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Is lower county real estate recovering? Some say it's on the mend
By MIKE JOHNSTON senior writer found at kvnews.com
Lower Kittitas County — Watchers of the Lower Kittitas County real
estate market see the same sales figures and disagree only in timing — for
some the recovery has already begun, but others say it’s down the road a bit.
Yet those recently contacted seem to agree the market’s comeback will be a slow one, but it will occur, eventually.
They also agree it’s a great time to buy, if you can get the financing in these troubled, economic times.
“We’ve seen the housing market collapse, but we’re seeing that it’s on the mend in Lower County,” said Rory Savage, owner of Windermere Real Estate/Ellensburg. “My hope is that it continues and starts to work up to the higher-priced homes.
Yet those recently contacted seem to agree the market’s comeback will be a slow one, but it will occur, eventually.
They also agree it’s a great time to buy, if you can get the financing in these troubled, economic times.
“We’ve seen the housing market collapse, but we’re seeing that it’s on the mend in Lower County,” said Rory Savage, owner of Windermere Real Estate/Ellensburg. “My hope is that it continues and starts to work up to the higher-priced homes.
“But, right now, we’re seeing more activity.”
Coming up?
Savage, a local real estate agent since 1985 in Ellensburg, said the recent uptick in sales is “up” compared to a recent low point in Lower County sales in the first quarter of 2009.
The activity Savage said he’s seeing is from first-time home buyers and those selling what he calls entry-level homes and mid-entry homes priced at more than $100,000 to around $200,000. Most of these homes have been reduced in price to match their current market value.
In January through March 2009, there were 41 sales of all types in Lower County — land, commercial property and homes — with most of them being residences, according to the Northwest Multiple Listing Service.
Those first quarter 2009 sales were 45.3 percent less than the 75 sales recorded a year ago in first quarter 2008, and 55.4 percent less than the 92 sales of all types in Lower County in first quarter 2007.
The sales in first quarter 2009 included six homes in January, eight homes in February and 18 houses in March.
In April, 23 homes were sold in Lower County, with the majority averaging at about $200,000.
The average price among most of the homes sold in Lower County in April 2008 was $234,000.
Countywide, there’s been a 13.3 percent drop in median home prices between first quarter 2008 and first quarter 2009, according to the Washington State University Center for Real Estate Research.
“I think what we are seeing is the market beginning to recoup, and it’s starting at the lower-priced end of the market,” Savage said.
Longer recovery
Bob Hansen, commercial real estate broker for RE/MAX Community Realty in Ellensburg, said the recent slight upswing coincides with an increase in sales and interest that occurs every year in February and March after the bleaker winter months.
He said the recent residential sales are connected to lowered interest rates and first-time home buyers who have qualified for a loan or a federal program and who want to get in on the $8,000 tax credit available to them if they purchase.
Hansen thinks a slow, steady climb in the Lower County residential market won’t really start until late this year or in the first quarter of 2010.
Although prices have dropped, he said most Kittitas County and Pacific Northwest homes have held their value better than many other areas of the nation that have seen dramatic industrywide lay-offs and plummeting residential values.
Hansen said it has yet to be seen what lay-offs at Central Washington University and in school districts, state agencies and local governments will do to the local market.
He estimated full market recovery could take five to seven years.
Fellow RE/MAX real estate agent Roger Weaver is more optimistic. He believes the Lower County’s market recovery has either just started or will start later in the second quarter.
“It’s a perfect storm for the buyer,” Weaver said. “It’s a tremendous time to buy. Residential prices have been reduced or are going down. Basically, we’re having a sale with plenty of product selection.”
Some of the recent increase in sales have come from foreclosure sales and bank-approved “short sales,” or a sale for less than what is still owed on a home.
The state of Lower County’s commercial property market has Hansen more pessimistic. From what he’s read and researched, the local commercial market won’t begin improving until after the first quarter of 2011.
Before then, billions of dollars in commercial building mortgages will hit their renewal dates and many commercial operations won’t be able to meet the original loan conditions and won’t be able to refinance in light of plunging values.
Last fall, three commercial property deals in Lower County were withdrawn by the buyers because of the worsening economy. One could have brought new jobs to the Ellensburg area.
As of the end of April, Hansen knows of only two commercial land or building sales that have occurred so far in 2009.
“I’ve never seen a market like this in my 36 years in the real estate business,” Hansen said. “I’ve been through several recessions but nothing like this.”
Opportunity
Although “things don’t look good,” Hansen said there are opportunities for those who can meet tougher loan standards.
He said someone may have to sell their home for less than what it was valued in 2007, but they, in turn, can potentially purchase with the sales money more than what they had to begin with.
“It’s a mental thing,” Hansen said. “One has to get over having to price their home for less.”
Savage said the nation’s economic crisis and where it will take the Lower County real estate market is hard to predict; “it’s all uncharted territory.” He thinks some segments of the local residential market have hit bottom and are due to rise.
He says he’s “very worried” about the future of homes in upper price ranges that are not moving, even with price reductions.
“But I’m still very hopeful for the Ellensburg area; we have pricing here that allows first-time buyers to get into good homes with an approved loan,” Savage said.
Waiting for local market movement
If the Lower County real estate market is showing signs that it's in the early stages of recovery, it's a welcome sign for Gordon and Jane Kelly.
Indeed, they'd like it to hurry up.
So would many other local property owners trying to sell their homes and land.
The Kellys, Kittitas Valley residents since they came as students to Central Washington University in 1969-’70, have had their home and three acres off Cedar Cove Road west of Ellensburg listed for sale since June.
"This has gone on a lot longer than we expected,” Gordon said. "It's now becoming more of a financial issue for us; it's starting to be a bit of a strain. We'd really like it to sell sooner than later."
Gordon said his wife wants to move closer to Ellensburg, and it's an opportunity to downsize and be closer to friends, family and services. They borrowed money on their equity to buy a building lot in Ellensburg.
Soon after listing their property in June, they got visits by prospective buyers, but no offers.
Those visits dropped in the winter, and there's been a few in early spring, but it's been a month since the last visit. Still, no offers.
Gordon said they've reduced the price three times since listing; now it's $299,900, about 13 percent less than the first listing price.
He said he realizes the home and property isn't something for the typical first-time homebuyer but would fit someone coming from elsewhere to live in the country.
Gordon said he and his wife have been praying about the situation and are ready to accept whatever happens.
"If God wants it to sell, it will sell," Gordon said. "If he doesn't want it to sell, it won't sell."
Coming up?
Savage, a local real estate agent since 1985 in Ellensburg, said the recent uptick in sales is “up” compared to a recent low point in Lower County sales in the first quarter of 2009.
The activity Savage said he’s seeing is from first-time home buyers and those selling what he calls entry-level homes and mid-entry homes priced at more than $100,000 to around $200,000. Most of these homes have been reduced in price to match their current market value.
In January through March 2009, there were 41 sales of all types in Lower County — land, commercial property and homes — with most of them being residences, according to the Northwest Multiple Listing Service.
Those first quarter 2009 sales were 45.3 percent less than the 75 sales recorded a year ago in first quarter 2008, and 55.4 percent less than the 92 sales of all types in Lower County in first quarter 2007.
The sales in first quarter 2009 included six homes in January, eight homes in February and 18 houses in March.
In April, 23 homes were sold in Lower County, with the majority averaging at about $200,000.
The average price among most of the homes sold in Lower County in April 2008 was $234,000.
Countywide, there’s been a 13.3 percent drop in median home prices between first quarter 2008 and first quarter 2009, according to the Washington State University Center for Real Estate Research.
“I think what we are seeing is the market beginning to recoup, and it’s starting at the lower-priced end of the market,” Savage said.
Longer recovery
Bob Hansen, commercial real estate broker for RE/MAX Community Realty in Ellensburg, said the recent slight upswing coincides with an increase in sales and interest that occurs every year in February and March after the bleaker winter months.
He said the recent residential sales are connected to lowered interest rates and first-time home buyers who have qualified for a loan or a federal program and who want to get in on the $8,000 tax credit available to them if they purchase.
Hansen thinks a slow, steady climb in the Lower County residential market won’t really start until late this year or in the first quarter of 2010.
Although prices have dropped, he said most Kittitas County and Pacific Northwest homes have held their value better than many other areas of the nation that have seen dramatic industrywide lay-offs and plummeting residential values.
Hansen said it has yet to be seen what lay-offs at Central Washington University and in school districts, state agencies and local governments will do to the local market.
He estimated full market recovery could take five to seven years.
Fellow RE/MAX real estate agent Roger Weaver is more optimistic. He believes the Lower County’s market recovery has either just started or will start later in the second quarter.
“It’s a perfect storm for the buyer,” Weaver said. “It’s a tremendous time to buy. Residential prices have been reduced or are going down. Basically, we’re having a sale with plenty of product selection.”
Some of the recent increase in sales have come from foreclosure sales and bank-approved “short sales,” or a sale for less than what is still owed on a home.
The state of Lower County’s commercial property market has Hansen more pessimistic. From what he’s read and researched, the local commercial market won’t begin improving until after the first quarter of 2011.
Before then, billions of dollars in commercial building mortgages will hit their renewal dates and many commercial operations won’t be able to meet the original loan conditions and won’t be able to refinance in light of plunging values.
Last fall, three commercial property deals in Lower County were withdrawn by the buyers because of the worsening economy. One could have brought new jobs to the Ellensburg area.
As of the end of April, Hansen knows of only two commercial land or building sales that have occurred so far in 2009.
“I’ve never seen a market like this in my 36 years in the real estate business,” Hansen said. “I’ve been through several recessions but nothing like this.”
Opportunity
Although “things don’t look good,” Hansen said there are opportunities for those who can meet tougher loan standards.
He said someone may have to sell their home for less than what it was valued in 2007, but they, in turn, can potentially purchase with the sales money more than what they had to begin with.
“It’s a mental thing,” Hansen said. “One has to get over having to price their home for less.”
Savage said the nation’s economic crisis and where it will take the Lower County real estate market is hard to predict; “it’s all uncharted territory.” He thinks some segments of the local residential market have hit bottom and are due to rise.
He says he’s “very worried” about the future of homes in upper price ranges that are not moving, even with price reductions.
“But I’m still very hopeful for the Ellensburg area; we have pricing here that allows first-time buyers to get into good homes with an approved loan,” Savage said.
Waiting for local market movement
If the Lower County real estate market is showing signs that it's in the early stages of recovery, it's a welcome sign for Gordon and Jane Kelly.
Indeed, they'd like it to hurry up.
So would many other local property owners trying to sell their homes and land.
The Kellys, Kittitas Valley residents since they came as students to Central Washington University in 1969-’70, have had their home and three acres off Cedar Cove Road west of Ellensburg listed for sale since June.
"This has gone on a lot longer than we expected,” Gordon said. "It's now becoming more of a financial issue for us; it's starting to be a bit of a strain. We'd really like it to sell sooner than later."
Gordon said his wife wants to move closer to Ellensburg, and it's an opportunity to downsize and be closer to friends, family and services. They borrowed money on their equity to buy a building lot in Ellensburg.
Soon after listing their property in June, they got visits by prospective buyers, but no offers.
Those visits dropped in the winter, and there's been a few in early spring, but it's been a month since the last visit. Still, no offers.
Gordon said they've reduced the price three times since listing; now it's $299,900, about 13 percent less than the first listing price.
He said he realizes the home and property isn't something for the typical first-time homebuyer but would fit someone coming from elsewhere to live in the country.
Gordon said he and his wife have been praying about the situation and are ready to accept whatever happens.
"If God wants it to sell, it will sell," Gordon said. "If he doesn't want it to sell, it won't sell."
comments NM wrote on May 13, 2009 2:52 PM:
" No surprise that several real estate agents think its a great time to
sell - the article is a joke "
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