Tri-Cities Real Estate Market Update, October

Posted on November 18, 2013 by Jessica

The September and October Tri-Cities real estate market information is hot off the presses! This has been another two months of modest growth over the previous year.

The below chart shows the data comparing September of 2012 and September of 2013.

sepmarketcomp01

The October data is also newly-available:

octmarketcomp01

According to the National Association of REALTORS®, the Kennewick-Richland-Pasco metro area is seeing a upward trend in new home construction with 1,661 current building permits through June 2013. This is 36.7% above the long-term average of 1,215 permits.

Did you know that the Tri-Cities is only behind Seattle and Portland for the number of building permits in Washington and Oregon? In August, 2013, Seattle issued 6300 permits, Portland issued 3970 permits and Kennewick-Richland-Pasco issued 1000 permits. New construction is strong in our area.

If you are interested in hearing more about our market, please give us a call: Jessica at (509) 947-2230 or Jennifer at (509) 947-5670.

Sources

What Do Buyers Want?

Posted on May 2, 2013 by Jessica

NAHB recently released their in-depth study, What Home Buyers Really Want which provides an overview of the most important features buyers are looking for in a home.

Nationally 65% of home buyers indicated their first priority in buying a home is to make sure the “living space and number of rooms” met their needs.

Three of the ten most-wanted features in a home were associated with energy efficiency:

94% wanted ENERGY STAR rated appliances (with 36% viewing these as a “must have”)
91% wanted an ENERGY STAR rating for entire home (with 28% rating this as a “must have”)
89% wanted ENERGY STAR rated windows (with 35% rating this as a “must have”)

Organization is also very important, with 93% of buyers wanting a separate laundry room, 90% wanting a linen closet in the bathroom, and 85% wanting a walk-in kitchen pantry. Garage storage space also scored high nationally.

In the Tri-Cities, we are also taking note of that trend, with buyers asking for larger garages and/or a separate shop for “toys”. “Smart storage” is the trend here locally. This includes everything from closet organization systems to garage organization systems and more!

Additionally, having a full tub/shower option in the master bathroom is important nationally.

Interestingly, nationally buyers are shying away from two-story spaces such as in the living room or family room because they are being viewed as “energy inefficient”. In fact, locally, we are seeing very high demand for single-story homes.

Locally, we are also seeing a high demand for “low maintenance” exterior and landscaping. Stucco or Hardiplank siding along with native landscaping is what buyers are attracted to. People are very busy and our cold winters and windy conditions can wreak havoc on wood exteriors or elaborate landscaping.

Finally, one trend we are seeing locally is buyers wanting some kind of “wow” factor in a home. Something that makes the property stand out. That might be a view, a backyard for entertaining, or an entry with punch. Also, trendy contemporary finishes such as concrete and glass are in-demand at the moment.

If you are thinking about moving or making some updates to your property, keep these “buyer must-haves” in mind and think about what you really want – or need! – in your place to call it home. Please call Jennifer at (509) 947-5670 or Jessica at (509) 947-2230. We can take a look at your “must have” list and help you determine the best way to get there!

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.