Mid Year (April-September)
Real Estate Review 2020 Tri-Cities Pasco 5109 N Road 68, Ste E Pasco, WA 99301 (509) 547-5542
Walla Walla 10 S 4th Ave Walla Walla, WA 99362 (509) 529-6800
Milton Freewater 18 S Columbia St Milton Freewater, OR 97862 (541) 938-9000
Hermiston 985 N 1st Street Hermiston, OR 97838 (541) 567-8303
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Table of Contents Page
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Heading Pandemic, Election, and the Economy Tri-Cities, Washington Homes for Sale vs Pended vs Sold Average Price per Square Foot Average Days on Market Average Price For Sale and Sold Months of Inventory Absorption Rate Walla Walla, Washington Homes for Sale vs Pended vs Sold Average Price per Square Foot Average Days on Market Average Price For Sale and Sold Months of Inventory Absorption Rate Milton-Freewater, Oregon Homes for Sale vs Pended vs Sold Average Price per Square Foot Average Days on Market Average Price For Sale and Sold Months of Inventory Absorption Rate Hermiston, Oregon Homes for Sale vs Pended vs Sold Average Price per Square Foot Average Days on Market Average Price For Sale and Sold Months of Inventory Absorption Rate Final Thoughts Meet Our Agents
John L. Scott Real Estate Columbia Basin Region These offices are owned and operated independently
Pandemic, Election, and the Economy Pandemic, Election, and the Economy oh my!! In April, I wrote about the pandemic and the national and local real estate markets. The report at that time focused on 2019 and Q1, 2020.
Currently-
I shared comments and opinions (personal and referenced) regarding the state of the national, state, and local economies and how each may be affected as we move through the year. Let us look at what has happened since that report. The following information will cover the middle six months of this year i.e. Q2 and Q3, 2020. NationallyBetween March 19th and April 6th, Forty-One States had issued a Stay Safe, Stay Home, Stay Healthy policy. On June 13, 2020 POTUS Trump issued a National State of Emergency which gave him the tools necessary to support the needs of various states as well as local and national economy. Fairly immediately, we did something that was unprecedented which was to start pumping $2 Trillion into the US economy. I say unprecedented due to the speed the POTUS moved on the situation at hand. While we have done this prior it was always too late (thinking of the great depression and recession) helping create disaster prior to recovery. The major concerns outlined at that time were: 1. National and Worldwide Debt Crisis (massive deft defaults) 2. High Inflation – Loss of purchasing power 3. Higher interest rates 4. Extreme and Persistent Unemployment
1. National and Worldwide Debt Crisis (massive deft defaults) a. It is too soon to predict if a Debt Crisis will occur and to what the impact will be. 2. High Inflation – Loss of purchasing power a. The flow of goods and services has certainly been disrupted however inflation remains at only 1.3% nationally as of August 2020. Or is it? In a Wall Street Journal Article dated September 26th James MacIntosh wrote “The laws of supply and demand explain the divide in inflation between the stuff we want and the stuff we don’t. The outlook for inflation is divided too, between the obvious inflationary pressures and the obvious deflationary pressures, due to overall supply and demand.” He continues in his article that stuff we want is up. For example sitting at home on Zoom in our pajamas the need a new suit or dress (down 17%), makeup (down 3%), hotel room (down 13%) or air ticket (down 23%) are at a recessionary level. Yet our pajamas (men’s nightwear is up 4%), cycling (bikes up 6%), reading for pleasure (books up 4%, newspapers up 5%) and making things (sewing machines and fabric up 9%, cameras up 4%). Medical care is in demand (up 5%), while higher education is much less attractive (tuition fees up 1.3%, the lowest since data started in the late 1970s).
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Pandemic, Election, and the Economy (con’t.) 3. Higher interest rates a. Mortgage interest rates since March 16, 2020 have fallen dramatically as indicated by the table below.
Date Oct. 23, 2020 March 16, 2020 Source: NerdWallet
Average 30-year Fixed APR 2.961% 3.901%
Average 15-year Fixed APR 2.563% 3.299%
Average 5/1 ARM APR 2.939% 3.421%
4. Extreme and Persistent Unemployment a. The national unemployment rate rose from 3.5 percent in February to 4.4 percent in March. b. Total nonfarm payroll employment rose by 661,000 in September, and the unemployment rate declined to 7.9 percent, the U.S. Bureau of Labor Statistics reported today (Oct 2, 2020) January February March April May June July August 2020 3.6 3.5 4.4 14.7 13.3 11.1 10.2 8.4 National Unemployment Rates | 2008 – 2019 Reported by Bureau of Labor Statistics
Sept. 7.9
The down 46.3% in five months. This is an amazing statistic. Many businesses are reporting that it is higher than should be as many employees are not returning to work when called. Oregon and Washington Oregon 1. State and Regional Debt Crisis a. “In August, Oregon lawmakers held a special session to close the then-predicted $1 billion shortfall in the state budget. But, with the new revenue forecast Oregon could end the current two-year budget with a $1.7 billion “cushion.” Reported KTVZ News on September 23rd. b. The same day the Oregon Office of Economic Analysis reported “The economy remains in a Great Recession-sized hole. The strong economic growth of recent months is encouraging. However, it usually takes a year or two for recessionary shock to work through the economy. I will let you decide by reading the official report linked below. https://oregoneconomicanalysis.com/2020/09/23/oregon-economic-and-revenue-forecastseptember-2020/
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Pandemic, Election, and the Economy (con’t.) 2. High Inflation – Loss of purchasing power a. I will explain this as it pertains to Real Estate in the Local Section of my comments. 3. Higher interest rates a. Please refer to #3 above under National and Worldwide Section. 4. Extreme and Persistent Unemployment Oregon 2020 Unemployment
April May June July August 14.9 14.3 11.6 10.4 8.5 National Unemployment Rates | 2008 – 2019 Reported by Bureau of Labor Statistics
September 8.0
Washington 1. State and Regional Debt Crisis a. State spending has increased 70% under Inslee. And we are borrowing close to our limit. Washington has the eighth-highest public debt per capita in the nation. “Spokesman Review” b. Commerce Director Lisa Brown said in a press release. “The depth and complexity of the challenge we’re dealing with demands that we use data in new ways to help every family, every community and every industry get back on their feet, stronger and more resilient than before.” The public “Economic Recovery Dashboard” the agency has created online at https:// www.commerce.wa.gov/datadashboard c. I will refrain from further comments here and refer to the public dashboard above. 2. High Inflation – Loss of purchasing power a. I will explain this as it pertains to Real Estate in the Local Section of my comments. 3. Higher interest rates a. Please refer to #3 above under National and Worldwide Section. 4. Extreme and Persistent Unemployment Washington 2020 Unemployment
April 16.3
May 15.1
June 10
July 10.2
August 8.5
September 7.8
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Pandemic, Election, and the Economy (con’t.) Columbia Basin Region of Oregon and Washington When I wrote about our local economy is April, we were receiving stimulus checks, wondering what the pandemic would bring to our local region. My comments were summarized in the following statement. “Finally, we may risk a dinner out or some other purchases, but we are probably not getting on an airplane to visit relatives on the east coast. Therefore, of all the sectors to start moving us forward in the Columbia Basin Region it would be housing.” I explained why as follows: 1. Our buyers are staying with us during this time where new construction is halted. 2. Our buyers are staying with us on resale of homes for upsizing or downsizing. 3. Listing activity continues as people have opportunities with low interest rates to take advantages of their homeownership goals. 4. Interest Rates are the lowest they have been since the 1930’s 5. Backlog of buyers and little supply. Let me give you some examples. I gave some examples at that time but allow me to bring you up to date with information drawn from between April 1 thru September 30, 2020. Columbia Basin Region We are now an essential business in all areas and open for business. Our four offices; include Hermiston and Milton-Freewater, Oregon as well as the Tri-Cities and Walla Walla, Washington, have recovered nicely as our clients on for both new construction and in the resale market did stick with us as referenced in #1 & 2 above. This evidenced that we averaged approximately 25 transactions per month in Q1, in April we have 11 Transactions and in Q3 we averaged 30 transactions per month. The number of listing opportunities has fallen but with continued to low interest rates we see unprecedented demand. Therefore, it is a sellers’ market. For specifics, by region or office please take a look at the following pages.
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Tri-Cities, Washington John L. Scott Real Estate Columbia Basin Region These offices are owned and operated independently
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Homes for Sale vs. Sold vs. Pended (April 2020-September 2020) Tri-Cities, Washington
It’s a Seller’s Market** Property Sales (Sold) September property sales were 511, 7.8% higher than the 474 sales last month. Current Inventory (For Sale) The total number of homes available this moth is 470. The number of current inventory is down 0.6% compared to the previous month. Property Under Contract (Pending) There was a decrease of 8.3% in the pended properties in September, with 505 properties versus 551 last month. **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.
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Average Price per SQFT (Sold) (April 2020-September 2020) Tri-Cities, Washington
The Average Sold Price per Square Footage is Appreciating** The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The September 2020 Average Sold Price per Square Footage of $175 was up 3.6% from $169 last month. * Based on 6 month trend – Appreciating/Depreciating/Neutral
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Avg Days on Market & Sales Price/ Original List Price % (April 2020-September 2020) Tri-Cities, Washington
The Average Days on Market shows Neutral Trend* The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for September 2020 was 27, up 8% from 25 days last month. The Sold/Original List Price Ratio is Rising** The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 100% is the same as last month. *Based on 6 month trend - Upward/Downward/Neutral **Based on 6 month trend - Rising/Falling/Remains Steady
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Average Price of For Sale and Sold (April 2020-September 2020) Tri-Cities, Washington
The Average For Sale Price is Appreciating** The Average For Sale Price in September was $448,000, up 0.4% from $446,000 last month. The Average Sold Price is Appreciating** The Average Sold Price in September was $366,000, up 4.9% from $349,000 last month. The Average Sold Price is Appreciating** The Median Sold Price in September was $337,000, up 4% from $324,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (April 2020-September 2020) Tri-Cities, Washington
It is a Seller’s market** A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers. Months of Inventory based on Closed Sales The September 2020 Months of Inventory based on Closed Sales of 0.9 was down 10% compared to last month. September 2020 is Seller’s market. Months of Inventory based on Pended Sales The September 2020 Months of Inventory based on Pended Sales of 0.9 was the same compared to last month. September 2020 is Seller’s market. **Buyer’s market: more than 6 months of inventory. Seller’s market: less than 3 months of inventory. Neutral market: 3-6 months of inventory.
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Absorption Rate based on Closed Sales (April 2020-September 2020) Tri-Cities, Washington
It is a Seller’s market** Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month. Absorption Rate based on Closed Sales The September 2020 Absorption Rate based on Closed Sales of 108.7 was up 8.5% compared to last month. Months of Inventory based on Pended Sales The September 2020 Absorption Rate based on Pended Sales of 107.4 was down 7.8% compared to last month. **Buyer’s market: 16.67% and below. Seller’s market: 33.3% and above. Neutral market: 16.67%-33.3%.
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Walla Walla,
Washington John L. Scott Real Estate Columbia Basin Region 12
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Homes for Sale vs. Sold vs. Pended (April 2020-September 2020) Walla Walla, Washington
It’s a Seller’s Market** Property Sales (Sold) September property sales were 72, 1.4% higher than the 71 sales last month. Current Inventory (For Sale) The total number of homes available this month is 85. The number of current inventory is down 16.7% compared to the previous month. Property Under Contract (Pended) There was an increase of 14.7% in the pended properties in September, with 86 properties versus 75 last month. **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.
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Average Price per SQFT (Sold) (April 2020-September 2020) Walla Walla, Washington
The Average Sold Price per Square Footage is Appreciating** The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The September 2020 Average Sold Price per Square Footage of $166 was up 2.5% from $162 last month. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Avg Days on Market & Sales Price/ Original List Price % (April 2020-September 2020) Walla Walla, Washington
The Average Days on Market shows Downward Trend* The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for September 2020 was 78, down 9.3% from 86 days last month. The Sold/Original List Price Ratio is Rising** The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 99% is up 1% from last month. *Based on 6 month trend - Upward/Downward/Neutral **Based on 6 month trend - Rising/Falling/Remains Steady
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Average Price of For Sale and Sold (April 2020-September 2020) Walla Walla, Washington
The Average For Sale Price is Neutral** The Average For Sale Price in September was $444,000, down 7.3% from $479,000 last month. The Average Sold Price is Appreciating** The Average Sold Price in September was $353,000, up 12.1% from $315,000 last month. The Average Sold Price is Appreciating** The Median Sold Price in September was $326,000, up 8.7% from $300,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (April 2020-September 2020) Walla Walla, Washington
It is a Seller’s market** A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers. Months of Inventory based on Closed Sales The September 2020 Months of Inventory based on Closed Sales of 1.2 was down 13.9% compared to last month. September 2020 is Seller’s market. Months of Inventory based on Pended Sales The September 2020 Months of Inventory based on Pended Sales of 1 was down 29.4% compared to last month. September 2020 is Seller’s market. **Buyer’s market: more than 6 months of inventory. Seller’s market: less than 3 months of inventory. Neutral market: 3-6 months of inventory.
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Absorption Rate based on Closed Sales (April 2020-September 2020) Walla Walla, Washington
It is a Seller’s market** Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month. Absorption Rate based on Closed Sales The September 2020 Absorption Rate based on Closed Sales of 84.7 was up 21.7% compared to last month. Months of Inventory based on Pended Sales The September 2020 Absorption Rate based on Pended Sales of 101.2 was up 37.7% compared to last month. **Buyer’s market: 16.67% and below. Seller’s market: 33.3% and above. Neutral market: 16.67%-33.3%.
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Milton
Freewater, Oregon John L. Scott Real Estate Columbia Basin Region These offices are owned and operated independently
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Homes for Sale vs. Sold vs. Pended (April 2020-September 2020) Milton Freewater, Oregon
It’s a Neutral Market** Property Sales (Sold) September property sales were 8, 42.9% lower than the 14 sales last month. Current Inventory (For Sale) The total number of homes available this month is 36. The number of current inventory is up 2.9% compared to the previous month. Property Under Contract (Pended) There was the same number of pended properties in September, 18 properties. **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.
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Average Price per SQFT (Sold) (April 2020-September 2020) Milton Freewater, Oregon
The Average Sold Price per Square Footage is Depreciating** The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The September 2020 Average Sold Price per Square Footage of $102 was down 14.3% from $119 last month. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Avg Days on Market & Sales Price/ Original List Price % (April 2020-September 2020) Milton Freewater, Oregon
The Average Days on Market shows Upward Trend* The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for September 2020 was 193, up 119.3% from 88 days last month. The Sold/Original List Price Ratio Remains Steady** The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 95% is up 3.3% from last month. *Based on 6 month trend - Upward/Downward/Neutral **Based on 6 month trend - Rising/Falling/Remains Steady
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Average Price of For Sale and Sold (April 2020-September 2020) Milton Freewater, Oregon
The Average For Sale Price is Depreciating** The Average For Sale Price in September was $334,000, down 7.2% from $360,000 last month. The Average Sold Price is Appreciating** The Average Sold Price in September was $240,000, up 3.4% from $232,000 last month. The Average Sold Price is Appreciating** The Median Sold Price in September was $240,000, up 17.1% from $205,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (April 2020-September 2020) Milton Freewater, Oregon
It is a Neutral market** A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers. Months of Inventory based on Closed Sales The September 2020 Months of Inventory based on Closed Sales of 4.5 was up 80% compared to last month. September 2020 is Neutral market. Months of Inventory based on Pended Sales The September 2020 Months of Inventory based on Pended Sales of 2 was up 5.1% compared to last month. September 2020 is Seller’s market. **Buyer’s market: more than 6 months of inventory. Seller’s market: less than 3 months of inventory. Neutral market: 3-6 months of inventory.
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Absorption Rate based on Closed Sales (April 2020-September 2020) Milton Freewater, Oregon
It is a Neutral market** Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month. Absorption Rate based on Closed Sales The September 2020 Absorption Rate based on Closed Sales of 22.2 was down 44.5% compared to last month Months of Inventory based on Pended Sales The September 2020 Absorption Rate based on Pended Sales of 50 was down 2.7% compared to last month. **Buyer’s market: 16.67% and below. Seller’s market: 33.3% and above. Neutral market: 16.67%-33.3%.
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Hermiston, Oregon John L. Scott Real Estate Columbia Basin Region 26
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Homes for Sale vs. Sold vs. Pended (April 2020-September 2020) Hermiston, Oregon
It’s a Seller’s Market** Property Sales (Sold) September property sales were 38, 5% lower than the 40 sales last month. Current Inventory (For Sale) The total number of homes available this month is 54. The number of current inventory is up 31.7% compared to the previous month. Property Under Contract (Pended) There was a decrease of 40% in the pended properties in September, with 30 properties versus 50 last month. **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.
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Average Price per SQFT (Sold) (April 2020-September 2020) Hermiston, Oregon
The Average Sold Price per Square Footage is Neutral** The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The September 2020 Average Sold Price per Square Footage of $153 was up 7.7% from $142 last month. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Avg Days on Market & Sales Price/ Original List Price % (April 2020-September 2020) Hermiston, Oregon
The Average Days on Market shows Neutral Trend* The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for September 2020 was 38, down 11.6% from 43 days last month. The Sold/Original List Price Ratio Remains Steady** The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 99% is up 1% from last month. *Based on 6 month trend - Upward/Downward/Neutral **Based on 6 month trend - Rising/Falling/Remains Steady
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Average Price of For Sale and Sold (April 2020-September 2020) Hermiston, Oregon
The Average For Sale Price is Appreciating** The Average For Sale Price in September was $318,000, up 8.5% from $293,000 last month. The Average Sold Price is Neutral** The Average Sold Price in September was $252,000, down 4.2% from $263,000 last month. The Average Sold Price is Appreciating** The Median Sold Price in September was $252,000, up 5.9% from $238,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (April 2020-September 2020) Hermiston, Oregon
It is a Seller’s market** A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers. Months of Inventory based on Closed Sales The September 2020 Months of Inventory based on Closed Sales of 1.4 was up 39% compared to last month. September 2020 is Seller’s market. Months of Inventory based on Pended Sales The September 2020 Months of Inventory based on Pended Sales of 1.8 was up 122% compared to last month. September 2020 is Seller’s market. **Buyer’s market: more than 6 months of inventory. Seller’s market: less than 3 months of inventory. Neutral market: 3-6 months of inventory.
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Absorption Rate based on Closed Sales (April 2020-September 2020) Hermiston, Oregon
It is a Seller’s market** Absorption Rate measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed each month. Absorption Rate based on Closed Sales The September 2020 Absorption Rate based on Closed Sales of 70.4 was down 27.9% compared to last month. Months of Inventory based on Pended Sales The September 2020 Absorption Rate based on Pended Sales of 55.6 was down 54.4% compared to last month. **Buyer’s market: 16.67% and below. Seller’s market: 33.3% and above. Neutral market: 16.67%-33.3%.
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Final Thoughts Final ThoughtsWeek of October 19th, 2020 in Review Continuing Decline in Unemployment The US unemployment rate declined to 7.9 percent in September 2020 from 8.4 percent in the previous month and below market expectations of 8.2 percent, as fewer people were looking for jobs. The labor force dropped by 0.7 million to 160.1 million, with the number of unemployed persons falling by 1.00 million to 12.6 million and employment rising by just 0.3 million to 147.5 million. The jobless rate remained well above prepandemic levels as the recovery from COVID-19 shock showed signs of slowing amid diminishing government stimulus and a spike in new cases
Builder Confidence Reaches Another Record High The National Association of Home Builders (NAHB) Housing Market Index rose from 83 to 85 in October, marking the second month in a row that it has set a record high. This report is a near real-time read on builder confidence, and any reading above 50 on this index that goes from 1 to 100 signals expansion. All three components of the index were positive, with current sales conditions rising 2 points to 90, sales expectations in the next six months up 3 points to 88, and buyer traffic remaining unchanged at 74. It’s important to note that builders have said that they are being challenged by a lack of land, labor, and seriously spiking material costs.
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Final Thoughts Interestingly, new homes that were sold but not started yet are up 69%, which shows how strong the demand has been. September’s increase in both Housing Starts and Building Permits will help to meet some of this demand, but there is so much more demand than supply right now that many more homes are needed. The imbalance will continue to support home prices. The above comments are from a national point of view; however, they reflect what is happening in our region as well. Housing is leading us out of this slow down caused by the pandemic in both single family and multi-family categories. Other Real Estate CategoriesCommercial Sectors Office – in our area it appears that projects started will finish, those that are not started are on hold until we can see more positive energy to move back to an office setting vs. stay at home. This is true except for Medical which leasing and sales are still moving forward. Retail – in our area this type of building is mostly on hold. Our discussion has been in the area of small strip malls with provide services to regional neighborhoods. Industrial – These properties have plenty of capacity and limited interest in leasing or sales. Office Warehouse – This is another bright spot in this category. Particularly with building that offer approximately 1500 sq. ft of office and an additional 5000 sq. ft of warehouse space. Conclusion – We hope that this give you an overview of what is happening in our area in various real estate categories. The key point is housing is driving the real estate market. If you interested in finding out what your home or commercial property is worth, give us a call. Stay Safe and Healthy
Dennis D. Gisi Disclaimer: This information is only the opinion of the author and does not reflect an opinion or research of John L Scott. Past Performance is no guarantee or indication of future results.
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Meet Our Agents WALLA WALLA
Sarah Bergman Chris Brezendine Kenneth Butler
Jarome Hagen
Lewis Key
Adrian Ceja Diane Davis
Robert Gisi
Christina Magnaghi Larena Upton Kerri Walker
TRI-CITIES PASCO
Rhonda Alberts
Randy Blumer
Elsa Carlson
Matthew Flores Wendy de Jesus Gary Graber
Geoff Guidry
Amy Honeywell
Jay Hendler
Jason Huffman
Tina Morales
Emily Nichols
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Enrique Salas
Teri Seidl
Tony Verret
Juan Zuniga
Ruth Lopez
Harnoor Mahal
Scott Saltz Debbi Schmoe
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Meet Our Agents HERMISTON
Don Brewer
Myrna Dorn
Dalia Villegas
Debora Wood
Sheryl Mashos
Carlos Meza
MILTON-FREEWATER
JoLinn Hoover
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Lewis Key
Andrés Salinas Kerri Walker
Phil Otto
Debbi Schmoe
WALLA WALLA 10 S 4th Ave (509) 529-6800
TRI-CITIES PASCO 5109 N Road 68, Ste. E (509) 547-5542
MILTON-FREEWATER 18 S Columbia St (541) 938-9000
HERMISTON 985 N 1st Street (541) 567-8303
Four Offices, One Team