Wenatchee, WA

The resiliency of the Wenatchee real estate market through what the media reports as a national crisis in the real estate industry is pretty amazing. I am not denying there is a real estate crisis, but I am amazed at how well Wenatchee has been able to weather this unprecedented storm.

Have you looked at the Wenatchee area housing sales statistics lately? According to the latest report out of Pacific Appraisal Associates (our area statitics gurus) in October sales numbers are down 27% BUT the average price has not decreased a single percentage point over the same period last year. I find this statistic alone amazing considering home prices are reportedly down in price by as much as 30% (or more) in some markets across the U.S.

While the "average" sales price is not showing a decrease, the "median" price does show a 4% decrease. The two are sometimes confused but they are NOT the same.

The "average" price is ALL the sale prices added together then divided by the number of sales for... well, an average.

The "median" price is the price point at which there are an equal number of homes sold at a higher price and a lower price.

For example, the "average" price in the Wenatchee MLS market area is shown at $283,358. So when ALL the sales were added up and the number of sales was added up... the number of sales was divided into the total $$$$ value of the sales to reach an average.

The "median" price is showing as $239,900. This means an equal number of homes were sold for less than $239,900 as more than $239,900.

For quite some time, the "average" and "median" home prices in Wenatchee were running very close. There is over a $43,000 spread now. What does this mean if our prices haven't really dropped?

To me, the explanation is in that people (and investors) are out buying the bargains... those in the lower price ranges where the "bargain prices" are obvious. The truly serious sellers are pricing their homes very competitively. We are not seeing many high end sales, which brings the median price down. This also holds the average price down.

Statistics can be deceiving. Theoretically, the prices could be going up while the "median" price declines. This is accomplished by more low end homes selling than high end homes.

If you actually go in and look at the SNAPSHOT report, you will see there were more homes sold in the $150,000 - $250,000 price range than all of the homes in every other higher price range put together. There were 36 homes sold in the $150,000 - $250,000 price range in September compared to 32 in the $250,000 and up price range. 13 of those were in the $250,000 - $300,000 price range. It looks like high end homes have pretty well stalled, sucking the median price down.

What we are seeing in our business at Willinger Real Estate is pent up demand building. We have a number of clients who want to buy but cannot because they have homes in other areas (like Iowa or Arizona or California) to sell before they can buy. We also have people wanting to buy but the financing environment is so unstable right now they cannot. This is creating high rent demand (and demand for lease/purchases), so investment properties are a great thing to consider right now.

Blah, blah, blah. My point of all this is... it's totally amazing to me that Wenatchee home values have been able to maintain the strength they have considering what's happening acrosss the country. I've said over and over, we are blessed with a good strong (and mighty diverse) economy AND a geographic location and natural resources that draws people from far and wide.

Now is a great time to buy in Wenatchee. If we can weather the storm as we have, what is going to happen when the market rebounds? I continue to see good things ahead for Wenatchee.

Now is the time to buy real estate in Wenatchee. Don't say I didn't warn you.

Happy Holidays!









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When you start looking for a home, it’s important to consider factors outside the home that can enhance or detract from your lifestyle. Here are some things to consider:

* Is there a playground, pool or park nearby? Are the fees affordable?

* How close is the home to a hospital, police or fire department?

* How big is the garage or driveway? Will there be enough parking for guests when you entertain?

* Can you live with area commute times, traffic jams, gas prices and public transportation access?

Choosing a home that fits your needs, your budget and your lifestyle isn’t hard when you are realistic and understand what's truly important to you. While you may need to compromise on some items, there are plenty of homes available that can fit your needs and make you happy.

When you're ready to buy your next home, we'll be happy to help you. Please visit our website for buying and selling tips, MLS property searches, town and community information and more at www.WenatcheeHouses.com.

Warm regards,

The Davidson Team

"Start Packing Today!"

The September residential sales numbers in Wenatchee, WA show surprising stablility in the market where both average sale price and median sale price have held steady since about February. Sales volume, while down about 30% from last year has also remained relatively stable.

However, inventory continues to climb with listings outpacing sales and has increased roughly 25% since February.

To see the whole report, go to the NCW Real Estate Blog here:

Wenatchee Residential Prices are Still Stable in September

Chelan County and the City of Wenatchee together are inviting citizens interested in municipal sewer in the Olds Station and Sunnyslope areas to a public open house. Both the City and County have information to share and will be available for questions regarding sewer service north of the Wenatchee River.

For the location and time for the open house, just go to the NCW Real Estate Blog:

Sewer in Sunnyslope and Olds Station?

FALL MARKET UPDATE

“If you're not confused, you're not paying attention." Tom Peters

Dear Friends,

If you have been following the events over the past few weeks, the above quote rings true. Economically, we are moving into unprecedented territory and it is near impossible to predict what will happen next.

The confusion is accompanied by fear and uncertainty. We are worried for our personal and national well being. Will we have a prolonged recession or maybe a depression? Will the government be successful in bailing us out of this mess?

I will leave the answers to the experts! In my opinion, democracy and free market capitalism are the best political/economic systems created by man and I have faith that recovery and prosperity are only a matter of time. In other words, better days are yet to come!

How does this turmoil affect the local real estate market? Well, year-to-date sales (vs. last year) are down by 30%, listings are up by 50%, and prices have dropped about 10%. The market is definitely slower and prices are falling. Here’s the deal: Home prices appreciated a whopping 60% during the years 2004–2007! The average sale price went from $173,508 to $272,256. That pace was simply unsustainable.

Will prices continue to fall? An important indicator of future price movement is the affordability index (ratio of family income to home prices). Ours is one of the worst in the state. According to this important statistic, it appears the buyer’s market will continue as prices slowly move back within reach of the average “local” family. My guess is that this will take a year or more.

Bottom line: In spite of negative headlines and affordability problems, buying opportunities are getting better every day, especially for the “first-time” and “move-up” buyer. Don’t let irrational fear stop you! Heed the words of Warren Buffet: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

If you are pondering the pros and cons of buying or selling soon, give me a call. I am never too busy to help you or your referrals!