rich range of sporting events.

Alternatively, cities with a large number of government jobs (such as Lincoln, Neb.) or positions in the healthcare industry (Lubbock, Texas) have generally been able to avoid the worst of the economic decline....


Richland, Washington
Population: 44,344
Median home price: $180,000

The Richland region, which includes the nearby cities of Kennewick and Pasco, added 3,300 jobs to the local economy over the past year—more than any other metro area in the country.

One big reason: It's home to Washington State University-Tri-Cities and the Energy Department's Pacific Northwest National Laboratory. The city was developed by employees of Hanford Engineer Works, a company that helped produce the atomic bomb. Today, a number of companies and government agencies employing more than 11,000 people are working on a massive cleanup project at the Hanford site, where reactors were deployed for decades to produce plutonium. For example, Bechtel and the DOE are developing a cutting-edge waste treatment plant to convert hazardous waste to glass.

Richland sits on the Columbia River within easy reach of the Yakima and Snake rivers, which means boating and plenty of outdoor attractions. Homes are affordable, and the cost of living is below the national average.

To read the whole article and the other cities listed go to: Best Places to Launch a Second Career - US News and World Report

Home Staging Tips That Focus on Largest Customer Segments

RISMEDIA, December 18, 2010—Selling a home in any market can be competitive. It’s essential that your sellers follow some simple, yet important tips to help make their home more salable.

A quicker home sale can be reached by keeping in mind the needs of the home’s most likely buyer and creating a fresh inspiring look just for them, according to Pulte Homes expert Janice Jones, national vice president of merchandising.

“Everyone understands the value of de-cluttering, cleaning and refreshing a home in today’s competitive market,” Jones said. “The difference between a ‘For Sale’ and a ‘Sold’ sign often boils down to effectively staging a home to appeal to young singles, families or empty nesters—the three largest customer segments that are likely to buy your home. Home sellers should have a good idea of the type of buyer who will make an offer and, since everyone likes an updated home, some simple refreshes can achieve an updated look and feel.”

Jones recommends conducting a technology overhaul prior to staging your home. “Old technology will date your home and you seldom have a second chance to make a positive first impression,” she said. “Flat screen TVs, laptop computers, iPods with docking stations and wireless technology have eliminated the need for large bulky entertainment centers or massive desks designed to hide wiring. Once you’ve rid your home of bulky, dated stereos and TVs, it’s time to hone in on attracting prospects.”

Here are a few, additional ideas:

For singles, Jones recommends emphasizing sleeping spaces and the living room, which are critical to this group. “Singles will spend a lot of time in the living room and the bedroom, which are their sanctuaries from the outside world. As a result, there is no need to set the dining room table with place settings,” Jones said. “Instead, focus on a simple TV stand with clean lines, a flat screen TV and candles in the bedroom and bathroom.”

Young families tend to revolve around children. Items that help this demographic envision themselves living in the space include age-appropriate bedding, linens and towels, a bright rug near play areas, and strategically placed toy chests with open tops. Since kids often play or watch TV on the floor, eliminate the coffee table to create a living room that appears larger and more inviting. Jones notes to remember about the garage when staging for families. “Organize children’s toys and sports equipment to showcase the garage’s storage capacity without compromising functionality,” she said.

Empty nesters tend to seek an upgrade in quality features. Upgrading bath accessories like towel bars and toilet paper holders or decorative hanging lights to a better quality and newer style will make an impact. If the budget allows, upgrading the refrigerator, stove and dishwasher can draw in a buyer.

Lighting is also a key feature for this group. Jones advises ensuring living spaces maximize natural light. If lighting is less than ideal, add lamps or a ceiling fan with light fixtures. It’s important to open heavy blinds or window coverings when showing the home.

An absolute “must” for home stagers regardless of which demographic is being targeted is color. Most sellers are instructed to use neutral colors when repainting. However, adding the right punch of color to accent walls can create depth, enhance kitchen cabinets, or bring a boring bathroom to life.

Homeowners can find color in simple accessories, like throw pillows, coffee table books, and decorative canisters. Neutral colors in flooring materials, upholstery pieces and window dressing work well because they enhance brighter accents.

When choosing colors, Jones cautions homeowners to be aware of their sensory impact:

- Red is stimulating and encourages self confidence
- Orange promotes happiness and celebration
- Yellow is uplifting and light-hearted
- Blue is calming in softer tones and promotes clarity in deeper tones
- Green is the color of nature—it feels fresh and rejuvenating
- Aqua is restful while pink is gentle and sweet—making a great pair
- Purple tones bring out a sense of compassion

“The key is to experiment and put yourself in the shoes of the prospective home buyer,” Jones said. “It may be helpful to ask a friend or relative for a brutally honest opinion before and after you start staging. You may be surprised how little changes—with a little budget—can make a huge difference to a prospective buyer.”

Tri-Cities No. 5 for jobs

By Pratik Joshi, Herald staff writer

Continued growth in jobs and wages in the Tri-Cities is being noticed nationally.

The Milken Institute has ranked Kennewick-Pasco-Richland among the top 10 metro areas that managed to create and sustain jobs in the face of a national recession.

The Tri-Cities retained the fifth spot it earned last year, said Armen Bedroussian, a Milken research economist who helped put together the latest report.

In the Tri-Cities, jobs grew 4.5 percent in the last 12 months, he said, noting that's the highest percentage growth in the nation. The bulk of the growth was the result of the federal stimulus money for Hanford, he said.
And he noted the role of the high-tech sector in pushing the job and wage growth for the long and short terms.

The Milken report is used for economic benchmarking, he said. Corporations use the data to scout locations that have economic momentum, and civic officials and economic development agencies use the information to compare their communities to other areas and take steps to stimulate growth, Bedroussian said.

Carl Adrian, president and CEO of the Tri-City Development Council, said it's good to be on the radar of the California-based think-tank that helps business and public policy leaders identify and implement ideas for creating broad-based prosperity. That can generate interest by new businesses to explore the Tri-Cities and appreciate the area's knowledge-based economy and the presence of a skilled work force.

"We have become more resilient to the ups and downs at Hanford," Adrian said. Also, the community is committed to developing a diversified post-Hanford economy that can create new types of jobs for the growing population in the area, he said.

The Mid-Columbia Energy Initiative is a good example, he said. The group wants to transform the Hanford site and the local community into a "carbon-friendly" power-producing, energy demonstration and manufacturing site.

The research initiatives of Pacific Northwest National Laboratory and Washington State University Tri-Cities will help pave the way to develop cutting-edge technologies that could be commercialized, Adrian said. The presence of companies like Infinia and InnovaTek in the community may encourage other clean-tech companies to set up shop in the Tri-Cities, he said.

"Clean tech is a natural transition for the area," said Diahann Howard of the Port of Benton. PNNL's experts already are working on various projects to enhance smart grid applications and developing other clean energy products, said the port's director of economic development and government affairs.

The Port of Benton, in partnership with other public agencies, has continued to improve infrastructure to help recruit and retain businesses in the area, she said.

The growth of medical equipment manufacturing, food processing, health care service industry and wine industry is helping economic diversification despite the continued dominance of Hanford, said Dean Schau, former regional labor economist for the Tri-Cities. About 1,350 workers are employed in the local wineries, he said.

Agriculture, manufacturing and energy production could help sustain future growth, he said.

The Tri-City economy also gets a big push from the retirees who have moved to the area for its quality of life and weather. They spend their money locally and help the retail sector, Schau said. The presence of an aging population also has led to the development of a regional health care industry that is poised for growth.

The Tri-Cities abounds in human and social capital that can help transform the economy in years ahead, he said.

For more on the Milken report, go to www.milkeninstitute.org.

Read more: http://www.tri-cityherald.com/2010/10/16/1211833/tri-cities-no-5-for-jobs.html#storylink=mirelated#ixzz18Ou90ngo

Strip mall to be built near TRAC - Business | Tri-City Herald : Mid-Columbia news

By Pratik Joshi, Herald staff writer

Wingstop restaurant and Dutch Bros. Coffee will be moving into a new retail center across the street from TRAC in Pasco.

The first phase of the Burden Retail Center at Burden Boulevard and Convention Street in Pasco includes construction of six stores, totaling about 10,000 square feet, said developer Glen Engelhard.

Wingstop restaurant and Dutch Bros. Coffee already have leased spaces in the strip mall, he said. He's also trying to get another restaurant to come to the center, which is just opposite of TRAC.

There's virtually no commercial space available for lease near Road 68, he said. Commercial activity has picked up in the Tri-Cities in the past month and a half, he said, expressing optimism about finding tenants for the center. All retail businesses would be welcome, he said.

Ground-breaking is scheduled for Thursday. The first phase will be completed in about four months, Engelhard said.

The project is being developed in three phases because banks are not lending money, said Engelhard, who along with his partners is spending about $900,000 on construction of the first phase. He's talking with a national chain restaurant and a gas station about the site for the third phase of the project. The entire project will be spread over the four acres he bought for $1.2 million more than two years ago.

The Tri-Cities will continue to grow, he said. Developers see the area as a top spot for investment in multi-family homes, said Engelhard, who has developed 19 commercial properties in the Tri-Cities, and continues to own large chunks of land in Prosser and Richland.

He said he doesn't understand the reluctance of banks to support speculative real estate projects in the area. The Tri-Cities' economy remains strong, he said. "I don't see (real estate investment) as a risk."

Read more: http://www.tri-cityherald.com/2010/09/24/1181637/strip-mall-to-be-built-near-trac.html#storylink=mirelated#ixzz18Ot7bh8M

Construction remains strong in Tri-Cities - Mid-Columbia News | Tri-City Herald : Mid-Columbia news

By Pratik Joshi, Herald staff writer

Developer Bob Johnson found it hard to borrow money for his latest project, but that's not stopping him from developing a 100-lot subdivision in south Richland.

He's using his own money for his Branting-ham Heights project because he has strong faith in the resilience of the local economy and real estate market.

"I started the business during the worst of times in 1984," said Johnson, president of Kennewick-based Johnson Group. Since then, he's built many homes, offices and storage spaces in the Tri-Cities.

In 2007, Johnson said, he built two spec commercial buildings on Gage Boulevard for about $3.5 million each, but he wouldn't undertake a similar project today because banks won't consider it. He said banks are being extra cautious about loaning money, and are not interested in projects that aren't preleased or presold.

But Tri-City real estate professionals overall say they're optimistic about the area economy.

Eric Pearson, president and CEO of Community First Bank, agreed that banks are taking a closer look at loan applications, whether from builders or homebuyers.

"They are looking at the borrower more than the property," Pearson said, but added that his bank has approved a few spec loans, which are for homes that are not already sold.

Still, the Tri-Cities remains one of the better performing and most stable real estate markets in the country, Pearson said.

Commercial real estate loans are the most challenging, Pearson said. He said that's because commercial real estate can lose value fast when rental incomes drop, so banks are more reluctant to make such loans.

The residential market, in contrast, remains stable because people always need a place to live, Pearson said. Tri-City home prices have remained inexpensive and have appreciated gradually over the years, so he's optimistic about the future.

That's why Kyle LaPierre is about to invest $700,000 to develop a residential property in the Tri-Cities, his company's first such project in eight years. But his family company, LaPierre Enterprises, which has been in the construction and development business for 50 years, is building only one spec home and remains focused on custom-built homes for clients.

"I saw the writing on the wall and moved away from building specs many years ago," he said.

LaPierre, who has a $1 million line of credit with Banner Bank, said he has only one commercial project on his hands, a remodeling and building expansion for a doctor.

Jeff Losey, executive officer of the Home Builders Association of Tri-Cities, said the Tri-Cities is not immune to the national economy but continues to hold its own because of a strong local economy based on Hanford and agriculture.

The number of building permits issued for single-family homes increased from 814 in August 2009 to 1,157 last month, Losey said. That's a 42 percent increase.

The latest permit numbers also are an increase of 26 percent from August 2008 and up 2 percent from August 2007, Losey said, adding, "We are still in very good shape" because interest rates are low and construction costs are competitive.

But real estate professionals are concerned about the future, particularly how federal policies and the national economic mood may affect housing, said Paul Roy, sales manager and associate broker at Coldwell Banker Tomlinson in Kennewick.

Coldwell owns 1,000 lots in the Tri-Cities, mostly quarter-acre residential properties, but is not looking to buy more, he said.

At present the home market is balanced with about six months of inventory available for sale, Roy said. There were 1,098 homes on the market at the end of August, according to the Tri-City Association of Realtors.

Home sales fell from 448 in June after the expiration of the federal homebuyer tax credit to 223 in August, according to the Tri-City Association of Realtors. But the total number of homes sold year to date last month was 2,294, compared with 2,065 in August 2009.

Roy pointed out the market is still doing better than it did last year, and by year-end he expects home sales will be up 20 percent compared with last year.

About 143 of the homes sold last month in the Tri-Cities were priced below $200,000, according to an estimate from Windermere Real Estate. At least six homes also were sold that were in the $450,000 and up price range, indicating some movement in a market segment that has been slow. Also, the median home price increased from a little more than $170,000 in August 2009 to almost $180,000 last month, said the local Realtors association. The median home price was about $177,000 in June.

Bryan Andersen, who pours concrete for home foundations, said home construction has picked up in the last few weeks all over the Tri-Cities. Andersen, who works for as many as 11 builders, said the most popular homes range from 1,700 square feet to 2,200 square feet and cost under $250,000.

Andersen also said about seven Oregon builders are working on projects in the area and came here because the area is growing. Builders have had to be more flexible to go after business in a competitive environment, he said, which also means lower prices and profit margins.

Andersen, who has been working in the Tri-Cities since 1999, said he thinks the market will continue to grow. But the spec market is really tight because banks are not lending as liberally as they did a few years ago, he said.

Don Pratt, president of Don Pratt Construction, which specializes in expensive homes, agrees. Money is available for buyers with strong credit and assured incomes, said Pratt, who's just completed an office building for a Richland doctor and is building a half-dozen custom homes.

Sales of high-end homes costing $400,000 or more will continue to be slow, he said. That's partly because some potential buyers looking to move into a better home are unable to sell their existing homes.

Pratt, who's been in business for more than 30 years, also said banks have raised the bar for potential borrowers. Buyers need a high credit score and must be able to put down at least 20 percent of the cost, he said.

Qualified commercial borrowers do have access to credit, said Doug Bayne, Banner Bank's vice president and director of marketing. He said his bank will finance owner-occupied commercial projects. That means, for instance, that professionals like doctors and attorneys have a better chance of qualifying for a commercial development loan if they will be occupying the building, he said.

Brett Jorgenson, senior vice president of lending at Gesa Credit Union, said Gesa has loaned money for a small number of speculative projects but is being cautious.

"We always had money available for builders," he said, "but we can only give construction/development loans up to 15 percent of our net worth," he said.

Gesa looks at builders' track records, their financial strength and experience in the industry before approving a loan request, said Jorgenson, adding the credit union has had no defaults in construction loans in the last two years.

Read more: http://www.tri-cityherald.com/2010/09/19/1174979/construction-remains-strong-in.html#ixzz18OrhFi1c

Tri-City home resales, prices on the upswing - Mid-Columbia News | Tri-City Herald : Mid-Columbia news

By the Herald staff and The Associated Press

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.

Read more: http://www.tri-cityherald.com/2010/08/12/1127853/tri-city-home-resales-prices-on.html#storylink=mirelated#ixzz18OpR3n7W

Home sales up, but clouds ahead - Business | Tri-City Herald : Mid-Columbia news

By The Associated Press and Herald staff

WASHINGTON -- Nationwide sales of previously occupied homes rose last month after the worst summer for the housing market in more than a decade. And fears over flawed foreclosure documents could keep buyers on the sidelines in the final months of the year.

In the Tri-Cities home sales are up 20 percent for the year compared to last year at this time, said Paul Roy, of Coldwell Banker Tomlinson in Kennewick and vice president of the Tri-City Association of Realtors.

Because the Tri-Cities was not hit with high numbers of foreclosures as other areas of the country were, questions of flawed foreclosure documents should not affect the market here, he said.

Nationally, sales grew 10 percent in September to a seasonally adjusted annual rate of 4.53 million, the National Association of Realtors said Monday.

Home sales have declined 37.5 percent from their peak annual rate of 7.25 million in September 2005. They have risen from July's rate of 3.84 million, which was the lowest in 15 years. Most experts expect about 5 million homes to be sold through the entire year. That would be in line with last year's totals and just above sales for 2008, the worst since 1997.

Still, sales could fall further if potential lawsuits from former homeowners claiming that banks made errors when seizing their homes make consumers fearful of buying foreclosed properties.

The Federal Reserve on Monday became the latest regulator to announce it would be looking into whether mortgage companies cut corners on their own procedures when seizing homes. Chairman Ben Bernanke said the Fed would look intensively to see if policies, procedures or internal controls led lenders to improperly foreclosure on homeowners. Preliminary results of an in-depth report are expected to be released next month.

"We take violation of proper procedures very seriously," Bernanke said.

In a survey taken by the Realtors group this month, about 23 percent of the 2,000 agents surveyed said they have a client who is no longer interested in purchasing a foreclosed property due to the foreclosure-document mess.

"You're going to see uncertainty on the part of homebuyers," said Quinn Eddins, director of research at Radar Logic Inc., which tracks the housing market.

Mortgage applications to purchase homes last week were 29 percent below the same week a year ago, according to the Mortgage Bankers Association. At that time, buyers were rushing to purchase homes to qualify for federal tax credits.

Last month the inventory of unsold homes on the market fell about 2 percent to 4 million. That's a 10.8 month supply at the current sales pace.

Read more: http://www.tri-cityherald.com/2010/10/26/1224447/home-sales-up-but-clouds-ahead.html#ixzz18OohXao8

Murray seeks $5M for Tri-City area roads - Mid-Columbia News | Tri-City Herald : Mid-Columbia news

WASHINGTON — Millions of dollars for regional transportation projects in Washington have been included in the fiscal 2011 Transportation, Housing and Urban Development Appropriations Bill, thanks to Sen. Patty Murray, D-Wash.

The bill includes about $5 million for projects in the Tri-City area, including the ongoing Highway 12 improvements between the Tri-Cities and Walla Walla.

The money was included in the bill by Murray, who's chairwoman of the Transportation, Housing and Urban Development Subcommittee.

"Especially now, it is critical to steer funding into transportation projects that create jobs and boost local economies in our backyard in Central Washington," Murray said in a statement.

For the Tri-City area, the bill proposes $1 million for Ben Franklin Transit to help replace its aging vehicle fleet; $1.4 million for rail improvements at Big Pasco Industrial Center; $1 million for the Red Mountain Interchange project; $500,000 for pedestrian pathways and transportation improvements in the Southridge area; and $1 million for right of way acquisition for Phase 7A of the Highway 12 project.

Murray also included millions of dollars for other Eastern Washington projects, including $2 million for rail improvements at the Port of Moses Lake, $1 million for Grant County Transit to build a new administration building and $1.3 million for an underpass on MLK Boulevard in Yakima's business district.

The bill, which was approved Wednesday by Murray's subcommittee, now goes to the full Appropriations Committee.

Many Tri-City public officials lauded Murray's efforts.

Randy Hayden, director of planning and engineering at the Port of Pasco, said Murray understands the importance of transportation to spur economic growth and create jobs.

The $1.4 million for the port would help the port continue its rail infrastructure rehabilitation project that began in 2005. Hayden said a rail-link helps to recruit manufacturers and provide a way to ship local products. If the port gets the money, construction of a new mile-long track will start next spring, he said.

"Once again, Sen. Murray has come through for the citizens of the Tri-Cities," said Benton County Commissioner Leo Bowman, referring to the money designated for two projects along Interstate 82. The money would pay for engineering and design and "get us to be shovel-ready," he said.

The two-part project would help construct a roundabout at the intersection of Highway 224 and Highway 225 near I-82 in Benton City and create a new Red Mountain interchange at Milepost 100 on I-82.

Both projects, which are estimated to cost $30 million, would improve traffic flow at the five-legged intersection at the Benton City interchange and provide more direct access to the Red Mountain winery area and West Richland, Bowman said. The projects also would improve emergency response times to the area by up to 50 percent, which can be critical in crisis situations, he said.

Kathy McMullen, Ben Franklin Transit's manager of service development, was excited about the possibility of getting money. "It's very much needed. We want some new buses for folks to ride in," she said.

Fourteen of the system's buses date to 1988, McMullen said. They have about 1 million miles on them and cost more to maintain, she said.

It would cost about $10 million to replace all old buses with new hybrid buses, McMullen said, and Ben Franklin Transit will seek additional federal money to do that. "We appreciate Sen. Murray's help," she said.

Jim Kuntz, executive director of the Port of Walla Walla, which led efforts for the Highway 12 improvements, shared a similar sentiment. "Things will start rolling now," he said.

Highway 12 work has already received $2 million from the state Legislature to help complete design, environmental assessment and land acquisition for Phase 7A, which includes building a new 5.5-mile, multilane highway from Nine Mile Hill north of Touchet to near Lowden.

The state Department of Transportation needs to purchase about 340 acres for the work and the proposed $1 million in federal money would be a great help to move the project forward, Kuntz said.

-- Pratik Joshi: 509-582-1541; pjoshi@tricityherald.com; Business Beat blog at www.tricityherald.com


Read more: http://www.tri-cityherald.com/2010/07/22/1101220/murray-seeks-5m-for-tri-city-area.html#storylink=mirelated#ixzz18CZmtDUA

Richland OKs annexation; 1 more vote needed - Mid-Columbia News | Tri-City Herald : Mid-Columbia news

RICHLAND — Just one more city council decision is all that stands in the way of Richland annexing 1,878 new acres where a city-size development is planned.

The Richland City Council on Tuesday unanimously approved the ordinance annexing the land south of Badger Mountain and just west of Rancho Reata with no discussion, except a brief thumbs up from Councilman David Rose.

"I think it's great we have a petition that is signed by 100 percent of the property owners for annexation," Rose said.

Mayor John Fox noted that's a rarity for annexations into the city.

But every ordinance takes two votes for final passage. The council will vote on the annexation again Dec. 7.
Rick Simon, the city's development services manager, said if the council approves the annexation ordinance a second time, that will be the final step toward bringing the land into the city.

It's been a process years in the making, from the city's first suggestion that it should grow to the south back in 2002.

The proposal to add 3,300 acres to Richland's urban growth area ended up going through an appeal before the Eastern Washington Growth Management Hearings Board and ultimately being scaled back before finally being approved in 2007.

The acreage annexed includes the 40-acre, 79-lot Reata Ridge subdivision; 325 acres owned by Bill and Holly Wilson primarily used as an orchard; and about 1,500 acres owned by Nor Am Investments that is to be developed with as many as 5,000 homes, shops, offices, parks and a wine village.
Simon projected that when fully developed, the area will bring in a net of about $350,000 per year to the city's budget.

Loren Combs, the attorney for Nor Am, said the developer has submitted to the city schematics for sewer lines and other improvements to the land and is waiting for the annexation to be complete and permits to be issued before breaking ground.

Houses likely will start being built in 2012, Combs said.

The land is expected to be developed for 20 years, and ultimately could be home to an estimated 12,000 people.

Also Tuesday:
The council unanimously adopted an ordinance setting the city's property tax levy for 2011. The city is opting not to take the 1 percent property tax collection increase allowed by law, and is applying $400,000 of interest income from bonds to renovate the Richland Public Library toward property tax reduction.

The reduction will come over two years -- $250,000 applied in 2011 and $150,000 applied in 2012, said Ron Musson, administrative services manager.

Under that plan, the city's property tax levy rate will drop by about 12 cents, from $3.14 per $1,000 of value in 2010 to $3.02 in 2011.

That represents about a 5-cent reduction over the planned rate without the library money being applied, or a savings of about $10 per year for a $200,000 home, Musson said.

Overall, the owner of a $200,000 home should see a $24 drop in property taxes compared to 2010.

-- Michelle Dupler: 582-1543; mdupler@tricityherald.com


Read more: http://www.tri-cityherald.com/2010/11/17/1255535/richland-oks-annexation-one-more.html#storylink=mirelated#ixzz18CYbOgeX