Real Estate Blog

On my other real estate blog, which focuses on the investment side of real estate, I posted some information about developing foreclosure trends for the coming year.  Although I feel our local Wenatchee real estate market is not really typical at this time, it’s interesting to follow the overall foreclosure trend, which does affect real estate in general.  Here is the excerpt from that post:

Recent reports indicate the number of real estate foreclosures nationwide could increase by about 25% this year. This does not mean, of course, that 25% of loans will go into default. Less than 1% of loans nationwide have been going into foreclosure, so that is the number being used as the basis. So, this 1% could increase to about 1.25% of the total in the coming year.

If you have specific questions about Wenatchee area real estate, or current foreclosure inventory, please contact me:
Carol@TopPropertiesWenatchee.com
http://TopPropertiesWenatchee.com

source: Will Foreclosure Inventory Increase?

Here is some information out of a recent National Association of Realtor’s    press release regarding the home sales market, and predictions for value increases in 2006:
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WASHINGTON (December 12, 2005) – "The housing market for 2005 is headed for a fifth consecutive annual record, and sales activity in 2006 is expected to be the second best year in history, according to the National Association of Realtors^®.

The 30-year fixed-rate mortgage should trend up modestly and reach 6.6 percent during the second half of 2006.  Existing-home sales, expected to rise 4.7 percent to 7.10 million this year, are likely to decline 3.7 percent in 2006 to 6.84 million. New-home sales, projected to increase 7.0 percent to 1.29 million this year, are forecast to drop 4.8 percent to 1.23 million in 2006 – also the second best on record. Total housing starts for 2005 should grow 5.8 percent to 2.06 million units, the highest since 1972, and then decline 4.8 percent to 1.92 million next year.

NAR President Thomas M. Stevens from Vienna, Va., said that housing has always been the soundest investment for most families. “As the old saying goes, homeownership beats the heck out of a drawer full of rent receipts,” said Stevens, senior vice president of NRT Inc. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a homeowner household is 36 times higher than a renter household.

Stevens said that the national median home price has never declined since good recordkeeping began in 1968. “Although there can always be a temporary decline in a given area if jobs are weak and there is an oversupply of homes on the market, people who stay in their homes for a normal period of homeownership generally see healthy returns over time. There are no guarantees, but there are very good odds.”

The national median existing-home price for all housing types, which is experiencing a surge estimated at 12.7 percent to $208,800 for 2005, is expected to rise another 6.1 percent in 2006 to $221,400. The median new-home price is likely to rise 5.5 percent to $233,100 in 2005, and then grow by 7.3 percent next year to $250,100 as higher construction costs impact the market."
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Overall, 2006 is predicted to be a very good year for home sales, yet not as good as 2005.   Without much doubt, interest rates will increase (moderately) and forecasts continue to support rising values, but at a slower pace than this year.   Some markets will experience  less growth than predicted and some will experience more growth than predicted.  These are all averages and each region and local market varies with economic conditions.    It’s important to work with a real estate professional to constantly keep you informed of current local information… and to explain the pros and cons of any transaction for your specific circumstances.

Carol@TopPropertiesWenatchee.com
www.TopPropertiesWenatchee.com

source: Strong Housing Market Predicted for 2006

Are building prices going sky high?  I’ve made a couple of previous posts about my concerns for what will happen with new home construction costs in the Wenatchee real estate market… and across the nation.  Here is a link to an article in Inman News that explains a little more about the overall situation.  Keep in mind, this was an article written after Hurrican Katrina but before Hurricane Rita (or whatever other Hurricane’s still come along this season), so the situation will only get worse.    The Inman article estimate on the projected percentage of cost increase in new construction is far lower than what I’ve been hearing.   On yesterday’s news, interviewed building suppliers were saying costs have increased as much as 30%!  We’re not just talking lumber, which is in such high demand, but many of the materials used in new construction (such as roofing) are oil based. 

This all could affect the rental market, as well, while people opt to continue to rent while waiting for construction prices to level out.   Will this affect people’s decision to sell their homes (to build a new home) because of the looming cost of new construction?   Will they sell their home (taking their huge equity) and become renters while the prices stabilize?  Will the renters decide to give up on their dream to own a home because it is too expensive?  Will there be even greater interest in existing home sales, where prices per square foot are far more attractive than new construction?     Remember Newton’s Third Law… "for every action there is an opposite and equal reaction".  

Our elected politicians will have a significant effect on the future of the housing market (and entire economy) across the country.  While they want to do the humane thing of promising to help rebuild, it creates a burden on other areas of the country, where the labor and supplies are being drawn from.    This causes a trickle out (dollars leaving) on the local economies, literally affecting everyone in every large city and small town across the United States. .. yes Wenatchee, too! 

We’re such an intertwined economy, there will be many actions and reactions, which will cause another reaction, causing another reaction and on and on and on.   Reminds me of  the old saying: "Oh what a tangled web we weave". 

source: Up, Up… and Away

For some reason, Wenatchee seems to have some of the highest gasoline prices in the state.  The lowest price I found in  the Wenatchee area recently area was $1.94 at Costco in East Wenatchee.   I’ve been in a gas saving mind set lately, finding myself constantly looking for ways to save a few gallons of gas for myself, or someone else.  I’m more into "carpooling" to events these days, which is actually fun because it becomes a social event.  I used to like to take my car everywhere because it gave me the freedom to control my own schedule.  Now, I’m learning to give up a little control in the interest  making my small contribution to the oil consumption crisis.    The good news, of course, is traffic congestion isn’t nearly what it is in the "big cities" and our proximity from one place to another is much closer… meaning we don’t have to break the budget, even with record high fuel prices.

I saw an interesting article on hybrid cars on the Bankrate.com website.   It is a fairly short article that covers, in surprising detail, the current status of the hybrid market… pros and cons.

I still talk with a lot of people moving (or considering moving) into the area from other parts of the country.  I am constantly being told what a good value Wenatchee real estate is compared to other market areas.  And, of course, we have some of the best, and most diverse, recreational opportunities in the country. 

If you’re interested in information on real estate in the Wenatchee or the surrounding areas, please e-mail or call me. 

Have a great week!
Carol

Carol@TopPropertiesWenatchee.com

source: Wenatchee Gas Prices

Google has just launched a blog search feature.  This is really cool, because if you forget the address of any blog you can just go to the Google blog search and type in the name of the blogger or the city or subject… whatever is most appropriate.  In my case I typed in "Wenatchee Real Estate" and my blog entries were all over the place.   Then I typed in just the word "Wenatchee" and there they were again.   I must be the only one in the world "blogging"  in the entire Wenatcee area. 

This feature in Google is just for weblog searches, and not web sites in general.  You can type in your favorite hobby or the city where you live or whatever and get a bunch of blog entries to choose from.    This is totally awesome!   Google Rocks!

source: Google Launches Blog Search

Here is a sign of the developing tangled economic web that Hurricane Katrina is weaving.  Last week I posted an article about my concern over the potential for dramatic increases in the cost of new construction, here and across the nation.  Yesterday I heard that some of the local (Wenatchee) box stores are restricting the amount of lumber an individual can buy.  I haven’t been to any of the stores to confirm this story, but certainly would not be surprised by this development.   I wonder if this is just for the at-home-handyman or if restricted sales include builders.  

In many ways our Wenatchee real estate market is unique and unaffected by other parts of the country… yet, in a situation like this, we are at the mercy of the law of supply and demand just like any other market area. 

source: Lumber Sales Being Restricted?

Without the benefit of a crystal ball, I’m going to make a prediction and recommendation.  Due to the sudden and ever increasing demand on building materials and petroleum based products (as a result of Hurriane Katrina), I recommend locking in a price on a new construction home as soon as possible.  This doesn’t mean I am necessarily recommending building a new home, but if you are seriously considering a new construction home, you should definitely consider making a committment (at a guaranteed price) as soon as possible.   

We are already hearing about rising costs in the Wenatchee real estate market area and, as recovery efforts get into full swing through the hurricane ravaged area, the cost of new construction everywhere is sure to go up, up, up.    As prices for new construction rise, resale homes (prevously lived in) could become a more attractive value.  As prices increase on new construction, existing homes will likely increase as well although, most likely, at a somewhat slower pace. 

Whether you’re interested in researching available inventory on existing homes, or the possibility of having a new home built, call me for up-to-date information.    In the meantime, if you’d like to do some of your own research, please visit my primary real estate website. 

source: New Construction Recommendation