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Housing recovery |
Good Afternoon,
2013 was the turn around year for real estate in a positive direction. The first quarter of 2013 locally home price were up 25% a big turn around. The low amount of homes on the market had a strong impact with our market creating a very solid and hot housing market. The amount of sales in 2013 was the same volume we saw in 2005 and 2006 but the majority of all transaction were in the $175,000 - $275,000 price range. The low interest rates also had a significant impact with our market motivating consumers. The demand of housing in Clark County has always been strong it just made some shifts over the past four or five years. Now we are seeing some stronger signs with new construction meeting the demand of the market. The rental market in our area is "white hot" in fact it is one of the lowest vacancy rates in the nation and you are seeing apartment development throughout Clark County increase for many reasons, one is our population is rising, second new people enter the market that graduated from high or college and they are own their own not living at home because the economy is recovering (and there is no place for them to live), a tight residential market forcing someone to rent because they can not find the home they want, and Portland has an urban growth boundary that reached its capacity. Clark county has significant opportunity because the real estate exists and so does the planning.
My prediction: the year 2014 the real estate is going to be a great market. The market is going to "cool down" a bit, nothing to be alarmed about. We will see more inventory which slows down the rise in home values and interest rates are going to rise which directly impacts the market. When you look at the report new listings for December are up 25% YTD and Pending sales down 30% for December compared to November indicating rising inventory which is a normal fluctuation from the distressed market we faced over the years to very low amount of homes we have currently in a hot market, but it is only hot in certain price ranges keep that in mind. With home values up and rising more owners can enter the market. 2014 is going to transition into a "normal market" or change towards it. There are many people who want to down size or sell because they may not be under-water with the value of their home. Also, economic job growth is slowly growing. The more jobs you have the better the real estate market is, the better jobs you have may result in higher real estate values. Real Estate improves recessions as homes sell in Clark County taxes are paid to the state, jobs are created. When a single transaction occurs jobs are created and taxes are paid. July had 681 homes sell so you can expect that Clark County is improving slowly but surely with economic development Other factors that make our market strong are no income taxes so people move here. Washington State is possibly the third best state for migration, people migrate from all over the nation, and we get many people moving here from Portland Oregon. Lets take a look at the statistics from 2013 below:
Closed sales for December
475 closed transactions
8.2% increase from Novembers 439
21.8% increase in sales from last December
Best December since 2006!
Pending Sales
342 down 30.3% compared to last month
Down 5.5% compared to December last year
New Listings
424 new listings on the market
Down 24.4% compared to Novembers 561
Increased 18.4% compared to December 2012
Inventory
4.5 meaning it would take 4.5 months to sell our current amount of homes
2,127 active residential homes on the market in Clark County
The real number of today's Inventory
1,844 Active listings
296 Short Sale Pending
133 Short Sales
258 Proposed To Be Built
169 Under Construction
91 Bank Owned REO
47 Bankruptcy
1,074 Real Homes on the market after you subtract the Short Sale Pending,
Proposed to be built, Under Construction, and Bankruptcy.
Correlation
1074 actual listings and 475 closed sales indicates a demanding market
Year-to-Date
6,504 closed sales for 2013
Up 19.1% compared to the end of 2012
New listings up 25% from the same time frame of last year
The Average and Median Sales Prices
$250,300 is the average sales price up 12.7% same time as 2012
The average last December 2012 was $222,100
$224,900 is the median sales price: meaning this is where the majority of all transaction occur at
The median homes sales price increased 15.6% from $194,500
Sold Price ranges as of today going 30 days back 02-12-13
From:
$50,000 - $140,000 = 40
$141,000 - $231,000 = 123
$231,000 - $321,000 = 75
$321,000 - $411,000 = 36
$411,000 - $501,000 = 10
$501,000 - $591,000 = 7
$591,000 - $681,000 = 5
$681,000 - $771,000 = 2
$771,000 - $861,000 = Zero
Area with most sales
Area 22 the Evergreen High School area saw 53 closed transactions
Area 32 Camas had 42 closed sales as the 2nd highest place of interest
Area 61 Battle Ground closed 32 transactions
New Construction 2013 Four Quarters of Activity
190 Permits were issued 29% increase compared to this same time of 2012
From 2004 to 2013 the average number was 219 permits
Total volume of construction was 120 million dollars up 56% compared to this same time last year
The average volume from 2004 to 2013 is 202 Million
Residential construction rose 38% in the Fourth Quarter of 2013
Residential valuation of construction was 62 million and in 2012 it was 45 million
Commercial Construction contributed 45% and showing 86% increase since 2012
Total valuation of commercial construction was 54 million in 2012 it was 29 million
RMLS 627 Brand New Homes sold that were listed as a 2013 built as 02/12/13
Lots and Land
565 lots listed in Clark County
An increase in preliminary approved lots for the fourth quarter of 2013 with 446
A 5,000 percent increase than 2012 only 8 lots were preliminary approved
From 2004 to 2013 the average fourth quarter preliminary approved lots were 310
Multifamily Fourth Quarter Report
The trends are low vacancy rates, rising rents, and construction increasing with multifamily units. In Clark County the vacancy rate is 2.37% Highest market since 1999.
The average rent:
1 Bed 1 Bath $653
2 Bed 1 Bath $716
2 Bed 2 Bath $839
3 Bed 2 Bath $930
The average day on the market for an apartment is 8 days. A High Demand for apartments exits. Class A buildings are on the rise which impacts the class C buildings with rents. $1.10 per square foot average rental.
Weather
December had snow and ice which impacts real estate
New Listing
Thank you very much for taking the time to read this report. If you know someone looking to purchase real estate or someone considering selling please contact me at your convenience. Real Estate can be complex and having a good agent is critical.
Have a great day!
Bret Bucher
360-600-5555
360-334-6694
Broker
Sandy Scott Uptown Realty INC
1400 Main Street Vancouver Wa
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The information supplied herein is from sources deemed reliable but not guaranteed. Some of the statistics come from the RMLS. Sandy Scott Uptown Realty INC accepts no responsibility should the information prove to be inaccurate or incomplete.
Bret Bucher
360-600-5555
360-334-6694
Broker
Sandy Scott Uptown Realty INC
1400 Main Street Vancouver Wa
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