Tri-Cities Real Estate Review 2019 John L. Scott Real Estate Tri-Cities 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Opening Statements Homes for Sale v. Sold v. Pended Average Price per Sq.Ft. Average Days on Market Average Price For Sale and Sold Months of Inventory State of the Market (TRIDEC) Population (2018) Future Population of Tri-Cities Unemployment Rate Labor Force Jobs in Tri-Cities Wages in Tri-Cities 2020 Outlook Looking Back
John L. Scott Real Estate 5109 N Road 68 | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
Opening Statements Looking BackThe winter and spring of 2019 was one of the coldest and snowiest we have had in quite a while. The period between January 1st and April 30th was one of the slowest we have had in our 9 years of operation. However, by the end of the year we achieved a record in every office within our South Columbia Basin Region i.e. Tri-Cities and Walla Walla, WA as well as Milton-Freewater and Hermiston, OR. Together we achieved a total 387 transactions totaling $99.5 Million in sales volume. A record year for us and we are proud of the team and the efforts of all to put this together. The following charts and tables indicate where we were in 2019. The highlights are: 1. The Homes for Sale vs. Sold chart indicates we had a back log of buyers coming out of the winter months which continues to create a seller’s market. 2. Buyers are continuing to find it difficult to find a home of their choosing in any price range. 3. There is no negotiation as indicated by the Sales Price/Listing Price (SP/LP) ratio which stands at 99%. 4. At the end of 2019 we only had a 45-day supply of homes in the Tri-Cities Metropolitan Statistical Area (MSA.) The good news is while prices were increasing through the heavy demand summer months the average and median sold prices from January through December were stable. The second half of the report was from the 2019 Tri-Cities Economic Development Forum held in February of this year. The pages are reprinted with permission from Ajsa Suljic, Regional Economist for the Employment Security Department of Washington. I hope you find the content informative and valuable.
Dennis Gisi,
BrokerÂŽ/Owner (509) 520-0505 DGisi@JohnLScott.com John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Homes for Sale vs. Sold vs. Pended (December 2018-February 2020)
Curnt vs. Prev Month
Curnt vs. Same Month 1 Yr Ago
Curnt vs. Same Qtr 1 Yr Ago
TODAY STATS
Feb. 19
% Change
Dec. 19 to Feb. 20
Dec. 18 to Feb. 19
% Change
3/1/20 3/7/20
2/1/20 2/7/20
% Change
380
395
-3.8%
380
395
-3.8%
397
419
-5.3%
-5.4%
245
211
16.1%
823
659
24.9%
35
57
-38.6%
27.4%
363
209
73.7%
848
696
21.8%
75
87
-13.8%
% Feb. 20 Change
Feb. 20
Jan. 20
For Sale
380
443
-14.2%
Sold
245
259
Pended
363
285
February 2020 is a Seller’s market** Home For Sale in February 2020 is 380 units. It is down 14.2% compared to last month and down 3.8% compared to last year. Home Closed in February 2020 is 245 units. It is down 5.4% compared to last month and up 16.1% compared to last year. Home Placed under Contract in February 2020 is 363 units. It is up 27.4% compared to last month and up 73.7% compared to last year. **Buyer’s market: more than 6 months of inventory based on closed sales. Seller’s market: less than 3 months of inventory based on closed sales. Neutral market: 3-6 months of inventory based on closed sales.
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Average Price per SQFT (Sold) December 2018-February 2020
Curnt vs. Prev Month
Avg. Sq. Ft. Price (Sold)
Curnt vs. Same Month 1 Year Ago
Curnt vs. Same Qtr 1 Year Ago
TODAY STATS
Feb. 20
Jan. 20
% Change
Feb. 20
Feb. 19
% Change
Dec. 19 to Feb. 20
Dec. 18 to Feb. 19
% Change
3/1/20 3/7/20
2/1/20 2/7/20
% Change
163
159
2.5%
163
148
10.1%
160.58
148
8.5%
168
168
0%
February 2020 Average Sold Price per Square Footage is Neutral** Average Sold Price per Square Footage in February 2020 is $163. It is up 2.5% compared to lasat month and up 10.1% compared to last year. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Avg Days on Market & Sales Price/ Original List Price % (December 2018-February 2020)
Curnt vs. Prev Month
Curnt vs. Same Month 1 Year Ago
Jan. 20
Avg Days on Market
39
41
-4.9%
Sold/ Orig LP Diff. %
99
99
0%
TODAY STATS
Feb. 19
% Change
Dec. 19 to Feb. 20
Dec. 18 to Feb. 19
% Change
3/1/20 3/7/20
39
53
-26.4%
40
47
-14.9%
46
41
12.2%
99
98
1%
99
98
1%
100
99
1%
% Feb. 20 Change
Feb. 20
Curnt vs. Same Qtr 1 Year Ago
2/1/20 % Change 2/7/20
February 2020 Average Days on Market trend Remains Steady** Aveage Days on Market in February 2020 is 39. It is down 4.9% compared to last month and down 26.4% compared to last year. February 2020 Sold/Original List Price Ratio is Rising** Sold/Original List Price % in February is 99%. It is the same as compared to last month and up 1% compared to last year. ** Based on 6 month trend - Rising/Falling/Remains Steady
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Average Price of For Sale and Sold (December 2018-February 2020)
Curnt vs. Prev Month
Curnt vs. Same Month 1 Year Ago
Jan. 20
Avg. Active Price
407
401
1.5%
Avg. Sold Price
327
321
1.9%
TODAY STATS
Feb. 19
% Change
Dec. 19 to Feb. 20
Dec. 18 to Feb. 19
% Change
3/1/20 3/7/20
407
412
-1.2%
398
401
-0.7%
412
397
3.8%
327
321
1.9%
325
315
3.2%
325
337
-3.6%
% Feb. 20 Change
Feb. 20
Curnt vs. Same Qtr 1 Year Ago
2/1/20 % Change 2/7/20
February 2020 Average For Sale Price is Appreciating** Aveage For Sale Price (in thousand) in February 2020 is $407. It is up 1.5% compared to last month and down 1.2% compared to last year. February 2020 Average Sold Price is Neutral** Aveage Sold Price (in thousand) in February 2020 is $327. It is up 1.9% compared to last month and up 1.9% compared to last year. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Months of Inventory Based on Closed Sales (December 2018-February 2020)
Curnt vs. Prev Month
Months of Inventory (Closed Sales)
Curnt vs. Same Month 1 Year Ago
Curnt vs. Same Qtr 1 Year Ago
TODAY STATS
Feb. 20
Jan. 20
% Change
Feb. 20
Feb. 19
% Change
Dec. 19 to Feb. 20
Dec. 18 to Feb. 19
% Change
3/1/20 3/7/20
2/1/20 2/7/20
% Change
1.6
1.7
-5.8%
1.6
1.9
-16%
1.6
2
-19.9%
11.3
7.4
53.1%
February 2020 is a Seller’s market** Months of Inventory based on Closed Sales in February 2020 is 1.6. It is down 5.8% compared to last month and down 16% compared to last year. **Buyer’s market: more than 6 months of inventory based on closed sales. Seller’s market: less than 3 months of inventory based on closed sales. Neutral market: 3-6 months of inventory based on closed sales.
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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State of the Labor Market: Kennewick-Pasco-Richland Metro Area (Benton and Franklin Counties)
21st Annual Tri-Cities Regional Economic Outlook Tri-City Development Council (TRIDEC) Presented by Ajsa Suljic, Regional Labor Economist
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Population: How many people? 296,200 in 2018
21st Annual Tri-Cities Regional Economic Outlook Tri-City Development Council (TRIDEC)
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Future Popluation of Tri-Cities • Benton-Franklin population has forecast to grow at a pace of around 2.0% a year for the next 10 years. • By 2028, the region is expected to be home to about 350,000 people. • Continuing to be one of the fastest population growing regions in the state.
Source: US Census Bureau-American Community Survey 2018, WA Office of Financial Management 2018 John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Unemployment Rate
Source: Bureau of Labor Statistics- LAUS 2019 John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Unemployment Rate
Source: Bureau of Labor Statistics- LAUS 2019 John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Labor Force
Source: Bureau of Labor Statistics- LAUS 2019 John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Jobs: How many JOBS and what KIND of jobs? Total covered employment at 124,512 in 2018 Top employing industries are: • Government (public education & healthcare) 15.7% • Healthcare and social assistance (private) 12.2% • Agriculture 10.7% • Retail trade 10.6% • Administrative and waste service 9.0% • Accommodation and food services 7.9% • Professional and technical services 7.3% • Construction 7.1% • Manufacturing 6.5%
Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics/QCEW John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Wages: What do jobs in the area PAY? • Total 2018 annual payroll is $6,427,189,724 (6.1% oty) • Average annual pay for all industries is $51,619 (3.4% oty)
Source: Employment Security Department/WITS; U.S. Bureau of Labor Statistics/QCEW John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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2020 Outlook • Industry growth and stability • Healthcare, Leisure and Hospitality, Educational Services, and Construction • Population growth and demand for local products and services to continue • Workforce Supply and Demand development
Stability- is most likely Growth- is very possible Recession- not in short term **Please note this information was received before the Coronavirus Pandemic**
John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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Final Thoughts Looking forward – I have been getting asked in my travels as to when we will feel the affects of a recession. I have been telling people a recession is not imminent as we have jobs. Currently, The Tri-Cities has approximately 2,750 jobs* available in all aspects of industry. I was pleased to hear that Ajsa Suljic agreed with me, when she stated during the Economic Forum in February, “If we turned everything off today, the momentum of this economy would carry us for approximately three more years.” Obviously, this statement was made prior to the Coronavirus Pandemic. We should have some light on how this is going to change our economy in 2020 at my next writing due out at the end of April. For now, our John L Scott Columbia Basin Region Team wishes you safety and good health during these historical and trying times. *According to information provided by Indeed.com March 2020
Dennis Gisi,
Broker®/Owner (509) 520-0505 DGisi@JohnLScott.com John L. Scott Real Estate 5109 N Road 68 Ste. E | Pasco, WA 99301 (509) 547-5542 This office is independently owned and operated
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