Kelly Boyle's Wenatchee Real Estate Blog

Wenatchee home sales up 5% in 2011

Kelly Boyle — Tue, 03 Jan 2012 20:39:06 +0000

The results are in and the news is positive (for a change). The number of single family homes that sold in the Wenatchee valley this past year increased 5% over 2010! This is great news for a market that witnessed significant declines over the past four years. The following graph will give you some historical perspective:

Year - # single family homes sold in Wenatchee and East Wenatchee area *

2004 - 850

2005 – 998

2006 - 935

2007 - 852

2008 - 582

2009 - 541

2010 - 461

2011 - 484

The average sale price for the 484 homes sold in 2011 is $236,361. The median sale price is $215,700. The average days on market is 144. On average, sellers accepted offers 8% off their listing price.

In my opinion, the market is beginning to find its “bottom.” Prices will stabilize in the next year or two. If you are looking to sell, pay close attention to the most recent sales in your price range. A common error is to use comparable sales that are too old (6 months or more). The same goes for prospective buyers. Buyers should educate themselves on market values.

Be realistic and you’re sure to have success. Happy New Year!

Kelly Boyle

* Source: North Central Washington MLS

Year-to-date report on single family residential sales in the Wenatchee valley

Kelly Boyle — Wed, 30 Nov 2011 20:54:57 +0000

Here are the numbers for Wenatchee valley single family residential sales year-to-date:

Total sales: 440

High sales price: $800,000

Low sales price: $49,000

Median sales price: $215,950

Average sales price: $234,877

Average price reduction before pending sale: -4.35%

Ratio of sales price to original list price: 92.27%

Average days on market: 142

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Here is a comparison with the same time frame in 2010:

Total sales: 423

High sales price: $1,149,500

Low sales price: $50,000

Median sales price: $225,000

Average sales price: $249,434

Average price reduction before pending sale: -5.59%

Ratio of sales price to original list price: 91.37%

Average days on market: 141

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Analysis

The market is showing signs of improvement with a few more sales this year and a slight change in the ratio of sales price to original list price. On the other hand, the median and average sales price numbers made significant drops. We are still in a buyer’s market and there is no indication it will be changing in 2012. Prices will continue to be soft. Sellers need to price their homes according to the competitive nature of the market. Home prices have retreated back to pre-boom levels of 2005 – 2006. Exactly when the decline will stop is anybody’s guess but my thought is we are getting close (in one or two years). Local demand is going to pick up next year and the relocation market, which has been held back by a soft market nationwide, is going to once again have an effect on local home sales.

If you need a market analysis on your home, give me a call at 860-2040. The analysis is free and there is no obligation.

Home sales surge in Wenatchee valley?

Kelly Boyle — Wed, 02 Nov 2011 20:07:33 +0000

There are 100 single family residential homes under contract today in the Wenatchee valley. This is about 30 to 40 more than the day-to-day average for the past year. Furthermore, there are 436 homes for sale – this is about 50 to 60 less than normal. Could we be in the midst of a minor market surge?

Yes, I think so. What is behind the numbers? In my opinion, impatience tends to heat up the market prior to winter, especially in the NCW region. We have cold winters here and very few people want to move with snow on the ground (usually in December and January).

In addition to the rush to beat the snow, we have been experiencing new record lows for interest rates. This has spurred a lot of the activity as well.

Finally, many sellers take their home off the market this time of year. The homes that got listed in Spring are giving up to enjoy the holidays without a for sale sign in the front yard.

So, demand has gone up about 30 percent and supply has gone down about 10 percent. This may turn out to be one of the best 4th quarters for home sales in several years!

If you are considering listing your home, the next few weeks may be a good time to find a buyer. Before you list, let me add a caution about pricing. First, take a serious look at the comparable sales for your home. You can expect your home to sell for the same or less than the closest comparable. We are still in a “falling price” market so you will have to be extremely competitive.

Do this: put yourself in the buyer’s shoes for just a minute. If you had a huge selection of homes, what would you pay for your home? Don’t just brush this question off. Do some serious market research and be honest with yourself. Otherwise, you may still be on the market when the spring thaw hits.

Have a great November!

Kelly Boyle

Steady, steady, steady…

Kelly Boyle — Mon, 19 Sep 2011 20:42:06 +0000

Steady. That’s the word that keeps coming to my mind when I think about our local market. The supply of homes is steady – between 450 and 500 single family homes for sale in the Wenatchee and East Wenatchee market. The total number of sales year-to-date has remained steady – sales have been right on par with 2009 and 2010 year-to-date numbers (within 1 to 3 percent on any given day in 2011).

We have a “steady” market here in the Wenatchee valley. Warning: don’t confuse a steady market with stable or increasing prices. Prices are still soft and coming down in most price brackets. The supply of homes is still higher than demand. But that isn’t going to last forever. I think it will change by next year.

Is there an urgency to buy yet? Probably not, but if your circumstances are such that you can make a move now, I recommend that you diligently pursue it.

First time buyers – don’t expect prices to come down a whole lot more. There are some really good buys out there and besides, you can get a pretty decent house for the same monthly payment as your rental. Plus you can paint the walls any color you like and have as many pets as you want. Now is the time to make your move. Give me a call (860-2040) or e-mail (info@kellyboyle.net) if you want to check out the market.

All the best,

Kelly Boyle

Market update

Kelly Boyle — Fri, 05 Aug 2011 23:30:51 +0000

The market feels a bit more active this summer but the numbers show we are on the same pace as 2010. Here is a comparison of closed sales* year-to-date:

2010 vs. 2011

282 284

Are you surprised? The numbers show that the demand for homes is steady, steady, steady. If you take the time to read previous posts, you’ll notice this trend has been in motion for the past two years. I am convinced we are back to what is considered a “normal” market for the Wenatchee valley. Prices have come down significantly from the ’06-’07 peak and my guess is they are going to start leveling off next year. It is still a great time to buy here in our area. Don’t be surprised if five years from now we look back and 2011 as the turning point in real estate prices.

If you are in need of real estate advice, please give me a call at 860-2040 or e-mail at info@kellyboyle.net.

All the best,

Kelly Boyle

* Single family residential homes in the Wenatchee, East Wenatchee, and greater Wenatchee valley area (Area 1 and 2 in the North Central Washington MLS).

Why Housing Has a “Buy” Sign on It

Kelly Boyle — Thu, 26 May 2011 14:49:10 +0000

Why Housing Has a “Buy” Sign on It.

Tis the season to buy and sell…

Kelly Boyle — Mon, 23 May 2011 20:35:37 +0000

The home buying and selling activity is in full swing! In my observation, a lot of folks that have been on the sidelines for a very long time are coming out of the woodwork to make offers on homes. In the past month, I have been involved in several multiple offer scenarios. Why is this happening? I think it is a combination of factors. One is the fact that many qualified homebuyers decided to rent for a year or two after they sold their home in 2009 and 2010. They are now getting tired of renting. This is a pretty significant number of people that are considering taking the plunge back into ownership. Another reason is many have been trying to sell their home over the past few years and they have finally had success. These people are now trying to replace their home before they are forced to rent. Their motivation to buy is high, especially if the home they are interested in is in superior condition and priced right for today’s market. The final reason is the influence of the first time homebuyer market. Most first time buyers are realizing that the market has the potential to turn around soon. Interest rates cannot stay this low forever, and the beginning of the next real estate boom is closer now than it was yesterday.

Spring time is the best time of year to sell your home. If you have been considering the possibilities, give me a call and I would be happy to offer a free analysis.

Tis the season!

Best regards,

Kelly Boyle

Spring market update

Kelly Boyle — Thu, 05 May 2011 16:44:54 +0000

There are 442 single family homes on the market as of today. In addition to that, there are 69 homes with a pending sale. The pending sales have been rock solid steady all year but the number of homes on the market has risen about 10%. Not bad really, considering this is spring, the time when most serious buyers and sellers take action.

I am noticing there are more and more qualified, non-contingent buyers out in the marketplace. I was recently involved in two competitive bid situations, one on a home and another on a piece of land. I haven’t seen much of that in the past few years.

Interest rates have come back down again and some of the reports I am reading are predicting even lower rates. Apparently the bond market is in a rally.

If you are a first time buyer or someone not in need of selling a home before buying, now is the time to get busy looking. Take advantage of the incredibly good rates. I am convinced that inflation is on the way which will mean higher rates.

Don’t expect prices to go up by next year. They may stabilize but I seriously doubt the supply will drop far enough for prices to resume their climb. I think we need to see less than 300 homes on the market before we get a price turnaround. That’s not going to happen this year or next, given the economic situation of many people. The market is absorbing the bank owned homes rather quickly so I don’t think we are going to see a local disaster but it is serious enough to keep the supply over 400 homes.

If you need help preparing a real estate strategy for the next few years, call me and I’ll be glad to help.

Thanks,

Kelly Boyle

Wenatchee valley home sales – Q1 analysis and comparison

Kelly Boyle — Thu, 31 Mar 2011 22:20:52 +0000

The first quarter results for Wenatchee valley home sales are in and it looks like we are on the same pace as the previous two years. Here are the total sales for January 1st through March 31st, 2011 along with the first quarter results for the previous seven years.

2011 Q1 – 95

2010 Q1 – 90

2009 Q1 – 97

2008 Q1 – 118

2007 Q1 – 170

2006 Q1 – 194

2005 Q1 – 190

2004 Q1 – 134

My analysis:

The current market is the “new normal” of Wenatchee valley home sales. Obviously, the volume is significantly lower than the 2004-2007 time frame. This is not headline news, but rather something we have been experiencing for awhile. I don’t see evidence that it’s going to change anytime soon. This is the reality of today’s market and we all need to adjust accordingly. Supply continues to outweigh demand. Prices continue to come down. With the economy on the mend, don’t expect prices to go up in the next few years. I think that will happen eventually, but certainly not this year.

If you are a prospective buyer, now may be the time to take action. Interest rates have been at all-time lows and the indicators warn of higher rates. Some are waiting for the market to come down further. If you have low motivation, by all means wait it out. Prices will continue to fall another 5 – 10% over the next two years. But if the urgency level is medium to high, I say make your move this year. Yes, prices may come down a little more, but if you own the home for five years or more, I don’t think it will make any difference.

For sellers, be sure to look at the most recent comparable sales and price your home accordingly. Don’t waste time by adding 10 to 20% to the fair market value. If you really want to sell, price it 5% above fair market value and be ready to negotiate. Buyers want you to come down in price and pay their closing costs.

If you owe more than you can sell your home for, please give me a call and I can explain your options. If national statistics are any indication, about 25% of homeowners are now in this situation. I think it may be lower for our area but have no way of proving that.

All in all, I am glad to see the sales volume maintaining a steady pace. The market is not as bad as I initially feared it would be. We live in one of the most beautiful parts of the country and given another year or two I expect the sales volume to pick up again and for prices to stabilize and resume their upward ascent. My educated guess is that there are hundreds of potential buyers that are itching for an opportunity to move to the Wenatchee valley. If the market heats up again, look out, we are in for another boom.

Please call me if you want a personalized analysis – 860-2040.

Best regards,

Kelly Boyle

How far have prices come down?

Kelly Boyle — Mon, 14 Mar 2011 22:37:35 +0000

I often get asked how far prices have come down in the Wenatchee valley. Here are some examples:

Address Sale price Sale date Previous sale price

525 S. Mason $180,000 2/23/11 $212,500 in 2005

465 N. Keller $200,000 2/25/11 $234,900 in 2008

505 S. Franklin $115,000 2/2/11 $174,000 in 2006

1016 Fuller $126,000 2/12/11 $179,900 in 2006

2311 Spring Wheat $219,000 12/15/10 $275,000 in 2007

2443 Summit Dr $199,000 3/09/11 $272,900 in 2007

364 Whitebirch Pl $198,400 1/28/11 $219,450 in 2006