Rediscover Mediterranean Villas – October 19th

Posted on October 11, 2013 by Jessica

Join us on October 19th between 1:00 to 5:00 pm for a first ever public viewing as we showcase two new luxurious home plans at the beautiful Mediterranean Villas. These gorgeous homes feature double master bedrooms and private guest suites, each presented with the careful attention to quality and detail that builder Devoted Builders has become known for.

Bring a friend who is ready to move! Refer a friend who buys and we’ll reward both of you with a weekend getaway package! Five beautifully customized, move-in ready homes are now available.

Exclusively presented by your Referred Real Estate agents Jennifer Cowgill, (509) 947-5670, and Jessica Johnson, (509) 947-2230.

Call for directions or simply attend with us on October 19th at 6013 Vincenzo Drive, Pasco, WA 99301.

Tri-Cities Real Estate Market Update – Second Quarter 2013

Posted on September 17, 2013 by Jessica

The second quarter (plus July) numbers are available from the MLS. Our second quarter number of homes sold is up significantly over 2012 with 893 homes sold in 2013 versus 815 in 2012. The number of homes on the market has also decreased (1392 homes on the market in July of 2013 versus 1456 homes on the market in July of 2012), meaning demand for the homes that are on the market has increased. An increase in demand results in an increase in price. Comparing July of 2012 versus 2013, average sales prices are up 2.6%.

The number of homes under contract is also up over last year significantly. Comparing July 2012 versus July 2013, the number of homes under contract have increased 26.2%. The first seven months of 2013 pendings were up an average of 13.48%.

According to the Tri-City Development Council, between the 2010 Census and 2013 estimates, the population has increased in this area about 5,000 per year. Remember, people need a place to live!

Why Invest In the Tri-Cities

Posted on July 30, 2013 by Jennifer

When buying any kind of real estate you want to make sure that you are making a good investment because you never know when you might need to sell it, whether that be a single family home, condo, or even raw land.

That being said we have all heard the expression location…location…location when considering a piece of real estate to invest in as if the location of the property is ideal, demand should always be high and therefore, will return a higher price than property in a not-so-desirable location. While this is absolutely critical there are a few other things to consider before making what could be a very smart or a disappointing real estate purchase. Although location is still at the top of the list, there are two other critical points to consider.

A real estate buyer or investor must also answer the questions “Who is buying?” and “What is the health of the community they are buying into?” These two factors are often overlooked but they are essential for making a wise real estate purchase.

An area like the Tri-Cities of Richland, Pasco, and Kennewick are perfect for many types of buyers – critical to note when deciding where to buy. The “Who is buying?” question is important because the more types of buyers that can buy in a particular area means there will be higher demand when you go to sell and that always equates into higher sales prices. The demand in Tri-Cities is high due to it being a great place to raise a family, start a new business, retire or purchase a second home, not to mention the wealth of recreational opportunities that abound. This is a wonderful recipe for high demand and higher sales prices.

The other thing to look at when buying is the health of the community. Variables to consider include:

Is the area growing?
Are the available jobs in the area tied to a variety of industries?
What natural resources are readily available?
Are the health care system and school systems highly rated?

According to the Tri-Cities tourism bureau, we have a strong school system, virtually no traffic congestion, growing health care, low crime rate and annual precipitation of less than seven inches. All of this along with its varied recreational activities and incredible weather makes it a perfect place to invest in real estate.

The Tri-Cities visitors and convention bureau says it best with their “Water, Weather and Wine” slogan. There is no question that the Tri-Cities is rich in each of these areas and makes it a very attractive investment location.

If you are considering investing in the area and would like additional information, please contact Jessica Johnson at Referred Real Estate at (509) 947-2230 or Jennifer Cowgill at (509) 947-5670.

Tri-Cities Real Estate Market Update First Quarter 2013

Posted on June 14, 2013 by Jessica

The National Association of REALTORS® has released their market statistics for the Kennewick-Richland-Pasco area first quarter 2013. Our area did see a modest increase in median home prices year over year (comparing quarter 1 of 2012 with quarter 1 of 2012) of 2.3%, putting our median home price at $181,700.

Nationally, median home prices rose 11.2% comparing quarter 1 2012 with quarter 1 2013, but remember, many areas of the country saw big declines between 2009-2011 and are still not back up to pre-recession levels. In fact, the National Association of REALTORS® also tracks “Housing Equity Gain” which reflects price appreciation over 3,7, and 9 year terms. The 7-year Housing Equity Gain for the US total is still -$40,867 although Kennewick-Richland-Pasco reports a 7 year Housing Equity Gain of +$29,700.

The below graphs indicate the snapshot of monthly inventory (number of homes on the market) for 2012 vs the first few months of 2013. Our inventory has remained fairly consistent with last year.

The below chart illustrates the year over year number of solds in the Tri-Cities comparing 2012 with 2013. The number of solds so far this year is 900, which is modestly above the 807 sold year-to-date in 2012.

Additionally, NAR tracks building permits. Compared to the previous year (which is actually a sum of the past 12 months of building permits issued), single family housing permits are up 28.4%. (as opposed to 25.6% nationally). This indicates construction is on the rise, which is an indicator that inventory levels have stabilized.

If you have questions on what these figures mean to you, please don’t hesitate to give us a call. You can reach Jennifer Cowgill at (509) 947-5670 or Jessica Johnson at (509) 947-2230.

Sources:

http://www.realtor.org/sites/default/files/reports/2013/local-market-reports-2013-q1/local-market-reports-2013-q1-WAKennewick.pdf

http://tcarmls.com/wp-content/uploads/2013/05/STATS-FOR-2010-2013-MEDIAN.pdf

Should I Buy a New Home?

Posted on February 5, 2013 by Jennifer

There are many things to consider when buying a home – should you buy something that has been lived in before or should you splurge and buy something new? New homes are usually more expensive than their resale counterparts, but is it worth it?

Aside from the possibility of being able to customize your new home with the finishes (counters, back-splash, flooring, and sometimes floor plan) and colors you like, buying a new home can actually save you money each month.

According to the National Association of Homebuilders, a home is considered “new construction” if it was built within the last four years. The NAHB recently cited the 2009 American Housing Survey in evaluating what homeowners spent on maintenance expenses per month. The survey found that 26% of all homeowners spent $100 or more per month on home maintenance expenses. But of the homeowners who owned a home classified as “new construction,” only 11% of owners paid this amount. What is a more startling figure? 73% of new homeowners spent less than $25 per month on maintenance.

So what about utilities? According to the survey, all homeowners spent about $.78 per square foot per year on electricity. This means for a 2000 square foot house, $1560 ($130/month) was spent on electricity. However, compare this with “new” homeowners who spent only $.65 per square foot per year ($1,300 per year or $108.33 per month for the same 2,000 square foot house).

A big difference was seen in homes with natural gas. Homeowners on average spent $.53 per square foot per year (for a total of $1,060 per year or $88.33 per month for a 2,000 square foot house) while owners of new homes paid $.38 per square foot per year ($760 per year or $63.33 per month).

And new homes that are ENERGY STAR® certified strive to be 30% more energy efficient than typical new homes. Using our example “new” 2,000 square foot home which could cost $1,300 per year in electricity, a comparable ENERGY STAR® certified home may cost $910 in electricity per year.

There are currently over 550 listings in the Tri-Cities which were built between 2009-2013 (classified as “new construction”). If you are in the market for a new home, an existing lovingly “used” home, or if you want to start completely from scratch and create something all yours, you owe it to yourself to learn your options and determine the best fit for you – and your budget. We can help! Please call Jessica at (509) 947-2230 or Jennifer at (509) 947-5670. We can show you all the costs and benefits of buying a used home versus buying a new home.

Multi-Generational Housing Making a Comeback

Posted on January 4, 2013 by Jennifer

Studies have been done on it. Books have been written about it. And now homes are being built or remodeled to accommodate it. What is it? A return to the multi-generational household!

While the last few decades have seen a decline in multiple generations living under the same roof, that trend tends to be reversing as more and more adult children are moving back home and homeowners are taking in their aging parents.

Sharon Graham Niederhaus, co-author of Together Again – a book about multiple generations living under the same roof, interviewed over 100 families who are living in this manner. She noted, “The balance and proximity and privacy is the key to success,” and indicated that “independence” and “separate facilities” such as a kitchen, bathroom, and separate entrance are essential to living together in harmony.

For hundreds of years it was not uncommon for several generations to live together although the trend towards smaller family units began to take hold after WWII. According to USA Today, the number of multi-generational households in our country is currently the highest since the 1950s. The current trend is directly related to the economy, but many have noted the positive impact of having either their parents or adult children move back home.

PulteGroup Home Index (done by PulteGroup Inc, a national homebuilder) recently did a survey of homeowners with children 16-30. Fourteen percent indicated that they have one adult child who has moved back in with them and a whopping 31% expect that an adult child will return back home in the future. They also interviewed homeowners with living parents and found that 15% indicated a parent was already living with them and 32% expected that at some point they would be living with a parent.

In both cases, the number of multi-generational homes will double in the future if those numbers are correct. So how will current homeowners accommodate the additional people? Of the homeowners who were currently living with a parent or planning on it in the future, 72% planned on either renovating or purchasing a home with a floorplan that would work more effectively for the expanded family. 49% of the homeowners who were either living with adult children or planned to expected to renovate or move.

Builders across the country are beginning to see and provide floorplans which reflect this trend, and Devoted Builders is no exception. In fact, in 2011 the National Association of Homebuilders did a survey of builders and what they expected homebuyers would want in terms of new home amenities by 2015. They determined that 60% of custom new construction homes would have two master bedroom suites by 2015.

Here in the Tri-Cities, we have had several clients in the last few years who have had several generations living in the same household. We have seen adult children living with aging parents so they can help take care of them ensuring a higher quality of life and care. Also recently we have seen younger adults moving into Mom and Dad’s house to either go back to school or save money for a new house or simply due to loss of employment.

In our area most homes with multi-use spaces are in high demand, command higher prices and see a shorter time on market, especially if priced in a price range which is seeing a high turnover.

Our advice? If you are thinking you might need some extra space in the coming years, plan for it now. With interest rates and lower prices, it is a great time to either buy the home you will need in the future, begin planning for a remodel, or even begin thinking of building. We are here to help and advise. Please call Jessica a call at (509) 947-2230 or Jennifer at (509) 947-5670 – we would love to hear about your plans!

SOURCES: