First Quarter 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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Heading Covid-19 vs. Real Estate Market 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
Covid-19 vs 2020 Real Estate Market Is Covid- 19 and the Real Estate or Financial Outcry warranted? Only history can tell us with some certainty whether all this debate on stimulus money will lead to recovery or recession, unemployment for years to come, debt burden for generations, and/or high inflation. However, I would like to share an opinion as I see it in our little microcosm of the world. There are two things that are the hottest topics in the news so far this year. The Pandemic and how much is it going to cost to financially recover. The amounts predicted are all over the map; but, let us talk about what we know and offer some perspective. NationallyPOTUS Trump issued a National State of Emergency on March 13, 2020. (Whitehouse.Gov) This declaration
gave him the tools and latitude he needed to support the various states, local, and national economy in a way that would be prudent no matter what turn this pandemic would take. POTUS Trump did NOT and still has not declared a national lock down or quarantine. He cannot and does not have the constitutional power to do so, according to legal experts. NPR asked the question last week “Could the president order a national lockdown or place states under quarantine? Legal experts say, no.” That hasn’t stopped rumors from spreading that the country is under a lockdown, something the Federal Emergency Management Agency has debunked on its website. Forty-one states have issued a Stay Safe, Stay Home, Stay Healthy policy.
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Covid-19 vs 2020 Real Estate Market (con’t) With all the debate, I find it interesting that POTUS Trump declared a national emergency a week prior to the first state, California, declared a stay home policy, but I digress. As a nation POTUS Trump has committed $2 Trillion to the US economy to limit the financial impact of Stay Safe, Stay Home, Stay Healthy. How much money is that, really? According to the Congressional Budget Office it is approximately 54% of one year’s revenue. Congressional Budget Office Fiscal Year FY 2021 FY 2020 FY 2019
Revenue $3.86 trillion (estimated) $3.71 trillion (estimated) $3.46 trillion (actual)
Not to downplay this really, but that is like buying a $50,000 automobile on a $100,000 household income budget. Fortune Magazine reported “the coronavirus pandemic’s devastation became more evident Thursday with more than 5.2 million workers added to the tally of the unemployed. In the last four weeks, the number of unemployment claims has reached 22 million — roughly the net number of jobs created in a nine-and-a-half-year stretch that began after the last recession and ended with the pandemic’s arrival.” It is almost a universal belief that we do not know how deep the economic downturn will be as it depends on how long it will last. There are many many potential pitfalls that could occur on the other side of the Pandemic and Financial Crisis. For Example: 1. 2. 3. 4.
National and World – Wide Debt Crisis (massive debt default) High Inflation – Loss of purchasing power. Higher interest rates Extreme Unemployment
I will not take the time to explain the details of each above but list them here to point out the economic engine has sputtered and to get it back on track is not without severity of risk.
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Covid-19 vs 2020 Real Estate Market (con’t) Locally – We have started to receive our stimulus checks, business are also beginning to receive their Payroll Protection Plan funds through the Small Business Administration, applications for self – employed or independent contractor unemployment benefits began getting processed April 20th. What the future may hold? What it may bring to the Columbia Basin region as our little microcosm of the world? It is my opinion that we will be led out of this recession by various sectors of the economy regaining momentum and doing well. Let me describe a scenario: We may or may not be essential employees that now are unemployed. We are social distancing and waiting for this to be over. We are “working” at learning more about loan forbearance on our existing loans and other consumer protection changes to help us survive until that phone call that says, “You can come back to work in the morning”. The first few checks are to pay our bills (house, car, utilities etc.) and catch up. The next few checks are to put us back on our feet with a little savings so we have some protection if there is a second wave. Finally, we may risk a dinner out or some other purchases, but we are probably not getting on an airplane and going to visit the relatives on the east coast. Therefore, of all the sectors to start moving us forward in the Columbia Basin Region it is housing. Why? 1. 2. 3. 4. 5.
Our buyers are staying with us during this time where new construction is halted. Our buyers are staying with us on resale of homes for upsizing or downsizing. Listing activity continues as people have opportunities with low interest rates to take advantage of our home ownership goals. Interest Rates are the lowest since the 1930’s in some cases. Backlog of Buyers and little supply. Let me give you some examples:
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Covid-19 vs 2020 Real Estate Market (con’t) Pasco
Price Range $200,001-$250,000 $250,001-$300,000 $300,001-$350,000
Avg Monthly Sales 18.0 33.0 16.7
Avg Monthly Listings 13 12 13
Shortage -27.8% (8) -63.6% (19) -22.0% (7)
Kennewick, Richland, and West Richland are relatively the same. Walla Walla $200,001-$350,000 Milton Freewater, OR
25.1
19
-23.9% (6)
$200,001-$350,000 Hermiston
2
6
200% 4
$200,001-$350,000
16
35
119% 19
The above data is from the respective multiple listing services. The Tri Cities and Walla Walla has a severe shortage as indicated and homes in the price range are usually sold very quickly or in a multiple offer situation. Milton Freewater and Hermiston are a slightly different story but just because the numbers are in the black does not mean a slow market. All this means is there is a 60 days’ supply which is a robust scenario. The federal Department of Housing and Urban Development (HUD) defines an “affordable dwelling” as one that a household can obtain for 30 percent or less of its income. What this means in our footprint for example follows: Milton Freewater, OR where the median household income is $41,354* per year. Therefore, by formula payments cannot exceed $41,354 x 30% = $12,406. This equals a home price of $165,400 based on an FHA Loan with 3.5% down at today’s rate of 3.875% fixed for 30 years. Currently, there are NO homes for sale in this price range while area Realtors typically sell 3 per month. **
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Covid-19 vs 2020 Real Estate Market (con’t) Hermiston, OR where the median household income is $51,923* per year. Therefore, by formula payments cannot exceed $51,923 x 30% = $15,577. This equals a home price of $223,250 based on an FHA Loan with 3.5% down at today’s rate of 3.875% fixed for 30 years. Currently, there is only 1 home for sale in this price range while area Realtors typically sell 2 per month. ** Walla Walla, WA where the median household income is $56,533* per year. Therefore, by formula payments cannot exceed $56,533 x 30% = $16,960. This equals a home price of $249,000 based on an FHA Loan with 3.5% down at today’s rate of 3.875% fixed for 30 years. Currently, there is only 2 homes for sale in this price range while area Realtors typically sell 18 per month. ** Tri Cities, WA where the median household income is $72,733* per year. Therefore, by formula payments cannot exceed $72,733 x 30% = $21,820. This equals a home price of $338,275 based on an FHA Loan with 3.5% down at today’s rate of 3.875% fixed for 30 years. Currently, there are only 39 home for sale in this price range while area Realtors typically sell 33 per month. ** 6.
Jobs- We have jobs in our footprint. a. Milton Freewater, OR i. The number of employment opportunities listed on Monster.com are included in the comments for Walla Walla, WA below. b. Hermiston, OR i. Currently there are 341 employment opportunities listed on Monster.com. These jobs include doctors, sales managers, truck drivers, RN’s, data center technicians, hospital nutritionist, teachers, etc. Pretty well-rounded opportunities. c. Walla Walla, WA i. Currently there are 492 employment opportunities listed on Monster.com. These jobs include agronomist, sales managers, truck drivers, RN’s, teachers, project engineer, physical therapist, retail store assistant etc. Pretty well-rounded opportunities. d. Tri Cities, WA i. Currently there are 1964 employment opportunities listed on Monster.com. These jobs include doctors, sales managers, truck drivers, RN’s, Director of Nursing, teachers, etc. Pretty well-rounded opportunities.
Add that we are the local, state, and federal government center for this area, with essential and nonessential jobs at Hanford, Prisons, Social Security, VA Hospital, US Army Corp of Engineers, US Forest Service, employment on the dams and more. We have a very stable and growth area.
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Tri-Cities, Washington John L. Scott Real Estate Columbia Basin Region 6
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Homes for Sale vs. Sold vs. Pended (January 2019-March 2020) Tri-Cities, Washington
It’s a Seller’s Market** Property Sales (Sold): March property sales were 356, up 33.3% from 267 in March of 2019 and 17.5% higher than the 303 sales in February. Current Inventory (For Sale): Versus last year, the total number of properties available this month is higher by 25 units of 5.8%. This year’s bigger inventory means that buyers who waited to buy may have a larger selection to choose from. The number of current inventory is up 0.4% compared to last month. Property Under Contract (Pending): There was an decrease of 6.4% in the pended properties in March, with 380 properties versus 406 last month. This month’s pended property sales were 0.8% higher than at this time 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.
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Average Price per SQFT (Sold) (January 2019 - March 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 March 2020 Average Sold Price per Square Footage of $167 was up 1.8% from $164 last month and up 9.9% from $152 in March of last year. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Avg Days on Market & Sales Price/ Original List Price % (January 2019 - March 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 tends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards a Seller’s market. The DOM for March 2020 was 40, down 4.8% from 42 days last month and down 11.1% from 45 days in March of 2019. 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 up 1% from last month and up 1% in March of last year. *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 (January 2019 - March 2020) Tri-Cities, Washington
The Average For Sale Price is Appreciating** The Aveage For Sale Price in March 2020 was $421,000, up 4% from $405,000 in March 2019 and up 1.9% from $413,000 last month. The Average Sold Price is Neutral** The Average Sold Price in March was $344,000, up 8.5% from $317,000 in March of 2019 and up 3.9% from $331,000 last month. The Average Sold Price is Appreciating** The Median Sold Price in March was $321,000, up 8.8% from $295,000 in March of 2019 and up 1.9% from $315,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (January 2019 - March 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 March 2020 Months of Inventory based on Closed Sales of 1.3 was decreased by 18.5% compared to last year and down 13.3% compared to last month. March 2020 is a Seller’s market. Months of Inventory based on Pended Sales The March 2020 Months of Inventory based on Pended Sales of 1.2 was increased by 8.7% compared to last year and up 8.9% compared to last month. March 2020 is a 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 (January 2019 - March 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 March 2020 Absorption Rate based on Closed Sales of 77.7 was increased by 25.9% compared to last year and up 17% compared to last month. Months of Inventory based on Pended Sales The March 2020 Absorption Rate based on Pended Sales of 83 was decreased by 4.7% compared to last year and up 6.7% 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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Walla Walla,
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 (January 2019-March 2020) Walla Walla, Washington
It’s a Seller’s Market** Property Sales (Sold): March property sales were 60, up 25% from 48 in March of 2019 and 36.4% higher than the 44 sales in February. Current Inventory (For Sale): Versus last year, the total number of properties available this month is lower by 35 units of 22%. This year’s smaller inventory means that buyers who waited to buy may have a smaller selection to choose from. The number of current inventory is up 8.8% compared to last month. Property Under Contract (Pending): There was an increase of 25.9% in the pended properties in March, with 68 properties versus 54 last month. This month’s pended property sales were 25.9% higher than at this time 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.
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Average Price per SQFT (Sold) (January 2019 - March 2020) Walla Walla, Washington
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 March 2020 Average Sold Price per Square Footage of $153 was up 7.7% from $142 last month and up 18.6% from $129 in March of last year. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Avg Days on Market & Sales Price/ Original List Price % (January 2019 - March 2020) Walla Walla, 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 tends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards a Seller’s market. The DOM for March 2020 was 119, down 8.5% from 130 days last month and down 2.5% from 122 days in March of 2019. 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 2.2% from last month and the same as in March of last year. *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 (January 2019 - March 2020) Walla Walla, Washington
The Average For Sale Price is Neutral** The Aveage For Sale Price in March 2020 was $398,000, up 9% from $365,000 in March 2019 and down 1.5% from $404,000 last month. The Average Sold Price is Appreciating** The Average Sold Price in March was $343,000, up 37.2% from $250,000 in March of 2019 and up 5.9% from $324,000 last month. The Average Sold Price is Appreciating** The Median Sold Price in March was $291,000, up 21.3% from $240,000 in March of 2019 and up 9% from $267,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (January 2019 - March 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 March 2020 Months of Inventory based on Closed Sales of 2.1 was decreased by 36.2% compared to last year and down 19.3% compared to last month. March 2020 is a Seller’s market. Months of Inventory based on Pended Sales The March 2020 Months of Inventory based on Pended Sales of 1.8 was decreased by 37.4% compared to last year and down 14.2% compared to last month. March 2020 is a 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 (January 2019 - March 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 March 2020 Absorption Rate based on Closed Sales of 48.4 was increased by 60.3% compared to last year and up 25.4% compared to last month. Months of Inventory based on Pended Sales The March 2020 Absorption Rate based on Pended Sales of 54.8 was increased by 61.2% compared to last year and up 15.6% 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 20
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Homes for Sale vs. Sold vs. Pended (January 2019-March 2020) Milton Freewater, Oregon
It’s a Seller’s Market** Property Sales (Sold): March property sales were 7, up 200% from 2 in March of 2019 and 40% higher than the 5 sales in February. Current Inventory (For Sale): Versus last year, the total number of properties available this month is higher by 9 units of 112.5%. This year’s bigger inventory means that buyers who waited to buy may have a bigger selection to choose from. The number of current inventory is down 22.7% compared to last month. Property Under Contract (Pending): There was a decrease of 26.7% in the pended properties in March, with 11 properties versus 15 last month. This month’s pended property sales were 266.7% higher than at this time 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.
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Average Price per SQFT (Sold) (January 2019 - March 2020) Milton Freewater, 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 March 2020 Average Sold Price per Square Footage of $105 was up 34.6% from $78 last month and down 5.4% from $111 in March of last year. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Avg Days on Market & Sales Price/ Original List Price % (January 2019 - March 2020) Milton Freewater, 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 tends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards a Seller’s market. The DOM for March 2020 was 124, down 35.8% from 193 days last month and down 9.5% from 137 days in March of 2019. 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 97% is up 14.1% from last month and up from 6.6% in March of last year. *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 (January 2019 - March 2020) Milton Freewater, Oregon
The Average For Sale Price is Appreciating** The Aveage For Sale Price in March 2020 was $409,000, up 46.6% from $279,000 in March 2019 and up 12.7% from $363,000 last month. The Average Sold Price is Neutral** The Average Sold Price in March was $201,000, up 39.6% from $144,000 in March of 2019 and up 34.9% from $149,000 last month. The Average Sold Price is Neutral** The Median Sold Price in March was $240,000, up 66.7% from $144,000 in March of 2019 and up 152.6% from $95,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (January 2019 - March 2020) Milton Freewater, 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 March 2020 Months of Inventory based on Closed Sales of 2.4 was decreased by 40% compared to last year and down 45.5% compared to last month. March 2020 is a Seller’s market. Months of Inventory based on Pended Sales The March 2020 Months of Inventory based on Pended Sales of 1.5 was decreased by 45% compared to last year and the same compared to last month. March 2020 is a 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 (January 2019 - March 2020) Milton Freewater, 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 March 2020 Absorption Rate based on Closed Sales of 41.2 was increased by 64.8% compared to last year and up 81.4% compared to last month. Months of Inventory based on Pended Sales The March 2020 Absorption Rate based on Pended Sales of 64.7 was increased by 72.5% compared to last year and down 5.1% 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 These offices are owned and operated independently
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Homes for Sale vs. Sold vs. Pended (January 2019-March 2020) Hermiston, Oregon
It’s a Seller’s Market** Property Sales (Sold): March property sales were 66, down 7% from 71 in March of 2019 and 43.5% higher than the 46 sales in February. Current Inventory (For Sale): Versus last year, the total number of properties available this month is higher by 24 units of 14.6%. This year’s bigger inventory means that buyers who waited to buy may have a bigger selection to choose from. The number of current inventory is down 1.6% compared to last month. Property Under Contract (Pending): There was an increase of 1.1% in the pended properties in March, with 88 properties versus 87 last month. This month’s pended property sales were 25.7% higher than at this time 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.
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Average Price per SQFT (Sold) (January 2019 - March 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 March 2020 Average Sold Price per Square Footage of $116 was down 4.1% from $121 last month and up 18.6% from $113 in March of last year. **Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Avg Days on Market & Sales Price/ Original List Price % (January 2019 - March 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 tends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards a Seller’s market. The DOM for March 2020 was 75, down 7.4% from 81 days last month and up 33.9% from 56 days in March of 2019. 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 96% is up 3.2% from last month and down from 1% in March of last year. *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 (January 2019 - March 2020) Hermiston, Oregon
The Average For Sale Price is Neutral** The Aveage For Sale Price in March 2020 was $291,000, down 6.1% from $310,000 in March 2019 and up 0.3% from $290,000 last month. The Average Sold Price is Depreciating** The Average Sold Price in March was $207,000, up 11.9% from $185,000 in March of 2019 and down 11.2% from $233,000 last month. The Average Sold Price is Neutral** The Median Sold Price in March was $218,000, up 24.6% from $175,000 in March of 2019 and down 4.4% from $228,000 last month. ** Based on 6 month trend - Appreciating/Depreciating/Neutral.
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Months of Inventory Based on Closed Sales (January 2019 - March 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 March 2020 Months of Inventory based on Closed Sales of 2.8 was increased by 21.6% compared to last year and down 33.7% compared to last month. March 2020 is a Seller’s market. Months of Inventory based on Pended Sales The March 2020 Months of Inventory based on Pended Sales of 2.1 was decreased by 8.5% compared to last year and down 4.6% compared to last month. March 2020 is a 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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These offices are owned and operated independently
Absorption Rate based on Closed Sales (January 2019 - March 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 March 2020 Absorption Rate based on Closed Sales of 35.1 was decreased by 18.9% compared to last year and up 45.7% compared to last month. Months of Inventory based on Pended Sales The March 2020 Absorption Rate based on Pended Sales of 46.8 was increased by 9.6% compared to last year and up 2.9% compared to last month. **Buyer’s market: 16.67% and below. Seller’s market: 33.3% and above. Neutral market: 16.67%-33.3%.
John L. Scott Real Estate Columbia Basin Region These offices are owned and operated independently
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Final Thoughts Final ThoughtsWe have jobs, low interest rates, a high percentage of essential workers, a back log of buyers, low inventory, and high demand. We have this in the entire region. The offices that comprise the Columbia Basin Region of John L. Scott had sale volume records in January and March which allowed us to obtain a record setting first quarter. As we look toward Q2, 2020 we must look back to our average Q2 performance. The average is approximately $15 Million in Q2 over the last 10 years. Looking to what we have booked in Q2 2020, right now, we are only down 18.9%. I say “only” as anything we generate today can still close and therefore count in June. Which means we still could meet or exceed our average performance. It will be interesting to follow the numbers and trends established during this unprecedented time. From John L Scott Columbia Basin Region, we hope you stay home and stay healthy.
* source is the US Census Data 2018 **source is from the respective multiple listing services serving the community.
Dennis Gisi,
Broker®/Owner (509) 520-0505 DGisi@JohnLScott.com
John L. Scott Real Estate Columbia Basin Region 34
These offices are owned and operated independently
Meet Our Agents WALLA WALLA
Sarah Bergman Kenneth Butler
Adrian Ceja
Diane Davis
Robert Gisi
Jarome Hagen
Lewis Key Christina Magnaghi Britt Merson
Nancy Ross
Larena Upton
Kerri Walker
MILTON-FREEWATER
Lewis Key
Andrés Salinas Kerri Walker
TRI-CITIES PASCO
Randy Blumer Geoff Guidry Jay Hendler
Jason Huffman Tina Morales
Emily Nichols
Terry Parrish
Haley Pratt
Debbi Schmoe
Tony Verret
Juan Zuniga
Nereida Zuniga
Myrna Dorn
Carlos Meza
Rhonda Alberts
Scott Saltz
Teri Seidl
HERMISTON
Don Brewer
Phil Otto
Dalia Villegas Debora Wood 35
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