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It's been featured recently in USA Today and on CNN. None of the national doom and gloom real estate news applies here. So what is going on in Yakima, Washington?
Yakima County is a large area and we tend to divide it into Upper Valley and Lower Valley in discussions. I do that when I look at real estate trends, too. I live and work in Yakima, in the Upper Valley, and this is the area I really know and is my focus today. For the last year, I have been tracking pending sales in the area by smaller sub-area and by price point. By doing this, I can instantly see where buyers are buying at any given time. I've been amazed at the number of real estate "experts" quoted in local news media saying that we are in a seller's market. They were so wrong! I track 12 sub-area and 12 price ranges in each, a total of 144 weekly figures, and the majority....by a large margin....are clearly buyer's markets.
A buyers market simply means that there are more homes for sale than are selling, so buyers have the negotiating edge and a great selection of inventory. In a sellers market, there are few homes available giving sellers the negotiating power.
Last week, only 13 of my 144 figures showed a seller advantage. Clearly Yakima is in the midst of a strong buyers market. Typically in a buyer's market home prices decline. Seller's have to price competitively in order to attract a sale and this usually means they are pricing at the low end of the reasonable range. But the really wierd thing happening here is that prices are still increasing. Sellers are still pricing at the high end of reasonable and they often get it. Last year the median home price in Yakima rose almost 18% over the previous year. It's predicted that we'll see a more modest increase of 7-8% this year over last. How is this happening when we have over a years worth of inventory on the market?
I think I can explain a few reasons, but mostly I'm as shocked as everyone else!
Yakima is only about two hours drive from Seattle, so it's an easy drive. Lots of folks are looking at this area for retirement.
Plans are being looked at for Black Rock Reservoir east of Yakima. It would be a huge recreational draw and may be bringing people to the area.
Wine industry is big here, as is all agriculture. People visit for the wine tours and fall in love with the area.
It's an absolutely beautiful area, and sunny most of the time. Western Washington has a cooler, wetter climate and so the dry hot summers are an attraction.
We are close to mountains for the recreation they provide, ski areas and hiking/camping.
Whatever the reasons for the strong market we are experiencing, it's truly happening. It's exciting to be a part of the wierdness! And if you are thinking of buying a home here, this is a fantastic time to do it.
